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.
Conclusion on the benefits & advantages of upgrading to Sdn. Bhd.
- Easier to get bank facilities with the basic requirement: company having good business track record.
- Owner's personal wealth is not at stake as Sdn. Bhd. is a limited liability business entity.
- Business's image upgrading to a more corporate image & stand out among your competitors.
- 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.
- Solid establishment in management and operations through involvement by accountants, company secretary and auditors.