{"id":7097,"date":"2024-10-25T06:57:39","date_gmt":"2024-10-25T06:57:39","guid":{"rendered":"https:\/\/fareezbiz.com\/crm\/?page_id=7097"},"modified":"2025-04-29T06:52:47","modified_gmt":"2025-04-29T06:52:47","slug":"type-of-business","status":"publish","type":"page","link":"https:\/\/fareezbiz.com\/crm\/legalizing-your-business\/type-of-business\/","title":{"rendered":"Type of Business"},"content":{"rendered":"\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-social-links has-small-icon-size has-icon-color is-style-default is-content-justification-left is-layout-flex wp-container-core-social-links-is-layout-b192c3d7 wp-block-social-links-is-layout-flex\"><li style=\"color:var(--ast-global-color-5)\" class=\"wp-social-link wp-social-link-facebook has-ast-global-color-5-color wp-block-social-link\"><a href=\"https:\/\/www.facebook.com\/fareezlaw\" class=\"wp-block-social-link-anchor\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M12 2C6.5 2 2 6.5 2 12c0 5 3.7 9.1 8.4 9.9v-7H7.9V12h2.5V9.8c0-2.5 1.5-3.9 3.8-3.9 1.1 0 2.2.2 2.2.2v2.5h-1.3c-1.2 0-1.6.8-1.6 1.6V12h2.8l-.4 2.9h-2.3v7C18.3 21.1 22 17 22 12c0-5.5-4.5-10-10-10z\"><\/path><\/svg><span class=\"wp-block-social-link-label screen-reader-text\">Facebook<\/span><\/a><\/li>\n\n<li style=\"color:var(--ast-global-color-5)\" class=\"wp-social-link wp-social-link-linkedin has-ast-global-color-5-color wp-block-social-link\"><a href=\"https:\/\/my.linkedin.com\/company\/fareezlaw\" class=\"wp-block-social-link-anchor\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M19.7,3H4.3C3.582,3,3,3.582,3,4.3v15.4C3,20.418,3.582,21,4.3,21h15.4c0.718,0,1.3-0.582,1.3-1.3V4.3 C21,3.582,20.418,3,19.7,3z M8.339,18.338H5.667v-8.59h2.672V18.338z M7.004,8.574c-0.857,0-1.549-0.694-1.549-1.548 c0-0.855,0.691-1.548,1.549-1.548c0.854,0,1.547,0.694,1.547,1.548C8.551,7.881,7.858,8.574,7.004,8.574z M18.339,18.338h-2.669 v-4.177c0-0.996-0.017-2.278-1.387-2.278c-1.389,0-1.601,1.086-1.601,2.206v4.249h-2.667v-8.59h2.559v1.174h0.037 c0.356-0.675,1.227-1.387,2.526-1.387c2.703,0,3.203,1.779,3.203,4.092V18.338z\"><\/path><\/svg><span class=\"wp-block-social-link-label screen-reader-text\">LinkedIn<\/span><\/a><\/li>\n\n<li style=\"color:var(--ast-global-color-5)\" class=\"wp-social-link wp-social-link-instagram has-ast-global-color-5-color wp-block-social-link\"><a href=\"https:\/\/www.instagram.com\/fareezlaw_\" class=\"wp-block-social-link-anchor\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M12,4.622c2.403,0,2.688,0.009,3.637,0.052c0.877,0.04,1.354,0.187,1.671,0.31c0.42,0.163,0.72,0.358,1.035,0.673 c0.315,0.315,0.51,0.615,0.673,1.035c0.123,0.317,0.27,0.794,0.31,1.671c0.043,0.949,0.052,1.234,0.052,3.637 s-0.009,2.688-0.052,3.637c-0.04,0.877-0.187,1.354-0.31,1.671c-0.163,0.42-0.358,0.72-0.673,1.035 c-0.315,0.315-0.615,0.51-1.035,0.673c-0.317,0.123-0.794,0.27-1.671,0.31c-0.949,0.043-1.233,0.052-3.637,0.052 s-2.688-0.009-3.637-0.052c-0.877-0.04-1.354-0.187-1.671-0.31c-0.42-0.163-0.72-0.358-1.035-0.673 c-0.315-0.315-0.51-0.615-0.673-1.035c-0.123-0.317-0.27-0.794-0.31-1.671C4.631,14.688,4.622,14.403,4.622,12 s0.009-2.688,0.052-3.637c0.04-0.877,0.187-1.354,0.31-1.671c0.163-0.42,0.358-0.72,0.673-1.035 c0.315-0.315,0.615-0.51,1.035-0.673c0.317-0.123,0.794-0.27,1.671-0.31C9.312,4.631,9.597,4.622,12,4.622 M12,3 C9.556,3,9.249,3.01,8.289,3.054C7.331,3.098,6.677,3.25,6.105,3.472C5.513,3.702,5.011,4.01,4.511,4.511 c-0.5,0.5-0.808,1.002-1.038,1.594C3.25,6.677,3.098,7.331,3.054,8.289C3.01,9.249,3,9.556,3,12c0,2.444,0.01,2.751,0.054,3.711 c0.044,0.958,0.196,1.612,0.418,2.185c0.23,0.592,0.538,1.094,1.038,1.594c0.5,0.5,1.002,0.808,1.594,1.038 c0.572,0.222,1.227,0.375,2.185,0.418C9.249,20.99,9.556,21,12,21s2.751-0.01,3.711-0.054c0.958-0.044,1.612-0.196,2.185-0.418 c0.592-0.23,1.094-0.538,1.594-1.038c0.5-0.5,0.808-1.002,1.038-1.594c0.222-0.572,0.375-1.227,0.418-2.185 C20.99,14.751,21,14.444,21,12s-0.01-2.751-0.054-3.711c-0.044-0.958-0.196-1.612-0.418-2.185c-0.23-0.592-0.538-1.094-1.038-1.594 c-0.5-0.5-1.002-0.808-1.594-1.038c-0.572-0.222-1.227-0.375-2.185-0.418C14.751,3.01,14.444,3,12,3L12,3z M12,7.378 c-2.552,0-4.622,2.069-4.622,4.622S9.448,16.622,12,16.622s4.622-2.069,4.622-4.622S14.552,7.378,12,7.378z M12,15 c-1.657,0-3-1.343-3-3s1.343-3,3-3s3,1.343,3,3S13.657,15,12,15z M16.804,6.116c-0.596,0-1.08,0.484-1.08,1.08 s0.484,1.08,1.08,1.08c0.596,0,1.08-0.484,1.08-1.08S17.401,6.116,16.804,6.116z\"><\/path><\/svg><span class=\"wp-block-social-link-label screen-reader-text\">Instagram<\/span><\/a><\/li><\/ul>\n\n\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"type-of-business\">Type of Business<\/h3>\n\n<h6 class=\"wp-block-heading has-text-align-center\" id=\"choose-type-of-your-business-in-malaysia\">Choose type of your business in Malaysia<\/h6>\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">In Malaysia, there are generally four different types of business structures to suit the nature of your business, namely:<\/p>\n\n\n\n<div