The differences between Sole Proprietor/ Partnerships/ Enterprise/ PLT vs Sdn. Bhd. (Company Incorporation)
Description: Sole Prop/ Partnership/Ent. Sdn. Bhd.
Start Up Cost RM 60 to apply license from SSM RM 2,100.00++ incorp fees
Business Start Date Immediately after registration from SSM 1 day after company incorp
Liability Partners/ Owners Company
Annual Maintenance Less than RM 100 per annum RM 70/monthly (CoSec)
Tax Planning Limited management Efficient
Bank Facility Application Owner’s business history Company’s business history
Ownership Partners/ Owners Shareholders
Management/ Control Partners/ Owners Directors
Income Tax Liability Partners/ Owners Company
Income Tax Form Form P (Partnerships)/ Form B (Sole P.) Form C
Statutory Audit No Yes (from RM 1,000/ per annum)
Required CoSec No Yes (Registered CoSec)
SSM Annual Return No Yes
Business Entities in M’sia in PDF Version: Type of Business Entities in Malaysia 26032020
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:
Manufacturing: Sales turnover not exceeding RM50 million OR full-time employees not exceeding 200 workers.
Services and other sectors: Sales turnover not exceeding RM20 million OR full-time employees not exceeding 75 workers.
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: