TYPES OF BUSINESS OWNERSHIP

QUESTIONS SOLE PRIVITE LIMITED PUBLIC LIMITED

PROPREATORSHOP PARTNERSHIP COMPANY COMPANY
What is? Sole proprietorship is a A partnership is Syarikat Syarikat is a business that is
type of business defined as a Berhad is an entity managed by directors
activity that is owned collaboration between legally registered with and owned by
and controlled entirely two or more individuals SSM and subject to shareholders.A public
by one individual only. to conduct business. the Companies Act limited company can
Individuals who run a They agreed to join 1965. Syarikat Berhad offer shares to the
sole proprietorship forces to run the is established by a public. A public
business are business based on group of individuals for limited company is
responsible for mutually agreed terms. the purpose of also listed on the
investing capital in the Through the sharing of carrying on business stock market and
business. capital, expertise, activities. essentially needs to
experience and be more open and
knowledge, each public about its
partner can be details than a private
combined to grow the company.
business.
Suitable for? Less Capital •Limited liability Small-to -medium It is an excellent
requirements partnership (LLP) business, such as an option for small and
•Lower Tax rates • General partnership independent retailer in medium-sized
•Independent (GP). a market town, is businesses who wish
operations •Organised • LLC partnership (also frequently involved. to raise the equity
structure •Lower known as a Shares are not traded capital from the
operational risk •Lower multimember LLC) on a stock exchange, general public.
Compliance •Limited partnership and a private limited
requirements (LP) company can have as
few as one member
and maximum 50.
Example of •A local grocery store •West Elm & • A plumber •Oil, gas,
business? • A local clothes store Casper • Hairdresser Information
•An artist •Spotify & Uber • Photographer technology, and
•Freelance Writer •Dr. Pepper & • Lawyer retail
•It consultant Bonne Belle. • Dentist •Electronics
•Freelance • Accountant •Bank and
graphic designer Insurance
Liability? In Sole proprietors The primary drawback The liability of the It helps in protecting
have unlimited liability of a partnership is that owners is limited to personal assets of the
and are legally all partners share the amount that they owners with limited
responsible for all losses, debt and risk, individually have liability protection. So
debts against the and are fully liable for contributed as an if there are any
business. Their the financial investment to the financial issues with
business and personal obligations of the company. There is a the company, the
assets are at risk. business. This means separation between assets of the director
creditors can seize any the owners and its are secured and
partner's personal assets. If the company could not be seized
assets if these fails to meet its by banks or
obligations are not liabilities, the creditors departments.
met. will not be able to go
after the owners'
assets.

Estimate Need to pay Need to pays annual SSM only charges A flat registration fee
registration annual fees as fees as follows: RM1010 for the of RM1,000 is
follows: •Trade name RM60 establishment fee payable to SSM for
cost?
•Trade name per year each application for
RM60 per year •Branches RM5 per the incorporation of a
•Personal name year each company
RM30 per year
•Branches RM5
per year each
Example of  Tailor shops  Uber & Spotify  Facebook  AMBANK
 Beauty saloons  Apple &  IKEA GROUP
existing
2
business/  Restaurants MasterCard  Cargill  Bank Rakyat
 Launderettes  Airbnb &  Mars.  MAYBANK
company? Berhad
 Mini market Flipboard  TD Bank
 BuzzFeed &  Brookfield
Best Friends Asset
Animal Society Management