Please enable JavaScript.
Coggle requires JavaScript to display documents.
Business Entities and Classification of companies - Coggle Diagram
Business Entities and Classification of companies
Sole Proprietorship
Formed, managed and owned by one individual
Not a legal entity, no legal distinction between the owner
Owner liable for all business debt
use own resources and less regulated
To be register with Registrar under Registration of Business Act 1956
Partnership
-Arrangement between two or more persons
-Profits shall be shared among partner
Governed by the Partnership Act 1961
Minimum number of partnership is two persons and maximum number is 20 persons acording to Section 14(3) od Companies Act 1965
Registration:
-Peninsular Malaysia (Registration of Business Act 1956)
-Sarawak (Sarawak Cap.64 and Cap.33)
-Sabah (Trade Licensing Ordinance No.16 1948)
Limited Liability Partnership (LLP) - unlimited capacity
Company
An incorporated association (Separate legal entity)
Own personality and us separate from its members or officers
Company's legal existence is not effected even if there is a change of its members
Classification of company
Limited and Unlimited Companies
1.Company limited by shares
-can be private or public company, must have the words "Sendirian Berhad" or "Berhad"
2.Company limited by Guanrantee
-Members are not required to contribute to the assets of the company
-Formed for non-profit-making objectives
3. Company limited both by shares and guarantee
4. An unlimited company
-no limit is placed on the liability of its members
Public Company
-Listed in the Bursa Malaysia Securities Berhad
-raise capital by seeking funds from the public
-must hold AGM
Private Company
-limited by shares having not more than fifty shareholders
-given an option to hold an AGM
Exempt Private Company
-Exempted from prohibitions related to loans to director
Holding And Subsidairy Companies
-A corporation shall be deemed to be a wholly-owned subsidiary of another corporation or its nominee
Foreign Companies
-Register under CA 2016 in Malaysia, but having its incorporated stauts outside Malaysia
-Foreign companies must comply with Section 561-579 of Company Act 2016