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.                                                                                                                                                                                       

chess-438444_960_720

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.