class=\"section-wrapper\" data-id=\"mUEe93\"><section class=\"wp-block-gutenverse-section guten-element guten-section guten-mUEe93 layout-boxed align-stretch editorskit-no-tablet editorskit-no-mobile\"><div class=\"guten-container guten-column-gap-default\">\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-gX17d7\"><div class=\"guten-column-wrapper\" data-id=\"gX17d7\"><h6 class=\"wp-block-heading has-text-align-center\" id=\"sole-proprietorship\">Sole Proprietorship<\/h6><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-EMdJlo\"><div class=\"guten-column-wrapper\" data-id=\"EMdJlo\"><h6 class=\"wp-block-heading\" id=\"partnership\">Partnership<\/h6><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-WgCHpu\"><div class=\"guten-column-wrapper\" data-id=\"WgCHpu\"><h6 class=\"wp-block-heading has-text-align-center\" id=\"private-limited-company-sdn-bhd\">Private Limited Company (Sdn Bhd)<\/h6><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-KKZ2Ws\"><div class=\"guten-column-wrapper\" data-id=\"KKZ2Ws\"><h6 class=\"wp-block-heading has-text-align-center\" id=\"limited-liabilitypartnership-llp\">Limited Liability<br>Partnership (LLP)<\/h6><\/div><\/div>\n<\/div><\/section><\/div>\n\n\n\n<div class=\"section-wrapper\" data-id=\"ZTVtai\"><section class=\"wp-block-gutenverse-section guten-element guten-section guten-ZTVtai layout-boxed align-stretch editorskit-no-desktop\"><div class=\"guten-container guten-column-gap-default\">\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-6aZiDS\"><div class=\"guten-column-wrapper\" data-id=\"6aZiDS\"><h6 class=\"wp-block-heading has-text-align-center\" id=\"sole-proprietorship\">Sole Proprietorship<\/h6><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-mbyJAD\"><div class=\"guten-column-wrapper\" data-id=\"mbyJAD\"><h6 class=\"wp-block-heading\" id=\"partnership\">Partnership<\/h6><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-nGm90e\"><div class=\"guten-column-wrapper\" data-id=\"nGm90e\"><h6 class=\"wp-block-heading has-text-align-center\" id=\"private-limited-company-sdn-bhd\">Private Limited Company (Sdn Bhd)<\/h6><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutenverse-column guten-element guten-column guten-KrH8jX\"><div class=\"guten-column-wrapper\" data-id=\"KrH8jX\"><h6 class=\"wp-block-heading has-text-align-center\" id=\"limited-liability-partnership-llp\">Limited Liability Partnership (LLP)<\/h6><\/div><\/div>\n<\/div><\/section><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-f91475aa\" class=\"wp-block-themeisle-blocks-advanced-columns has-1-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-equal-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-f1ba55ca\" class=\"wp-block-themeisle-blocks-advanced-column\">\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"ticss-bcf5151f wp-block-paragraph\" style=\"font-size:15px\">The Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia or SSM) is a statutory body established to regulate companies and businesses in Peninsular Malaysia. SSM plays a critical role in ensuring compliance with relevant laws and regulations through rigorous enforcement and monitoring activities. In addition to its regulatory functions, SSM provides the public with access to comprehensive information on companies and businesses to promote transparency and accountability. It is important to note that in Sabah and Sarawak, the registration of sole proprietorships and partnerships falls under the jurisdiction of the respective local authorities and district offices.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2024\/10\/6685-1024x640.jpg\" alt=\"\" class=\"wp-image-7100\" style=\"width:395px;height:auto\" srcset=\"https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2024\/10\/6685-1024x640.jpg 1024w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2024\/10\/6685-300x188.jpg 300w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2024\/10\/6685-768x480.jpg 768w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2024\/10\/6685-1536x960.jpg 1536w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2024\/10\/6685-2048x1280.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-table is-style-stripes editorskit-no-mobile has-mobile-text-align-justify\" style=\"font-size:13px\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-center\" data-align=\"center\"><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Sole Proprietorship<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Partnership<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Private Limited Company<\/strong><br>(Sdn Bhd)<\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Limited Liability Partnership<\/strong><br>(LLP)<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">What is it?