90% Reduction Initiative for Compounds under the LLP Act 2012

Announcement: Additional 90% Reduction Initiative for Compounds under the Limited Liability Partnerships Act 2012

The Ministry of Domestic Trade and Consumer Affairs, also known as KPDN, through its agency, the Companies Commission of Malaysia, or SSM, has just announced a groundbreaking initiative to support businesses during their recovery phase.

Compound Reduction Initiative

It's called the Compound Reduction Initiative, and it aims to provide significant relief to limited liability partnerships operating in Malaysia.

Under the Limited Liability Partnerships Act 2012, partners of limited liability partnerships who have been imposed compounds and have complied will benefit from a remarkable 90% reduction in their compounds.

This means that Limited Liability Partnerships that have diligently followed regulations and fulfilled their obligations will now have the opportunity to reduce their financial burdens significantly.

Effective Date: July 3, 2023

This initiative will be in full effect from July 3rd, 2023, until the end of this year, December 31st, 2023.

A staggering 16,765 Limited Liability Partnerships across Malaysia will benefit from this generous reduction.

SSM, the Companies Commission of Malaysia, has emphasised that this initiative aligns with their efforts to promote legal compliance and create a business environment that nurtures growth and success.

In a challenging post-Covid-19 business environment, this initiative is expected to boost the business and corporate community, allowing them to continue their operations and contribute to Malaysia's economic recovery. As the sun sets on Kuala Lumpur, a new dawn rises for businesses in Malaysia. With the Compound Reduction Initiative, the Ministry of Domestic Trade and Consumer Affairs and the Companies Commission of Malaysia are paving the way for a brighter future.

For further information, interested parties can contact the SSM Call Centre at 03-77214000 or email enquiry@ssm.com.my.

To close your LLP, you are welcome to contact Tac Pro at 03-9056 1190 or 012-959 8313 to get a quotation.

KPDN (Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup Malaysia, English: Ministry of Domestic Trade and Costs of Living), through SSM (Suruhanjaya Syarikat Malaysia), announces an additional 90% reduction initiative for compounds under the Limited Liability Partnerships Act 2012.

Kuala Lumpur, 2nd July 2023 - The Ministry of Domestic Trade and Consumer Affairs (KPDN), through its agency, the Companies Commission of Malaysia (SSM), today announced an additional initiative of compound reduction aimed at supporting the business and corporate community in navigating the current recovery phase.

This compound reduction initiative under the Limited Liability Partnerships Act 2012 involves a 90% reduction in compounds from the original amount for Section 68(2) and Section 63(3) of the Limited Liability Partnerships Act 2012 for the partners of the Limited Liability Partnership who have been imposed compounds and have complied.

This initiative will be effective from 3rd July 2023 until 31st December 2023 and will benefit 16,765 Limited Liability Partnerships.

This initiative aligns with SSM's efforts to promote legal compliance while creating a conducive business environment in Malaysia.

It is also expected to assist the business and corporate community continue their operations in a challenging post-Covid-19 business environment.