A Limited Liability Partnership (LLP) is a type of business entity that permits a partner to be shielded from liability of partnership obligations created by another partner’s, or person’s misconduct.
The minimum number of partners for a Labuan LLP is two partners, ie one designated partner and one limited partner.
- It protects members from personal liability, except to the extent of their investment in the LLP.
- LLPs are not a separate entity for income tax purposes. Profits and losses are passed through directly to the partners.
The general process for registering a Labuan LLP involves the following:
- The applicant must appoint a Labuan trust company for the registration, which would conduct due diligence on the applicant. All documentation required to be submitted to Labuan FSA must be filed through a Labuan trust company.
- A Labuan LLP shall have the words “Labuan Limited Liability Partnership”, “(Labuan) L.L.P.” or “Labuan LLP” as part of its name (any other abbreviations in romanised characters which connotes a limited liability partnership may be approved by Labuan FSA).
- The name may be in foreign characters, alphabets or languages provided that an accurate and certified rendition of the name in the English language is clearly stated in all its documents.
- The application for registration must be accompanied by the relevant documents and payments.
Partnership Registration under the Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA).
Section 131(2) of the Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA) requires that the applicant appoint a qualified person to act as a Shariah adviser for the partnership. The duties of the Shariah adviser pertain to the management and operations of the Islamic partnership to ensure compliance with Shariah principles.