What types of business entity can convert to LLP?
After the conversion into an LLP, the conventional partnership or private limited company shall be deemed to be dissolved. The effect on the conversion means that the properties, interests, rights, privileges, liabilities, obligations and the undertaking of the conventional partnership / private limited company are transferred to LLP, such as below:
- All assets held by conventional partnership / Sdn Bhd will be vested to LLP.
- All pending proceedings may be continued, completed and enforced against or by the LLP.
- Any conviction, ruling, order or judgement may be enforced by or against the LLP.
- Existing agreements and contracts shall have effect as though the LLP were a party.
- The Partners and the Directors shall continue to be personally liable (jointly and severally with the LLP) for liabilities and obligations incurred prior to the conversion.
- Permit or License issued under the conventional partnership or private limited company will be invalid, the LLP may need to reapply the permit or license under its name.