If you are planning a business in Labuan, you can decide on establishing a partnership in this offshore jurisdiction and benefit from a series of advantages for such structure. There are two types of partnerships accepted in this jurisdiction, the Labuan limited partnership (LP), and the Labuan Limited Liability Partnership (LLP). Each attribute of the above-mentioned types of partnerships can be explained by our company formation specialists in Labuan.
What is an LP in Labuan?
A Labuan limited partnership can be established by at least two members, one general partner with unrestricted rights and management control, and a limited partner who cannot participate in the business but contributes with the capital. The registration process of a Labuan limited partnership is done as follows:
- • a Labuan trust company to perform the due diligence process is necessary for registering a limited partnership in Labuan;
- • the name of the partnership needs to contain the abbreviation LP at the end of it, as a general rule at the time of registration;
- • the certified copy of the partnership convention is mandatory for registering the Labuan LP;
- • information about the capital of the partnership needs to be provided to the authority.
Instead of dealing with possible misinterpretations, we suggest you get in touch with our company incorporation agents in Labuan for assistance at the time of Labuan limited partnership registration.
Registering a Labuan limited liability partnership
Limited liability partnerships in Labuan are usually adopted for professional services or joint ventures, due to the characteristics of this type of entity. One of the advantages of this kind of entity is that the limited members can be replaced or can leave the partnership without closing the business. As for the registration of a Labuan limited liability partnership, just like in the case of an LP, a Labuan trust company needs to be appointed for due diligence before the incorporation. Besides the forms provided by the authorities, the partnership agreement needs to be offered in a notarized form.
What is the liability of an LLP in Labuan?
The liability of the partners is limited to the capital invested in the partnership. It is good to know that the partnership members cannot participate in the daily activities, as a board of managers will operate in this direction.
Please feel free to contact our team of company formation representatives in Labuan for extra information about how to register a partnership in this offshore jurisdiction.
We also invite foreign investors for advice and legal assistance on the registration of a Labuan offshore business. Our consultants can help you prepare the required documentation that is imposed by the law.
We can also help you select a suitable company type, in accordance with the type of rights and obligations you want to assume as the founder/shareholder of the business.