Differences between Sdn Bhd Company and Partnership / Sole-Proprietor

Partnership / Sole-Proprietor Vs Sdn Bhd Company

Sole Proprietorship / Partnership Sdn Bhd Company
Liability Unlimited. Your personal wealth may be affected & exposed to risks Limited. Your personal wealth will be protected
When can start busines 8 – 10 days 10 days (new company)
24 hours (shelf company)
Start up costs RM100+ RM1,460 (new company)
RM2,500 (shelf company)
Annual maintenance RM60+ RM3,000++
Ability to obtain loan Not easy. Depends on owner’s personal capacity & wealth Easier. Depends on company cash flow, strategy and business prospects
Tax risk exposure High. Due to low level of financial & compliance requirements Low. Better managed and regulated
Tax planning opportunities Limited. Tax on personal. Better tax planning as company is a separate legal entity. Tax on corporate.

Click here for more information about sole proprietor/partnership

Click here for more details about registering a Sdn Bhd Company



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