What is the differences between Sdn Bhd and Sole-Proprietorship / partnership in Malaysia

Characteristically, there are major differences

Sdn Bhd (Private Limited Company) Sole Proprietorship / Partnership
Personal Liability Limited.

Personal assets & wealth are protected.

You can take greater risks to gear up the growth of your business.


Your personal assets & wealth will be jeopardized due to risks exposed in your business.

Time to start your business Immediately for Shelf Company

10 days for New Company

2 days if you register the business yourself

8-10 days if you engage professional firm to register the business.

Registration cost RM1,460 for registration of new company

RM2,300 for new shelf company

RM400 for sole proprietorship

RM600 for partnership (depends on number of partners)

Continuity Ownership transferable to spouse and second generation or saleable to any parties for a price

Even the major owner (shareholder) has passed away, the business will not be affected legally.

Owner dies, business will cease operation immediately.

Once any one of the partner deceased, the partnership will be considered dissolved.

Anything happen to the owner or partner, the business will be legally considered ceased operations immediately, as the owner is company and company is owner.