The differences between Sole Proprietor/ Partnerships/ Enterprise vs Sdn. Bhd. (Company Incorporation

Different:                            Sole Prop/ Partnership/Ent.                               Sdn. Bhd.

Start Up Cost                     RM 60 to apply license from SSM.                     RM 2,100 incorp fees.

Business Start Date          Immediately after registration from SSM         3 days after company incorp

Liability                               Unlimited liability.                                                 Limited.                                                                                                                             

Annual Maintenance        RM 60- RM 80 per year of licensing fees         RM 60/month:CoSec Fees  

Tax Planning                      Limited management                                           Efficient tax management.                                                                                                                                  

Bank Facility Application  Challenging as it's depends on owner.             Easy as it's different entity.                                                                                                                                                                                       


The next move in business is tricky unless you know the pros & cons.

Conclusion on the benefits & advantages of upgrading to Sdn. Bhd.

  1. Easier to get bank facilities with the basic requirement: company having good business track record.
  2. Owner's personal wealth is not at stake as Sdn. Bhd. is a limited liability business entity.
  3. Business's image upgrading to a more corporate image & stand out among your competitors.
  4. Meeting the basic requirement of getting bigger projects as Sdn. Bhd. has Form 24 which is showing the paid-up capital which ultimately creating confidence to your clients.
  5. Solid establishment in management and operations through involvement by accountants, company secretary and auditors.