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REGISTRATION OF BUSINESS ENTITIES, Limitations, Limitations, Limitations,…

- - - - • Profit: Owner has 100% control over all business profits earned.
      - • Registration: Easy process that can be completed by the owner.
      - • Low Cost: Registration fee is cheap—only RM60 (+RM10 for documentation).
      - • Management: Easy to manage since only one person makes decisions.
    - - • Capital Sources: Limited to owner's capability; cannot issue stocks.
      - • Unlimited Liability: Owner is personally responsible for all debts and losses.
      - • Lack of Continuity: Business ends if the owner dies or becomes incapacitated.
      - • Taxes: Owner is personally liable to pay self-employment taxes.
  - - - • Capital: More partners mean more money/funds.
      - • Responsibility: Shared knowledge, skills, and workload.
      - • Flexibility: Less legal regulation (no audited accounts needed for SSM).
      - • Decision-making: Shared views ensure better decisions.
      - • Business affairs: Transactions and details remain private
  - - - • Owners
        
        No limit on the total number of partners.
      - • Inexpensive
        
        Cheaper registration than a private limited company (RM500 fee).
      - • Separate Legal Identity
        
        Can own property, enter contracts, and sue/be sued in its own name.
      - • Ease of Compliance
        
        Simpler regulations; accounts do not need auditing but must be kept on premise.
      - Perpetual Succession
        
        Changes, resignation, or death of partners do not affect its existence.
  - - - • Easy Formation: Requires any ten adults to register an association.
      - • Open Membership: Anyone can join or leave at any time.
      - • Democratic Control: Members vote to elect their managing committee.
      - • Limited Liability: Liability is strictly limited to contributed capital.