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Business Entities in Malaysia - Coggle Diagram
Business Entities in Malaysia
Sole Proprietorship
Formed, managed and owned by one individual with no distinction between the business and the owner
2 types
Unlimited liabilities
Owner should be the liable for all the business debts
Unincorporated
Not a legal entity, no legal distinction between owner and business
Registration should under Business Act 1956 within 30 days of its commencements
Partnership
Section 3(1) "The relation which subsist between persons carrying on a business in a common with a view of profit"
According to S.14(3) of Companies Act 1965, minimum is 2 persons, and maximum is 20 persons.
Limited Liability Partnership
An alternative business vehicle regulated under the LLP Act 2012 which combines the characteristic of a company and a conventional partnership.
Company
Section 2 of Companies Act "company as company incorporated under the Companies Act 2016".
Perceptual existence : Its legal existence is not effected even if there is a change of its members of officers
Limited Partnership
General Partner
Take part in management of firms but not limited partners.
Limited Partner
Have limited liability in contributing in business debts. Once limited partners become involved in management of a firm, they lose their limited liability shield and become liable as general partners.
Available only in Labuan