Just wondering if anyone has experience setting up your own company.
What is the difference between Trading (Enterprise) and Sdn Bhd. In terms of risk, in terms of tax... start up capital...

any sharing will be appreciated.

Trading is your own business IIRC. Your liability is unlimited and means involve your personal property and money.

Private Limited or LLC is a setup to limit your liability in the crisis of bankruptcy. It's subject to company tax too.

i setup mine compnay under my personal name

quite cheap...

when u click at this thread, u will have an ads above
look at them: readycompanies.com
there's useful information u need to differ between Enterprise and Sdn Bhd (LLC)

anyone have any idea how much it will cost to register and those sort of things?

RM 100+ bro

so let's say if start with Trading.. bcos it is going to be a small business, it can still be coverted to Sdn Bhd anytime right....

yes can be changed to Sdn Bhd later

To reg an enterprise company the fees is less than RM80

i think it will cost more to register and maintain a sdn bhd...
at least 5k right...

to register a sdm bhd u need at least rm2500, and yearly payment for company secretary around rm1k.

thanks for all your advice guys....
i think i will go for trading company first... then only convert to sdn bhd if really make money

if im not mistaken for SDN BHD the minimum paid capital is RM50k or RM100k... and maximum RM500k

meaning u need to have that amount of cash first in bank, then only can open a SDN BHD...

Im not sure about the amount but its definately much more than RM10k

and you need at least named 2 person as director...

You are very very much mistaken. Ever heard of RM2 companies?

The minimum paid up capital for a Sdn Bhd is RM2. Each director subscribes to 1 RM1 share each. Generally, people form a company as an RM2 company with *authorised* capital of RM100k, and then gradually pump money into it. The cost of setting up a Sdn Bhd company would vary depending on who you engage to set it up for you, but would be around the RM2200 figure.

This post has been edited by badawi_rocks: May 14 2006, 08:04 AM

That means it can be done as far as I have 5k in my hand... and get another person as a director

Yes you can. Every year, you have to pay auditor's fees. You also have to pay secretarial fees of about RM70 a month.

This post has been edited by badawi_rocks: May 14 2006, 08:06 AM

Then i dun get it, why are Enterprise or Sole Proprietor companies so much cheaper..?

Don't they have to pay for auditing and secretarial services as well..?

u can do it yourself. sdn bhd if not mistaken need certified accountant to sign and stamp

trading, or enterprise is a sole proprietor or partnership business. either a one man operation or partners from 2 - 50 ppl. features: no need for appointed certified accountant, no need for subscribed company secretary. easy to setup, less paperwork required, cheap to setup (RM100) the owners/partners are wholly responsible for the full limit of the liabilities. business and owner are one entity. no separate account, business income is taxable thru owner's/partner's personal tax return.

Sdn Bhd is a limited liability company, where business and shareholders are different entities. ownership is calculated based on number or percentage of shares held. number of shareholders is unlimited, but there must be at least one executive director. liabilities is only limited to the portion of equities held. need to have appointed certified accountant/auditor, must have a subscribed company secretary (which charge monthly/annual fees). best be setup thru these company secretaries. requires tonnes of paperwork and documentation. each year accounts have to be audited and certified by auditor and submitted to company commission, and taxes will be charged based on the alleged performance from the said audit. easier to buy ready made sdn bhd from company secretaries rather than setup one from scratch. cost normally ranging from RM 1.8k to RM3k. most co secretaries already have ready made shelf companies of default/generic names, so you just buy off the shelf and they'll help you change the name to one of your own choice, provided that its not already taken up. can do namecheck online on company commission's website.

trading/enterprise best suited for small businesses/home businesses, simple setup, capalang, fly by night business or such. as far as doing business, most ppl are more comfortable dealing with sdn bhd and feels that sdn bhd is more credible.

more or less.... right from the top of my head....

now that u have your company, need financing?

This post has been edited by alqa: May 14 2006, 07:58 PM

I noticed that there are so many threads like this one...enquiring about formation of companies and setting up of businesses. Every now and then...some forumers will ask these similar questions.

I suggest maybe the mod can pin one such thread and all forumers interested can post questions there...and for future references too.

Just a suggestion...

good suggestion