Business
Entity may be classified into following three basic types:-
i) Business Firm
ii) Registered Company
iii) Limited Liability
Partnership (LLP)
i) Business Firm
There
are two types of business firm
a)
Sole proprietorship (one-person ownership)
a)
Partnership (more than one ownership)
-
Not legal entities and do not have legal status
ii) Registered Company
(Sdn Bhd)
A
company limited by shares is incorporated under the Companies Act 1965 (CA 65):
- A company having a share capital may be incorporated as a private company
(identified through the words ‘Sendirian Berhad’ or ‘Sdn. Bhd.’ appearing
together with the company’s name) or public company ‘Berhad’ or ‘Bhd’ appearing
together with the company’s name).
The
requirements to form a company are:
(i)
A minimum of two subscribers to the shares of the company (Section 14 CA);
(ii) A minimum of two directors (Section 122); and
(iii) A company secretary who can be either :
(ii) A minimum of two directors (Section 122); and
(iii) A company secretary who can be either :
An
individual who is a member of a professional body prescribes by the
Minister of Domestic Trade Cooperative and Consumerism; or
An
individual licensed by the Companies Commission of Malaysia (SSM)
Both
the director and company secretary shall have their principal or only place or
residence within Malaysia
iii) Limited Liability
Partnership (LLP)
Under
the Limited Liability Partnerships Act 2012 which combines the characteristics
of a company and a conventional partnership.
In
an LLP, all partners have a form of limited liability for each individual's
protection within the partnership, similar to that of the shareholders of a
corporation. However, unlike corporate shareholders, the partners have the
right to manage the business directly. An LLP also limits the personal
liability of a partner for the errors, omissions, incompetence, or negligence
of the LLP's employees or other agents.
Upon incorporation,
the company or business entities as abovementioned is advised to obtain the
required license/permit/approval from other relevant authorities prior to
carrying on any business in Malaysia