<\/td><td class=\"has-text-align-left\" data-align=\"left\">A business wholly owned by a single individual using a personal name or trade name<\/td><td class=\"has-text-align-left\" data-align=\"left\">Same as a sole proprietorship, except there is more than one owner<\/td><td class=\"has-text-align-left\" data-align=\"left\">A separate legal entity formed by several persons that can own property, draw contracts &amp; employ people. Cannot sell shares to the public<\/td><td class=\"has-text-align-left\" data-align=\"left\">A hybrid between a private limited company and a partnership<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Suitable For<\/td><td class=\"has-text-align-left\" data-align=\"left\">Micro and small businesses Most suitable for a one-person venture with no employees<\/td><td class=\"has-text-align-left\" data-align=\"left\">Most suitable for professional firms and ventures that do not seek to raise funds<\/td><td class=\"has-text-align-left\" data-align=\"left\">Most common form of entity in Malaysia. Suitable for SMEs<\/td><td class=\"has-text-align-left\" data-align=\"left\">Start-ups and small businesses<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Common Example<\/td><td class=\"has-text-align-left\" data-align=\"left\">Shopkeepers, hair salons, plumbers, art, Accounting firms, and craft shop etc.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Accounting firms, solicitor firms, etc.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Family-owned businesses, small engineering &amp; manufacturing firms etc<\/td><td class=\"has-text-align-left\" data-align=\"left\">Professional service business<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Liability<\/td><td class=\"has-text-align-left\" data-align=\"left\">Unlimited liability. This means if you cannot meet your debts, your creditors can go after your personal assets.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Unlimited liability. All partners are jointly liable for losses and failures<\/td><td class=\"has-text-align-left\" data-align=\"left\">Limited liability. If the company fails to meet its liabilities, creditors cannot seize owners&#8217; personal asset<\/td><td class=\"has-text-align-left\" data-align=\"left\">Protection of limited liability to its partners with flexibility of internal business regulation similar to a conventional partnership<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Estimated Cost<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM60 RM100++ (~RM30 yearly maintenance)<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM100++ (~RM30 yearly maintenance)<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM1,060++ (~RM2,500 yearly maintenance)<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM500++ (~RM200 yearly maintenance)<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Time For Registration<\/td><td class=\"has-text-align-left\" data-align=\"left\">1 hour at SSM counter<\/td><td class=\"has-text-align-left\" data-align=\"left\">1 hour at SSM counter<\/td><td class=\"has-text-align-left\" data-align=\"left\">7 working days<\/td><td class=\"has-text-align-left\" data-align=\"left\">4-7 working days<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Income Tax Compliance<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at partners personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Enjoy a preferential tax rate at 18% for the 1st RM500,000 chargeable income. Better tax planning and savings.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Treated like a Sdn. Bhd. with similar preferential tax treatment on 1st RM500.000 of chargeable income<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Business Continuity<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Company will still exist even after key owner has passed away.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Company will still exist even after key partners has passed away.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Financing Opportunities<\/td><td class=\"has-text-align-left\" data-align=\"left\">Not many options. Funding can be in the form of micro-financing or depends on the owners capacity and wealth<\/td><td class=\"has-text-align-left\" data-align=\"left\">Different partners may have different personal capacity &amp; wealth. Bankers may not accept such differences.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Easier and higher creditability for financing as company is perceived as more reliable and sustainable<\/td><td class=\"has-text-align-left\" data-align=\"left\">LP is still relatively new in Malaysia and may not be well understood by banks &amp; Government agencies.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Recommended For<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting minimal formalities, maximum flexibility, and not worried about personal liability.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting minimal formalities, maximum flexibility, and not worried about personal liability.