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?

another question related.  If the debt does not follow the director... then people would open company.... take loan or get loan by using the company.. Then that company declare bancrupt... then how huh...

yearly accounting or auditing that one how..? what's there to be done..? who should do it or can do it for you..?

since the owner n the company r 2 separate entity, if the co is closing down n after sell off everything still have debts, then how?

another question related.  If the debt does not follow the director... then people would open company.... take loan or get loan by using the company.. Then that company declare bancrupt... then how huh...

when you apply for a loan, the participating organization will perform a check on your compnay and the shareholders. they would perform a credit report check. if you credit report is healthy then they will approve the loan.

if your company is "predicted"  to not capable of returning, then they would obviously reject the loan application.

if things are like what you said, the world are gonna get screwed up badly.

Hi everyone , i also hav some question in my mind which need u ppl help me out...  now i feel like wan to open up a online sales website... and i m selling toys those kind of stuff... first question i wan to ask is

1. What do i need ?
2. Register wat kind of company ?? How much

thanks hope u ppl who hav experiance can help me out

online sales require domain name registration... or not.... web hosting and online pyment, unles u want to use maybank2u type of bank in first, send confirmation, verify and then ship the stuff later.

capital shud be small for setting up the website and domain registration, even smaller if u can design and create your own Website. as for the cost for web hosting, design and online payment system, pls ask the loads of gurus lingiering on this lowyat.net.

as for the company, such a simple setup doesnt need a sdn bhd, u can just set it up privately without a company also can.  have to look at your overall budget and your proposed business plan.

Then what is the diff between Sdn Bhd and Bhd ?

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

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.

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.

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..?

by far the best informative one I've read thus far. rclxms.gif

but i got a continuing question regarding the enterprise.

yearly accounting or auditing that one how..? what's there to be done..? who should do it or can do it for you..?

I got question: Sdn Bhd, since the owner n the company r 2 separate entity, if the co is closing down n after sell off everything still have debts, then how?

another question related.  If the debt does not follow the director... then people would open company.... take loan or get loan by using the company.. Then that company declare bancrupt... then how huh...

when you apply for a loan, the participating organization will perform a check on your compnay and the shareholders. they would perform a credit report check. if you credit report is healthy then they will approve the loan.

if your company is "predicted"  to not capable of returning, then they would obviously reject the loan application.

if things are like what you said, the world are gonna get screwed up badly.

Actually dude what kind of business are you in? Maybe if we know what your forte is in then you'd have a chance of getting a good answer.....

Like myself I'm doing creative stuff, graphic design / DJing / music production / events management... I did set up an enterprise but it was too hard to get business and work done o my own... So eventually I started a Sdn. Bhd. with two other partners.

PAVI - A sdn. bhd. needs a minimum of 2 shareholders and cannot be publicly listed... which means that the public cannot buy your shares in the share market.
A berhad however can be listed in the stock exchange but needs something like 10 partners... not sure excactly how many.... If you have a business that is generating 'that much money' and is a good service/product that the public might consider investing in, then berhad is the way to go. hope that helps.

Pavi.... will answer that some other time, in mid discussion with a client in a starbuck now.

Jackygwh.... just register an enterprise / trading, scan your biz registration cert and email to them. open a bank account under your business. will advice latter.