The statutory basis

Section 30 of the Limited Liability Partnerships Act 2012, read with the Third Schedule, governs conversion of a private company into an LLP. (Section 29 governs conversion of a conventional partnership, a different route.)

Conditions for conversion

Conversion under section 30 is only available where all of the following are satisfied:

  • Every shareholder becomes a partner of the LLP, and no one else. Outside parties cannot be added at conversion.
  • The company is solvent: able to pay its debts as they fall due in the ordinary course of business at the date of the application.
  • All outstanding charges (mortgages, debentures) over the company's assets have been settled or otherwise discharged.
  • Statutory fees and filings are up to date with SSM.
  • Mandatory notice has been published in a newspaper widely circulated in Malaysia and in the Gazette, giving creditors the opportunity to object.
  • Creditors are given the opportunity to object through the statutory notice process. Where a creditor lodges an objection, the conversion may be delayed or made contingent on settlement, depending on how the objection is resolved.

The SSM process

  • Application is made through the MyLLP portal, with the prescribed forms and supporting documents.
  • SSM processing takes around 1 to 3 working days where documents are in order.
  • The newspaper / Gazette notice period and any creditor consent step typically push the real-world timeline to 4 to 8 weeks.
  • On approval, SSM issues a notice of registration of the LLP and removes the company from the Companies Register.

What changes on conversion

The Third Schedule to the LLP Act 2012 provides for a comprehensive vesting and deeming regime:

  • All property, assets, interests, rights, privileges, liabilities, obligations and the whole undertaking of the company vest in the LLP automatically.
  • Pending proceedings by or against the company continue against the LLP.
  • The company is deemed dissolved and removed from the Companies Register; no separate winding-up is required.
  • Existing contracts continue in force as if originally entered into by the LLP, but watch for change-of-control or assignment clauses that may need consent.

What does not transfer automatically

  • Licences and permits tied to the company's identity may require the regulator's specific approval to transfer to the LLP.
  • Banking facilities typically require lender consent and may be re-papered.
  • Property leases with change-of-control clauses may need landlord consent.
  • Employment contracts generally continue, but it is good practice to issue a notice of the conversion to employees and to confirm continuity of service.

Why companies convert, and why some do not

Common reasons to convert: lighter compliance burden, simpler profit-sharing flexibility, no statutory audit by default, and partner-led management instead of board governance. Reasons to stay a Sdn Bhd: ease of raising external funding, share-based equity incentives, investor familiarity, and the ability to scale beyond 50 owners. The conversion is irreversible (an LLP cannot simply re-convert to a Sdn Bhd), so the decision should be made with the next 5 to 10 years in mind, not just the next 12 months.

If you are weighing a Sdn Bhd to LLP conversion, please contact us early. The conversion mechanics, contract reassignment, and creditor notice steps benefit from being mapped before the application is filed.

法定依据

《2012 年有限责任合伙法令》第 30 条，连同附表三，规范私人有限公司转为 LLP。（第 29 条规范的是普通合伙之转换，属不同路径。）

转换之条件

依第 30 条进行转换，须同时满足下列全部条件：

  • 每位股东均成为 LLP 之合伙人，且仅限此等股东。转换时不得加入外部方。
  • 公司具偿付能力: —在申请日，能在正常经营下偿付到期债务。
  • 所有未结清之押记（抵押、债权证）已结清或解除。
  • 法定费用与申报已与 SSM 保持更新。
  • 已依规定刊登通告: —在马来西亚广泛流通之报章及 Gazette 上，给予债权人异议机会。
  • 债权人可通过法定通告程序提出异议。债权人正式提出异议时，转换可能因此延迟，或以异议得到处理（例如清偿）为条件。

SSM 程序

  • 申请通过 MyLLP 系统提交，附上指定表格及佐证文件；
  • 文件齐备时，SSM 处理通常需 1 至 3 个工作日；
  • 报章／Gazette 通告期及债权人同意步骤，将实际时间表推至 4 至 8 周；
  • 获批后，SSM 出具 LLP 注册通知，并将该公司从公司登记册中除名。

转换后哪些事项发生变化

《LLP 法令》附表三规定了全面之归属与视同制度：

  • 公司之全部财产、资产、权益、权利、特权、负债、义务及整个业务，自动归属 LLP；
  • 正在进行之诉讼（无论由公司提起或对公司提起）继续以 LLP 名义进行；
  • 公司被视为解散并从公司登记册中除名，无需另行清盘；
  • 现有合同继续有效，如同最初即由 LLP 订立，但须留意其中之「控制权变更」或「转让」条款，可能须征得同意。

不自动转移之事项

  • 与公司身份挂钩之牌照与许可可能须监管机构特别同意方可转至 LLP；
  • 银行授信通常须贷方同意，并可能重新签署文件；
  • 含控制权变更条款之物业租约可能须业主同意；
  • 雇佣合同一般继续有效，惟最佳实务是向员工发出转换通知，并确认服务连续性。

为何转换，以及为何有些公司选择保留 Sdn Bhd

转换之常见理由：合规负担较轻、利润分配更灵活、默认无须审计、且由合伙人主导管理而非董事会治理。保留 Sdn Bhd 之理由：便于引入外部融资、可发行股权激励、投资人更熟悉、且可扩展至 50 名以上所有者。转换不可逆（LLP 不能简单回转为 Sdn Bhd），故决策应以未来 5 至 10 年之视角作出，而非仅看下一年。

若您正考虑将 Sdn Bhd 转换为 LLP，建议提前与本所联系。转换机制、合同重新指定及债权人通告流程，应在递交申请前完整梳理。