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting the liability protection of a company with less corporate formalities, and simplicity of pass through taxation of income<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting the liability<br>protection of a company and intends to run a small scale business.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Our Views<\/td><td class=\"has-text-align-left\" data-align=\"left\">Of course, this is the cheapest, simplest &amp; easiest way to start a business. However, this type of entity is only suitable if you plan to remain small. Overtime you need to transform your business into Sdn. Bhd. after generating a stable income.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Again, you need to transform your business into Sdn. Bhd. for growth and as mentioned earlier, this form is more suitable for professional firms<\/td><td class=\"has-text-align-left\" data-align=\"left\">The best choice for SMEs as<br>customers prefer to trade with Sdn Bhd. due to higher commitments &amp; responsibilities in operation.<\/td><td class=\"has-text-align-left\" data-align=\"left\">LLP has lesser compliance<br>requirements and is therefore a more affordable business vehicle. However, the form is not sustainable once the scale of operations gets big and you need to infuse additional stakeholders<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-table is-style-regular editorskit-no-desktop editorskit-no-tablet has-mobile-text-align-justify\" style=\"font-size:9px\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-center\" data-align=\"center\"><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Sole Proprietorship<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Partnership<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Private Limited Company<\/strong><br>(Sdn Bhd)<\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Limited Liability Partnership<\/strong><br>(LLP)<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">What is it?<\/td><td class=\"has-text-align-left\" data-align=\"left\">A business wholly owned by a single individual using a personal name or trade name<\/td><td class=\"has-text-align-left\" data-align=\"left\">Same as a sole proprietorship, except there is more than one owner<\/td><td class=\"has-text-align-left\" data-align=\"left\">A separate legal entity formed by several persons that can own property, draw contracts &amp; employ people. Cannot sell shares to the public<\/td><td class=\"has-text-align-left\" data-align=\"left\">A hybrid between a private limited company and a partnership<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Suitable For<\/td><td class=\"has-text-align-left\" data-align=\"left\">Micro and small businesses Most suitable for a one-person venture with no employees<\/td><td class=\"has-text-align-left\" data-align=\"left\">Most suitable for professional firms and ventures that do not seek to raise funds<\/td><td class=\"has-text-align-left\" data-align=\"left\">Most common form of entity in Malaysia. Suitable for SMEs<\/td><td class=\"has-text-align-left\" data-align=\"left\">Start-ups and small businesses<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Common Example<\/td><td class=\"has-text-align-left\" data-align=\"left\">Shopkeepers, hair salons, plumbers, art, Accounting firms, and craft shop etc.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Accounting firms, solicitor firms, etc.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Family-owned businesses, small engineering &amp; manufacturing firms etc<\/td><td class=\"has-text-align-left\" data-align=\"left\">Professional service business<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Liability<\/td><td class=\"has-text-align-left\" data-align=\"left\">Unlimited liability. This means if you cannot meet your debts, your creditors can go after your personal assets.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Unlimited liability. All partners are jointly liable for losses and failures<\/td><td class=\"has-text-align-left\" data-align=\"left\">Limited liability. If the company fails to meet its liabilities, creditors cannot seize owners&#8217; personal asset<\/td><td class=\"has-text-align-left\" data-align=\"left\">Protection of limited liability to its partners with flexibility of internal business regulation similar to a conventional partnership<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Estimated Cost<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM60 RM100++ (~RM30 yearly maintenance)<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM100++ (~RM30 yearly maintenance)<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM1,060++ (~RM2,500 yearly maintenance)<\/td><td class=\"has-text-align-left\" data-align=\"left\">RM500++ (~RM200 yearly maintenance)<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Time For Registration<\/td><td class=\"has-text-align-left\" data-align=\"left\">1 hour at SSM counter<\/td><td class=\"has-text-align-left\" data-align=\"left\">1 hour at SSM counter<\/td><td class=\"has-text-align-left\" data-align=\"left\">7 working days<\/td><td class=\"has-text-align-left\" data-align=\"left\">4-7 working days<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Income Tax Compliance<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at partners personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Enjoy a preferential tax rate at 18% for the 1st RM500,000 chargeable income. Better tax planning and savings.