Registering a business reality with the Companies Commission of Malaysia( SSM) is the first demand to run a business fairly in Malaysia. There are 3 orders of business reality enrollment , videlicet Registration of Business( ROB), Registration of Company( ROC), and Limited Liability of Partnership( LLP). These are regulated by different laws independently, with a aggregate of 8 business realities to choose from.
1. Sole Proprietorship
A Sole Proprietorship is the simplest business reality to get started with if you’re running your business alone at a small scale. You can register a Sole Proprietorship using your particular name at only RM30 or a trade name at RM60. The process of Sole Proprietorship enrollment has to be done on your own without going through a third party. As you’re the only business proprietor, you bear all arrears towards the business in your particular capacity and pays levies through your particular income duty.
still, request for this free companion on converting your enterprise into a Sdn Bhd, If you’re considering converting your Sole Proprietorship into a Sdn Bhd in the future. This companion covers utmost of your enterprises about the conditions of company objectification and its posterior compliance with colorful laws and regulations, since Sdn Bhd companies are regulated more rigorously by the Companies Commission of Malaysia( SSM) than other enterprises.
Who should register their business as a Sole Proprietorship?
Company registration in Malaysia who want to start a small business alone.
Advantages of a Sole Proprietorship
- It’s cheap to register.
- It has a simple enrollment process
- .It has simple compliance to follow.
Disadvantages of a Sole Proprietorship
It has to be renewed annually.
- You bear all arrears towards the business in your particular capacity.
- Your particular income duty can be precious.
- It’s delicate to gauge since you aren’t suitable to issue shares to get investments.
2. Partnership
A Partnership is a business reality that consists of at least 2 mates, with a limit of 20 mates. analogous to a sole procurement, mates of the cooperation share the arrears towards the business and pay levies through particular incometaxes.However, you and your mate( s) will be tête-à-tête liable to any damages awarded by the court, If your Partnership is sued by a client. This is a common business reality for professionals similar as attorneys, accountants, company registers, croakers ,etc.
still, request for this free companion on converting your enterprise into a Sdn Bhd, If you’re considering converting your Partnership into a Sdn Bhd in the future. This companion covers utmost of your enterprises about the conditions of company objectification and its posterior compliance with colorful laws and regulations, since Sdn Bhd companies are regulated more rigorously by the Companies Commission of Malaysia( SSM) than other enterprises.
Who should register their business as a Partnership?
Malaysians or endless residers of Malaysia who want to start a small business with business mates.
Advantages of a Partnership
- It’s cheap to register.
- It has a simple enrollment process.
- It has simple compliance to follow.
- You can partake the arrears towards the business with your mates.
Disadvantages of a Partnership
- It has to be renewed annually.
- Your particular income duty can be precious.
- It’s delicate to gauge since you aren’t suitable to issue shares to get investments.
3. Sendirian Berhad( Sdn Bhd) Private Limited Company
An Sdn Bhd company is a private company limited by shares. It’s a separate legal reality which is able of earning inflows, retaining parcels, subscribing contracts, suing another reality, and getting sued on its own name, separating your arrears from the company itself. Since the updates of the Companies Act 2016 came into effect, you can incorporate a Sdn Bhd as the only director and shareholder of the company without other business mates.
Who should incorporate their company as a Sdn Bhd?
Advantages of a Sdn Bhd
- It’s fairly cheap to register.
- It has fairly simple compliance to follow.
- It separates your particular arrears from the company itself.
- It’s suitable to gauge by adding paid- up capital and issuing shares to investors.
- It can be 100 foreign- possessed.
Disadvantages of a Sdn Bhd
- It’s unfit to expand beyond 50 shareholders.
- It’s unfit to raise finances from the public.
- The transfer of shares is confined.
4. Company Limited by Guarantee( CLG)
There are no shareholders, only members who act as sponsors to run the operation. You and other members don’t contribute capital to the company but are responsible to pay debts if it closes down, according to the quantum of guarantee as promised. Hence, it’s unfit to use its gains for purposes other than those stated as objects in the constitution.
Who should register their company as a CLG?
Non-profit organisations.
Advantages of a CLG
- It requires no outspoken capital donation from members.
- It’s the only business reality that can promote art, wisdom, religion, charity and pension schemes.
- It can apply to get exempted from paying commercial levies.
Disadvantages of a CLG
- It’s expensive and delicate to register.
- It has strict compliance to follow.
- It isn’t allowed to release or enjoy any property rights.
- It’s unfit to convert to other business reality.
Members are still liable towards company debt if the company closes down within one time after they’ve left the company.
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