Limited Liability Partnership (LLP) – Setting Up, Annual and Tax Declaration Malaysia

To set up a Limited Liability Partnership (LLP) or Perkongsian Liabiliti Terhad (PLT)

SSM KL Sentral Level 17

*This is for non-member of Professional Body

*More info of LLP on SSM Website

MyLLP Portal Registration

• Register a new account on myllp.ssm4u.com.my by clicking “Register”. 

• Once you’ve successfully registered on the system, you will receive a Registration Notification email

There are two ways to activate your MyLLP account:

1. Activate Physically Nearest SSM Office

• Bring the printed Registration Notification email and original IC to the SSM Office Counter
• Take your number and wait for your turn. Pass the email you printed and your IC to the person at the counter to verify your registration.

*For SSM KL Sentral, take the lift to Level 17

2. Activate online – Prepare documents below and email to ubmhq@ssm.com.my

Then you will receive an email that says your account has been activated. Use the same login and password you entered during registration.

Source: FAQ Limited Liability Partnership 

LLP Registration

• Login to myllp.ssm4u.com.my.
• To check if the name you want for your LLP has been taken or not, go to the Menu “Starting a LLP” -> Local Name Reservation -> Enter “Proposed Name Reservation” -> Search
• To register an LLP, go to the Menu “Starting a LLP” -> Direct Registration

(1) Enter your LLP name. You can select the suffix: PLT or Perkongsian Liabiliti Terhad. The system will add the suffix after the name (example: Sunshine PLT or Sunshine Perkongsian Liabiliti Terhad). Click “check name” button. Click on the “next” button.

(2) Enter Your LLP Details (Address can be your physical/ virtual office, home, PO Box)

(3) Enter Your Business Code(s). (Up to 3 only)

(4) Enter Compliance Officer Details (example: yourself)

(5) Partner Details – Add Partner(s) Information

(6) Supporting Documents

(7) Fee and Declaration – Make Payment: RM500 by credit card or online bank transfer

• You will then receive an email – Approved (LLP is successfully registered) or Rejected (with reason and next course of actions).

Purchase and Download LLP Documents

• Login to ‘XCESS’: xcess.ssm4u.com.my
• Select “Entity Search” and enter LLP name and Search
• Click on the Entity

• You can add the documents you want to the shopping Cart. For Language, you can select English, Malay or both. The documents are required for other applications such as bank account, tax file, etc.

• 1. Registration Certificate: RM20
  2. LLP Current Profile: RM20
• Go to Cart, confirm Order and Make payment.

You will receive an email that says “A product order has been received and processed. Please go to ‘My Orders’ on SSM XCESS to download the referenced product. The product order will be available within 7 days from the date of product purchase.” Now you don’t have to collect the documents at SSM, they will be automatically sent to your ‘Orders’ to be downloaded.

Note: You have to check ‘My Orders’. The products will be removed after 7 days.

I purchased the LLP Certificate and Profile, checked the Orders after the purchase but could not see anything there. So I called SSM after 7 days. After the 8th call (the person on the phone asked me to call another number), I finally got to the person in charge. This is the number: 03-2299 4744. She sent me the documents.

LLP Agreement

The limited liability partnership agreement shall be in the national language or
English language, and shall consist of the following particulars:
(a) the name of the limited liability partnership;
(b) the nature of business of the limited liability partnership;
(c) the amount of capital contribution by each partner; and
(d) that the partners have agreed to become partners of the limited liability partnership

In the absence of an LLP agreement the Second Schedule of the LLP Act 2012 shall apply. (Search for Second Schedule Clauses)

LLP Obligations

TAX FILE

• Register a Tax File for your LLP online at e-Daftar. (Tarikh Mula Akaun is the incorporation date. Tarikh Tutup Akaun is the Accounting period end date. You can leave the Maklumat Ejen Cukai blank if you don’t have one).
• You’ll also need to submit a copy of your LLP certificate.
• After the application, you will be given income tax no. PT xxxxx xxxxx (10 digit number)

TAX ESTIMATE

• If you’re an SME (less than RM 2.5 million paid-up capital, and not related to a company > RM 2.5 million capital), you don’t need to fill up the tax estimate portion for the first 2 years. Have to fill submit Form CP204 anyway, but leave sections 2 and 6 blank. Basis Period (Tempoh Asas) is the business commencement date till the end of accounting period.
• Now CP204 form for Income Tax Estimate can be filled online: ez.hasil.gov.my (e-Filing -> e-Company’s Tax Estimation -> e-CP204). Info on How to apply for ezHASIL Login.

EMPLOYEES

If you have employees, apply EPF within 7 days of hiring an employee and SOCSO within 30 days.

EMPLOYER’S FILE (Borang Daftar Majikan)

• All LLPs have to register for an Employer’s File which can be done online here: DaftarMajikan to get the E number in 3 days. My application got approved in 2 days. Partners are not considered as employees.

