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
