- A limited liability partnership can be incorporated in order to run a business that comprises of two or more partners. It is a type of partnership whereby certain or all partners have limited liabilities.
- It is different from a general/ conventional partnership which has unlimited liability but with two or more persons (and not exceeding 20 persons) owning the business.
- This concept of limited liability assures that in instances where the company may be sued, then it is the company that is sued and not the partners. In other words, an LLP has a separate legal identity whereby it is distinct from its partners.
- In Malaysia, businesses of limited liability partnership are regulated under the Limited Liability Partnership Act 2012:
“The provisions of the Partnership Act 1961[Act 135], and the rules of equity and of common law applicable to partnerships, shall not be applicable to a limited liability partnership registered under this Act.” – Section 4 of the Limited Liability Partnership Act 2012