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Difference between Malaysia Company, General Partnership and Sole Proprietorship

Update Date:2015-11-12 15:46:12 Source:Tannet (Malaysia) Sdn Bhd Views:1781

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The most common forms of business entity in Malaysia are:

1. Company (Sdn Bhd)

2. General Partnership

3. Sole Proprietorship


 

Company

General Partnership

Sole Proprietorship

Entity Name

Company name ends with the word “Sdn Bhd” or “Bhd”

Choice of Trade Name subjected to SSM approval

Choice of Trade Name subjected to SSM approval

Capital Contribution

Share capital

Partners contribution

Own contribution

Owner(s) of the business

Company(members / shareholders own ‘shares’ in the company that give them certain rights in relation to the Company)

Partners

Sole Proprietor

Legal Status

Separate legal entity

Not a separate legal entity

Not a separate legal entity

Party who is liable for debts of the business

Company

Partners

Sole Proprietor

Party who is responsible for management of business

Board of Directors

Partners

Sole Proprietor

Personal liability

No personal liability of individual director or shareholder Liabilities borne by the directors or shareholders are to the extent of unpaid shares only

Unlimited liability(jointly and severally liable with the partnership) which can extend to personal assets of the partners

Unlimited liability which can extend to personal assets of the sole proprietor

No. Of Shareholders/Partners

A minimum of 1 for Sdn Bhd and a maximum of 50 in private company. 

A minimum of 2 for Bhd.

2 to 20 partners(Except for partnerships for professional practice with no maximum limit)

Sole proprietor only

Company Secretary / Compliance officer

Qualified Company Secretary

N/A

N/A

 

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