An LP can be formed with a minimum of two partners – a General Partner and a Limited Partner. Responsibility for running the operation lies with the General Partner and his personal liability is unlimited. He assumes liability for the actions of the other partners and his assets may be surrendered to creditors if the business defaults on its loans.

The Limited Partner does not have an active role in the daily running of the business, and as the title suggests, has his risk mitigated by limited liability. In other words, his assets are not placed at risk and at worst he can only lose the capital that he has invested. This protection is introduced in Section 19 of the Act states that a Limited Partner shall not be liable for the debts or obligations of the Labuan Limited Partnership.

Features of Labuan LP

Labuan  LP

Corporate Details

General

  • Type of Entity

LP

  • Registered Office in Labuan

Yes

  • Shelf company availability

No

  • Our time to establish a new company

4 weeks

  • Corporate Taxation

Yes

  • Access to Double Taxation Treaties

No

Share capital or equivalent

  • Standard currency

US$

  • Permitted currencies

EUR, USD, GBP

  • Minimum paid up

None

No

  • No-par-value shares allowed

No

Directors

  • Minimum number

Two

  • Local required

No

  • Publicly accessible records

Yes

  • Location of meetings

Anywhere

  • Corporate directorship allowed

No

Shareholders

  • Minimum number

Two

  • Publicly accessible records

Yes

  • Corporate shareholders allowed

Yes

  • Location of meetings

Anywhere

Company Secretary

  • Required

No

  • Local or qualified

No

Accounts

  • Requirements to prepare

Yes

  • Audit requirements

No

  • Requirements to file accounts

Yes

  • Publicly accessible accounts

Yes

Other

  • Requirement to file annual return

Yes

  • Migration of domicile permitted

Yes

 Labuan LP Distinctive Benefits

  •  The benefit of this model is clear – managing partners can attract investment to support growth and maintain operations without interference, and investors have the protection of limited liability, which encourages them to provide finance.
  • The flexibility of the model means that a Limited Partner can leave or be replaced without the limited partnership needing to be dissolved.
  • Another advantage of the LP structure is that partners can allocate profits, gains and losses as they wish, irrespective of any specific partner’s equity proportion (subject to tax law compliance).
  • The maximum number of partners permitted in an LP is 50.

The Valsen Advantage

  1. Speedy, Efficient and consistent Services.
  2. Relentless effort to obtain bank accounts.
  3. Expert advice on structuring options.
  4. Dedicated ongoing compliance support.