Differences between Sdn Bhd Company and Partnership / Sole-Proprietor

Partnership / Sole-Proprietor Vs Sdn Bhd Company

Sole Proprietorship / PartnershipSdn Bhd Company
LiabilityUnlimited. Your personal wealth may be affected & exposed to risksLimited. Your personal wealth will be protected
When can start busines8 – 10 days10 days (new company)
24 hours (shelf company)
Start up costsRM100+RM1,460 (new company)
RM2,500 (shelf company)
Annual maintenanceRM60+RM3,000++
Ability to obtain loanNot easy. Depends on owner’s personal capacity & wealthEasier. Depends on company cash flow, strategy and business prospects
Tax risk exposureHigh. Due to low level of financial & compliance requirementsLow. Better managed and regulated
Tax planning opportunitiesLimited. Tax on personal.Better tax planning as company is a separate legal entity. Tax on corporate.

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