Sole Prop, Partnerships, PLT versus Sdn. Bhd.

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

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:
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:

SME Definition