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[Registration of Business Entities in Malaysia - Coggle Diagram
[Registration of Business
Entities in Malaysia
Introduction and
Regularly Framework
Business Registration Purpose:
Legalize activities and
make profits
Companies Commission of Malaysia (SSM):
Under Ministry of Domestic Trade,
Consumer Affairs, Cooperative and Consumerism
Cooperative Commission of Malaysia (SKM)
(Regular Cooperation)
Business Entity
Types
Sole Proprietorship
Ownership: Solely owned, funded and
manage by one owner
Governing Law : Business Registration Act 1956
Partnership
Membership: 2 to 20 members ( up to 50 for professional)
Governing Law: Business Registration Act 1956
Limited liability Partnership (LLP)
Characteristics: Separate legal entity
with perpetual succession
Governing Law: Limited liability Partnership Act 2012
Private Limited Company
Membership: 1 director up to 50 members
Naming Suffix : Sendirian Berhad or Sdn Bhd
Governing Law: Companies Act 1965 and Companies Act 2016
Cooperative
Membership: Minimum 100 for primary, 50 for farmers
Governing Law: Cooperative laws supervised by SKM
Benefits and
Limitations
Sole Proprietorship Evaluation
Benefits: 100% profits control, low registration cost (RM60) and easy engagement
Limitations: Unlimited liability, capital limits, lack of continuity
Partnership Evaluation:
Benefits: Shared capital, shared responsibility, better decisions making
Limitations: Unlimited liability,risk of disagreement
Cooperative Evaluation
Benefits : Easy formation, open membership, limited liability, state assistance
Limitations : Limited capital, management problems, government dependence
Registration
Procedures
Registration Agencies: SSM and SKM
Official website: www.ssm.com.my and www.skm.com.my