| Laws & Regulations |
- Governed by Companies Act 2016
- Stricter regulations
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- Registration of Business Act 1956
- More freedom from regulations
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| Ownership & Management |
- Owned by up to 50 Shareholders & managed by Directors
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- 1 person (Sole Proprietorship)
- 2-20 business partners (Partnership)
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| Legal Liability |
- Company's liabilities separate from shareholders
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- Unlimited liability
- Owner personally responsible for company's liabilities)
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| Business Income & Personal Income |
- Directors - director's remuneration
- Shareholders - dividends
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- All profits earned will form part of your personal income
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| Tax reporting |
- Profits earned are taxed under corporate tax
- First RM600,000 (500,000) = 17% (20%) and subsequent balance = 24%
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- Profits earned are taxed together with your personal income
- Tax rate from 0% to 24% (where chargeable income exceeds RM100,000)
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| Annual Running Cost |
- High (Accounting, Auditing, Tax submission, Secretarial services, Annual Filing Fees)
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- Low (Business Renewal, Accounting, Tax submission)
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| Audit |
- Approved Auditors required
|
|
| Termination |
- Complex (striking off / winding up)
- Cost of RM10,000 & above to wind up company
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- Easily terminated via forms
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