TYPES OF BUSINESS - page 1
Keywords: TYPES OF BUSINESS
By jming1988 on 01/05/2010
Level: Bachelor Honours Degree (BA, BEng, BSc etc)
Page Number: 1 of 4 pages: 1 2 3 4
2.1 SOLE PROPRIETORSHIP
Sole proprietorship is a type of business organization in Malaysia. Basically, the business is owned by a person. The business can be applied by only a Malaysia citizen and or a permanent resident. It is simplest organization in Malaysia with minimal legal requirements.
Advantages of sole proprietorship are that the proprietor can have a lot of satisfaction in working for you. Moreover, the proprietor does not need go through a lot of complicated acknowledgement from other parties as this is owned by only him. Also, this business can be started effortlessly with minimal capital requirements. As a result, he can receive all the profits. Typically, the business can be kept private. Proprietor can make decisions by his own. Normally, this business would retain own customers by having personal contact.
Disadvantages of sole proprietorship are that proprietor will have to bear infinite liability for any losses sustained by the business. The proprietor is responsible entirely for the debts of the business. Proprietor capability is limited since to be a successful owner you will need to obtain relevant advice from other experts. Additionally, the business will have insufficient capital to expand business as there is no partnership. A sole proprietor's main source of funds is generally the savings. Even credit obtained from suppliers may only be on a short-term basis.
Registration Procedure
1. Complete a name search form obtainable from the Companies Commission
of Malaysia (CCM) to ensure the name you choose for your business has not been used by other traders.
2. Upon approval, get a Form A from CCM
3. Complete the form
4. The form should be verified by either a Member of Parliament, or a lawyer ,
or a Commissioner of Oaths, or other professionals
5. Submit the form with a copy of your identification card
6. Pay a registration fee of RM60 if the name you chose bears the trade name
(e.g. Ahmad Enterprise) or RM30 if the name bears your given name (without the word "Enterprise")
2.2 PARTNERSHIP
A partnership is a legal business organization with two or more partners but not exceeding 20 persons. The business, a person forms a partnership with one or more person to carry out a business with to making earnings. A partnership business is also incorporated under the Business registration Act 1956 (Amendment 1978). In a partnership, partners agree to undertake a joint business and jointly own the business. In this form of business entity, partners carry out the business, share the capital, profits and losses. Every
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