Should I start my business by registering an enterprise or a sdn bhd?

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We have always been asked by our clients when they visited to our office, “should I start my business by registering an enterprise or a sdn bhd?”

Now, ask yourself on the following questions before making any decision:

  1. How much capital do I need to have for my new business?
  2. How much sales I can generate for the first year?
  3. How much profit I can earn for the first year? 
  4. Do I need to hire any staff?
  5. Do I need to setup an office?
  6. Am I going to tender any project under the new company?
Case 1 
  1. I need RM30k to start my business
  2. I am looking for RM200,000 sales in first year
  3. I think I can get RM50,000 profit
  4. No, I will not hire any staff at the moment
  5. I will work from my home at the beginning
  6. No, I sell my service/product to end users

Advice: You can choose Enterprise (Sole Proprietor/Partnership)

Case 2

  1. I need RM100k to start my business
  2. I am looking for RM500,000 sales in first year
  3. I think I can get RM100,000 profit
  4. No, not at the moment but will hire staff when business grows
  5. I need to setup a proper office
  6. No, I sell my service/product to end users
Advice: You can consider to form a sdn bhd company for your new business.

(Image: Ambro / FreeDigitalPhotos.net)