Sole Prop, Partnerships, PLT versus Sdn. Bhd.

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

DescriptionSole Prop/ Partnership/Ent. Sdn. Bhd.
Start Up Cost   RM 60 to apply license from SSM RM 2,162.40 incorp fees
Business Start DateImmediately after registration from SSM1 day after company incorp
Liability Partner/ OwnersCompany
Annual MaintenanceLess then RM 100 per annumRM 70 monthly CoSec fee
Tax PlanningLimited managementEfficient
Bank Facility ApplicationOwner’s business historyCompany’s business history
OwnershipPartners/ OwnersShareholders
Management/ ControlPartners/ OwnersDirectors
Income Tax LiabilityPartners/ OwnersCompany
Income Tax FormForm P (Partnership/ Form B (Sole P.)Form C
Statutory AuditNoYes (from RM 1,000 per annum)
Required CoSec NoYes (Registered CoSec)
SSM Annual ReturnNoYes

 

 

 

 

 

 

 

 

 

 

 

Business Entities in M’sia in PDF Version: Type of Business Entities in Malaysia 26032020

2. SME Definition:

Given that there have been many developments in the economy since 2005 such as price inflation, structural changes and change in business trends, a review of the definition was undertaken in 2013 and an SME definition was endorsed at the 14th NSDC Meeting in July 2013.

The definition was simplified as follows:
a. Manufacturing: Sales turnover not exceeding RM50 million OR full-time employees not exceeding 200 workers.
b. Services and other sectors: Sales turnover not exceeding RM20 million OR full-time employees not exceeding 75 workers.
c. A business can qualify as an SME if it meets either one of the two specified criteria, namely sales turnover or full-time employees, whichever is lower.

Detailed definition by category namely micro, small and medium is as follows:

 

SME DefinitionReference: http://www.smeinfo.com.my/official-national-sme-definition

Categories

Your business should happen?

A serious note to entrepreneurs in asking oneself; should my business happen? 1. The business’s cause? Questions: a. What are