Business Entity In Malaysia Case Study

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Types of Business Entities in Malaysia It is very easy to understand how the basics of setting up a business entity in Malaysia .There are three types of business entities in Malaysia, there are Sole Proprietorship (also known as Sole Trader), partnership and corporation (Chartered Accountants). Sole proprietorship does not have any special legal requirements to start the business. In sole proprietorship business entity is considered as a separated unit different with the owner. Sole Proprietorship(Sole Trader) Sole proprietorship business entity is owned by just one individual or sole owner. The business is managed by its owner because the size of company is small. In a sole proprietorship all profits, losses, assets and liabilities are…show more content…
Second is direct control of decision making, means if proprietor doing his business by sole-proprietorship, he can making decision directly, no need speed too much times to discuss with another people. Third is easy and inexpensive to form, a sole proprietorship is the simplest and least expensive business structure to establish. Costs are minimal, with legal costs limited to obtaining the necessary license or permits. Fourth is complete control, because you are the sole owner of the business, you have complete control over all decisions. You aren’t required to consult with anyone else when you need to make decisions or want to make changes. Lastly is easy tax preparation, your business is not taxed separately, so it’s easy to fulfill the tax reporting requirements for a sole proprietorship. The tax rates are also the lowest of the business…show more content…
Corporate is subject to Companies Act 1965.A corporate have a lot of owners. It is called shareholders. In corporation, shareholders are not personally liable for corporate acts. A corporation has a separate entity from its owner. Therefore, a company can buy, own or sell property by its own name. Corporations can be classified into 2 types. There are limited liability and unlimited liability. In a limited liability company(LLC), if the corporate goes bankrupt, the creditors do not need to repaid from the owners’ personal assets. In the other hands, for an unlimited liability company, the creditors must repaid from the personal assets of the amount available from the sale of company’s assets is insufficient to settle their

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