EMPLOYER’S RETURN FORM (Borang E)

• Submit Employer’s Return Forms (Borang E, example E-2018) by 31st March every year even you don’t have any employees, starting from the following year of LLP registration.
• Online: According to LHDN, LLP (PLT) can fill out the Borang E online, Login to ez.hasil.gov.my. Select E-filing > e-Borang > e-E 
• For offline: To download the form go BorangMajikan. Select Borang Majikan and the year of taxation. (This form is for reference only)

ANNUAL DECLARATION

• Annual Declaration can be done online myllp.ssm4u.com.my.
• Go to Menu “Post Registration” -> Annual Declaration -> Submit Annual Declaration
• First annual declaration needs to be done within 18 months from your LLP’s registration date. For subsequent years, it needs to be done within 90 days from the end of your LLP’s financial year. Example: Registration date: 12th July 2017.
  • Financial year: 1st Jan – 31st Dec
  • First accounting period: 12th July 2017 – 31st Dec 2018
  • First Annual Declaration: 12th July 2017 + 18 months = by 11th Dec 2018
  • Future Annual Declaration: 31st Dec + 90 days = by end March every year
  • Submission of Tax Declaration: 31st Dec + 7 months = by end July every year

Information required: Capital Contribution of each partner, enter 0 if no contribution.
Fiscal Year End, Financial indicators (in RM): Assets, Liabilities, Revenue, Profit/ Loss.

TAX DECLARATION

• Submit Within 7 months from the end of your accounting period. For example, 1st Jan to 31st Dec, you need to submit your tax declaration by end July.

e-Filing

Tax filing can now be done online on ez.hasil.gov.my.

Application for LHDN ezHASIL Login

• Apply for ezHASIL Login Pin number/ digital certificate for your LLP for e-filing.
• For any inquiries you can send you questions here: BorangMaklumBalas or use the HASILchat system on the ezHasil website

*The chat system disconnected and reconnected itself every 3 seconds, and occasionally the system logs itself out. I have to restart the chat with another support person who would have to read the chat history of my request. It was a desperate move as I sent an inquiry but no one answered it, sigh! For a department that collects tax from us, if this is what it can offer, I am utterly underwhelmed.

First Time Login and Tax Filing

They will send you an email with the OeF Pin No. Then

• Log on at mytax.hasil.gov.my.

• Click First Time Login. Enter your PIN No. (OeF) and Reference No.(Identification No.) to register your Digital Certificate.

To Login and File your LLP Tax Online

From 1 January 2023, OeF and Administrator roles will only use individual digital certificates for all taxation matters.

To change the role from individual to organization, please follow the steps below:-

• Click on Login: mytax.hasil.gov.my
• Enter your Reference No. (Identification No.) and password (Login with the individual ID of the director)
• Select the “Role Selection”

• Under “Directors of the Company” -> Select Company.
• Organization information view will be displayed.

• Go to Menu -> ezHasil Services -> “e-Filing” -> e-Form
• Choose the relevant form and the year of assessment

• Enter your business Income Tax No. and Click Proceed

• Complete the form and click Sign and Submit. Acknowledgement Receipt will appear. Please print and save the acknowledgement.

Manual process

submit Form PT 20xx (Malay version) to LHDN by post/hand to Bangi branch.

• You can download the form BorangNyataTax – Borang: “Selain Syarikat & Selain Individu” and select year of taxation. Scroll down to “Perkongsian Liabiliti Terhad”.
• The English version of PT20xx is for reference only and cannot be used for submission.

Tax Declaration Terms

• Pendapatan Kasar (Gross Income)
• Pendapatan Larasan (Adjusted Income/ Loss): Gross income minus allowable expenses
• Elaun Modal (Capital Allowance): Money spent on business assets such as car, machine, furniture, office equipment
• Pendapatan Berkanun (Statutory Income): Adjusted Income minus Capital Allowance
• Pendapatan Agregate (Agregate Income): if there are more than one businesses in the company, all the statutory income will be accumulated
• Rugi Perniagaan Tahun Semasa (current year business loss) – Business Loss example: Property Loss – Physical damage to property, equipment example by fire. Liability loss – A business may be held liable for injuries suffered by an individual. Business premise renovation is capital expenditure not business loss.
• Pendapatan dikenakan cukai (Chargeable Income): After all adjustments are made, the company tax can be calculated from this amount
• Pelupusan aset (Asset disposal) is the act of selling an asset usually a long term asset that has been depreciated over its lifespan like machine.
• Cukai pegangan (Withholding tax or Retention tax) is an income tax to be paid to the government by the payer of the income instead of the payee. The tax is withheld or deducted from the income to be paid to the payee. For example, employment income.
• Tempoh asas (basis period) is the period the partnership pays tax each year and is usually the same as the accounting period.
• Amaun diserap (amount absorbed) – manufacturing costs (variable and fixed overhead costs) that have been assigned to the units of goods produced example: materials, direct labor, rent, and insurance

Current Bank Account for LLP

To open a bank account for your LLP: CIMB Current Account

Download the form here: CIMB Current Account for Business. Fill up the form and go to the bank and submit the form physically. 

Cimb Corporate Account Contact Number: 1300 888 828

When is Taxable

According to Hasil- MyTax website, individuals who earn an annual employment income of more than RM34,000 and has a Monthly tax Deduction (MTD) is eligible to be taxed.

Sources

*You can follow the steps described by Mr-Stingy