This article for a businessman who wants to register a business in Malaysia firstly. Please read carefully!
People always ask me the difference between Enterprise and Sdn Bhd and what is best. It’s hard for me to say which is best, because both are more and less hers.
Here is a summary of Enterprise VS Sdn Bhd, you decide which one is the best. Keep reading:
1. The concept
The enterprise is either a sole proprietor or a shareholder partnership as a BUSINESS.
Sdn Bhd is calling the Company. So Enterprise is not a company. It’s a Business I repeat twice.
Enterprise adopts the Business Registration Act 1956
Sdn Bhd adopted the Companies Act 2016, the first time it adopted the Companies Act 1965. Now to show how smart you are, refer to the new Act. The old law has never been used again.
3. Registration Cost – Enterprise
Your enterprise will have to pay RM60 if you want to register a business in the name of business. Example Azrul Kacak Resources. You can also list businesses such as names near IC for RM30.
There is an additional RM10 for print business information.
3. Registration Fees – Sdn
Sdn Bhd you want to list him to pay RM2,500 – RM3,500 to the company secretary. They will help you register the company. This is just one cost. There’s no need to pay every year like Enterprise.
The company secretary is not a yeoman.
4. Number of Members
If Enterprise is the sole proprietor, one is the expert. If minimum sharing type of 2 people up to 50 max.
Sdn Bhd must have at least one Director and one Shareholder. Follow the new Act. It used to be about two people.
Enterprise cannot be heir to children, wives, grandchildren, great-grandchildren. Here is the weakness of Enterprise. I think it’s ready. Owner dies business is required to close.
Sdn Bhd may be inherited if the director or shareholder dies. No matter.
6. Limited Liability
Enterprise is unlimited. All burdens such as debt, for example, are borne by the owner. Penalties, even summonses on the owner.
Limited Sdn. It is a separate entity type, the burden on the company does not affect the directors and shareholders.
7. Audit & Company Secretary
Enterprise doesn’t need to.
Sdn Bhd must have both. So when necessary, it is an additional cost to Sdn Bhd for the services of the Auditor and Company Secretary.
There is only one type of Sdn Bhd that does not need to be audited, so let’s talk about it next time.
8. Tax Rates
Enterprise tax rates are like individual taxes, tax is calculated under the name of the individual at 0% – 28%
Sdn Bhd at 18% taxable income of RM500K and share capital of 2.5 Million. If the share capital is over 2.5 Million RM500K then at 24%.
Return to Enterprise owner in profit. It can be a profit sharing if the concept of sharing.
Sdn Bhd is a dividend return to shareholders.
10. Donation of Capital
Enterprise relies on agreements when sharing partnerships. If the sole owner has no limit. Be happy with your heart.
Sdn Bhd through stock subscription. You usually have to ask the company secretary to help you figure out how much you want to increase.
Just 10 of the basics difference between Enterprise Vs Sdn Bhd you should know. Now, you make a better decision. Everyone has their own plans.
This list is important for businesses, otherwise, you make the business illegal. Remember to make that sin illegal!
Note: for more information and difference between an Sdn Bhd company and enterprise click here.