Sole Proprietorship In Malaysia

Registering a sole proprietorship in malaysia.

Sole proprietorship in malaysia. Business owned by two or more persons but not exceeding 20 persons. Sole proprietorship registration is the most common and simplest legal business structure option in malaysia. Sole proprietorships are high risk but high reward business structures. Sole proprietorships law in malaysia let s begin by defining what a sole proprietorship is it is basically a type of business in malaysia and that particular business is owned by a person.

Sole proprietorships in malaysia. Sole proprietorship is governed by companies commission of malaysia suruhanjaya syarikat malaysia and registration of businesses act 1956. A sole proprietorship is a business wholly owned by a single individual using personal name as. Companies commission of malaysia corporate responsibility agenda.

As such sole proprietorships also fall under their jurisdiction. The sole proprietorship is considered to be the simplest form of the business organization that has minimal legal requirements. Let s have a looks on the sole proprietorship malaysia. The ssm of malaysia enforces the companies act 2016.

Before registration process one must understand what a sole proprietorship malaysia actually means. As mentioned before the sole proprietorship is the most popular business structure in malaysia. Business wholly owned by a single individual using personal name as per his her identity card or trade name. This is because of the following laws set in place.

A sole trader is represented by the natural person who will carry business operations in his or her own name. A sole proprietorship in malaysia makes no difference between the natural person who owns it and the business sole proprietorships are pass through entities. Owners of sole proprietorship experience unlimited liability which means that if the business fails to survive or declares bankruptcy. Sole proprietorship are businesses in malaysia which are owned by just one individuals.

All profits and losses go directly to the business owner. An important aspect referring to the incorporation of a sole proprietorship here is that foreign persons are not allowed to incorporate this. A sole proprietorship must be registered with the companies commission malaysia the main institution where companies file for registration.