Please enable JavaScript.
Coggle requires JavaScript to display documents.
BUSINESS ENTITIES IN MALAYSIA - Coggle Diagram
BUSINESS ENTITIES IN MALAYSIA
Introduction
responsibility to register if business for profit
Legalize busniss activities
Business registration managed by the Companies Comission Of Malaysia (SSM)
Sole proprietorship
1 owner
most popular and simplest in Malaysia
Benefit
Owner has 100% control of profit
Registering a sole propprietorship is easy and can be done by the owner
Capital is limited to the ability of the owner
Partnership
Owned by 2 or maximum 20 people
Professional business members could be up to 50 people.
Limited Liability Partnership (LLP)
Alternative business vehicle regulated
Combines the characteristics of a private limited company and conventional partnership
Legal personality seperate from partners
Private limited company
Registered as a company is allotted under Companies Act 1965
1 to a maximum of 50 individuals
Shareholders liability is limited to the amount of share own
Cooperative
Autonomous association
Minimum number of members in a primary cooperative is 100 people n Farmers' Cooperative - 50
Jointly owned and democratically controlled business
Benefit
Unlimited liability
share skills and abilities in managing a partnership
Benefit
no limit on the number of the owners that can be involved with the business
inexpensive to register LLP compared to private limited company (RM500 registration fee)
Benefit
Any private company can enjoy
Management is better compared to sole proprietorship and partnership
Benefit
Formation is very easy compared to a joint stock company
people with common interest can form a cooperative society