Choosing The Legal Structures For Your Business.
Which structure suits me and my business partners; Sole Proprietor, Enterprise & Company (Sdn. Bhd.)?
New entrepreneurs are often having troubles in choosing the right form of business entity as it is one of the decisive factor for future expansion and financial planning. Entrepreneurs can consider of various options according to the scale of business.
Sole Proprietor: It is suitable for self ownership but the business entity does not have protection to the owner in terms of liability but it is the most cheapest way to set up the business.
Partnership: It is another common form of business ownership with another partner. It is simple to set up but however it does not limited liability and it often ends up internal fighting among partners due to financial problems.
Company (Sdn. Bhd.): Sdn. Bhd. is a separate legal entity which allows a minimum of 2 partners and a maximum of 50 shareholders. Sdn. Bhd. has limited liabilities, more organised, suitable for future expansion, easier in raising capital and a better tax management.