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Registration of Business Entities - Coggle Diagram
Registration of Business Entities
4 Types of business entities that must be registered
Sole Proprietorship
Partnership
Limited Liability Partnership
Private Limited Companies
Sole Proprietorship
Benefits
low registration coast (RM60 + RM10 documentation)
Flexibility/ fewer regulatory requirements
Owner has full control & decision-making
Limitations
Difficult decision when problems are complex
Unlimited personal liability for debts, losses or violations
Limited capital/ funding sources
Partnership
Benefits
shared decision-making
business affairs private
More capital from partners
Limitations
Disagreements and disputes
Unlimited liability for business debts and potentially actions of other partners
Profits shared equally if no partnership agreement
Cooperative
Benefits
members/ directors/ managers? employees generally not liable for cooperative debts
Separate legal entity
Limitations
limited distribution of profits to members
must register under cooperative law and is supervised by Suruhanjaya Koperasi Malaysia (SKM)