OCTIS vs Sdn Bhd vs LLP vs partnership for co-owned businesses in Malaysia

Three ways to run a business with partners, compared on SSM fees, liability and yearly paperwork.

Last checked 9 November 2026 · 8 sources

Otty's short answer

Choose a Sdn Bhd if you want investors, staff share schemes or the widest acceptance by banks and customers. Choose an LLP for a professional practice or joint venture where partners want limited liability and a lighter regime. Choose a general partnership only for a small, low-risk venture: SSM says the partners carry unlimited, joint liability.

Side by side

Swipe to see every column

What matters	OCTISSdn Bhd + OCTIS	Sdn Bhd	LLP	General partnership
Separate legal entity	Yes	Yes	Yes, a body corporate	No
Owner liability	Limited to unpaid shares	Limited to unpaid shares	Limited to contribution	Unlimited, joint and several
Number of owners	One or more members	One or more members	2 or more, no maximum	2 to 20 partners
SSM registration fee	At least 10% below any qualifying quote (Lowest Price Guarantee) through OCTIS	RM1,000 + RM50 per name	RM500	RM60 per year (trade name)
Yearly SSM filing	Annual return filed with SSM	Annual return, RM150	Annual declaration, fee not published	Renewal, RM60 per year
Who manages the business	Board of directors	Board of directors	The partners	The partners
Company secretary	Licensed company secretary provided	Required within 30 days	No, compliance officer instead	Not required
Annual statement to SSM	Financial statements, audit unless exempt	Financial statements, audit unless exempt	Solvency declaration within 90 days	Renew registration only
Companies can be owners	Yes	Yes	Yes	Not stated by SSM
Registered through	SSM Corporate Registry System	SSM Corporate Registry System	SSM MyLLP portal	SSM business registration

Data sources & disclaimer: Comparison data was compiled from publicly available sources — including the competitors' own published pricing and feature pages — captured on 9 November 2026. Figures reflect the typical or advertised pricing at that time and may have changed since; plans, inclusions and prices vary by provider, region and promotion. OCTIS is independent and not affiliated with the named companies; all trademarks belong to their respective owners. This comparison is provided in good faith for general information only and is not professional, legal or financial advice — please verify current details with each provider before deciding.

Which one fits you

OCTIS · Sdn Bhd + OCTIS
Choose OCTIS if you want a Sdn Bhd registered and run for you, with the company secretary, accounts, filings and audit coordination handled in one place.
Sdn Bhd
Choose a Sdn Bhd if you expect to take investors, issue shares, hire many staff, or want the structure that banks and large buyers know best.
LLP
Choose an LLP if two or more partners, or two companies in a joint venture, want limited liability with flexible internal terms and no company secretary.
General partnership
Choose a general partnership if you are two to twenty Malaysian owners running a small shop or service and accept joint personal liability.

What the table does not show

How liability really differs

SSM publishes a chart comparing the four vehicles. In a general partnership and a sole proprietorship, the owners carry unlimited liability that can reach personal assets. A company stands alone, and shareholders risk only unpaid shares. An LLP is a body corporate with a legal identity separate from its partners. A partner is not personally liable for the LLP, except for their own wrongful act or omission. For most co-owners this is the main reason to leave a plain partnership.

Fees and yearly upkeep

An LLP costs RM500 to register or convert, according to the SSM booklet. A Sdn Bhd costs RM1,000 plus RM50 per 30-day name reservation, and providers quote RM1,010 all-in, against RM1,050 from SSM figures. A partnership with a trade name pays RM60 a year. Upkeep differs more than set-up. A Sdn Bhd needs a company secretary and files an annual return of RM150 plus financial statements. An LLP appoints a compliance officer and lodges a solvency declaration within 90 days of year end. SSM does not publish the LLP declaration fee in that booklet.

When an LLP stops being enough

An LLP fits professional practices and joint ventures. SSM notes that two companies can form an LLP, which is the most common joint venture setup. It is less suited to raising equity from investors, because partners hold capital contributions rather than shares. If you plan to issue shares, offer staff options or bring in venture money, a Sdn Bhd is the usual choice. Tax treatment also differs by entity, so ask an accountant or LHDN before you choose.

Where OCTIS fits

Whichever structure you pick, the paperwork follows: registration, a secretary or compliance contact, books and tax. OCTIS incorporates Sdn Bhd companies, acts as company secretary, keeps the books, files tax and coordinates the statutory audit with an independent licensed auditor. If you already pay for these, ask for a quote: OCTIS aims for 10% to 30% off your current bill.

See OCTIS pricing

Frequently asked questions

Is an LLP better than a Sdn Bhd in Malaysia?

Neither wins everywhere. An LLP costs RM500 to register, needs no company secretary and suits partners who want limited liability with simple rules. A Sdn Bhd costs more to run but can issue shares and is easier to use when raising money or dealing with large customers.

What is the difference between a partnership and an LLP in Malaysia?

A general partnership is not a separate legal entity, and the partners are jointly liable with it without limit. An LLP is a separate body corporate, and partners are not personally liable for its debts except for their own wrongful acts. An LLP has no maximum number of partners.

How much does it cost to register an LLP at SSM?

SSM's LLP booklet states a registration fee of RM500 for a new LLP or a conversion into one. The annual declaration fee is not given in the booklet, so check the MyLLP portal before budgeting.

Does an LLP need a company secretary?

No. An LLP needs a compliance officer, registered through the MyLLP portal, who handles filings under the LLP Act 2012. A Sdn Bhd must appoint a licensed company secretary within 30 days of incorporation.

Can two companies form an LLP?

Yes. SSM's FAQ confirms that two companies can form an LLP and calls this the most common joint venture structure. The LLP is then a separate legal body, and each company risks only its agreed contribution plus liability for its own wrongful acts.

Sources

Checked on the date above. Links open the provider's or regulator's own page.