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Treated like a Sdn. Bhd. with similar preferential tax treatment on 1st RM500.000 of chargeable income<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Business Continuity<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Profits taxed at personal level. Unfavourable as cannot enjoy the preferential tax rate given for small companies<\/td><td class=\"has-text-align-left\" data-align=\"left\">Company will still exist even after key owner has passed away.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Company will still exist even after key partners has passed away.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Financing Opportunities<\/td><td class=\"has-text-align-left\" data-align=\"left\">Not many options. Funding can be in the form of micro-financing or depends on the owners capacity and wealth<\/td><td class=\"has-text-align-left\" data-align=\"left\">Different partners may have different personal capacity &amp; wealth. Bankers may not accept such differences.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Easier and higher creditability for financing as company is perceived as more reliable and sustainable<\/td><td class=\"has-text-align-left\" data-align=\"left\">LP is still relatively new in Malaysia and may not be well understood by banks &amp; Government agencies.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Recommended For<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting minimal formalities, maximum flexibility, and not worried about personal liability.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting minimal formalities, maximum flexibility, and not worried about personal liability.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting the liability protection of a company with less corporate formalities, and simplicity of pass through taxation of income<\/td><td class=\"has-text-align-left\" data-align=\"left\">Owners wanting the liability<br>protection of a company and intends to run a small scale business.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Our Views<\/td><td class=\"has-text-align-left\" data-align=\"left\">Of course, this is the cheapest, simplest &amp; easiest way to start a business. However, this type of entity is only suitable if you plan to remain small. Overtime you need to transform your business into Sdn. Bhd. after generating a stable income.<\/td><td class=\"has-text-align-left\" data-align=\"left\">Again, you need to transform your business into Sdn. Bhd. for growth and as mentioned earlier, this form is more suitable for professional firms<\/td><td class=\"has-text-align-left\" data-align=\"left\">The best choice for SMEs as<br>customers prefer to trade with Sdn Bhd. due to higher commitments &amp; responsibilities in operation.<\/td><td class=\"has-text-align-left\" data-align=\"left\">LLP has lesser compliance<br>requirements and is therefore a more affordable business vehicle. However, the form is not sustainable once the scale of operations gets big and you need to infuse additional stakeholders<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-8a7ad11a\" class=\"wp-block-themeisle-blocks-advanced-columns has-2-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-equal-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-523fc4d8\" class=\"wp-block-themeisle-blocks-advanced-column\">\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/fareezbiz.com\/crm\/start-business\/business-plan-what-should-i-do\/\">Business plan<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-column-69ce331a\" class=\"wp-block-themeisle-blocks-advanced-column\">\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/fareezbiz.com\/crm\/legalizing-your-business\/easy-steps-to-register\/\">Register Business<\/a><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Make an appointment with&nbsp;<mark>Company Secretary<\/mark> or Our Lawyer for advice and consultation<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/fareezlaw.typeform.com\/to\/VCpHja#source=taxmalaysia\">contact us now<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Type of Business Choose type of your business in Malaysia In Malaysia, there are generally four different types of business 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