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

i can prepare my own resolutions n sign off

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

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.

basically you need to hire auditor/accountant or just use the appointed auditor, they'll check all your books, create an audited accounts of all your business/financial transaction.... they'll charge a fee of course .

that's where the (at least one) executive director comes in... he/she have to carry the shit

lotsa ppl are doing that oredi... doesnt have to be sdn bhd, even Enterprise also got so many defaulters.... that's why the corporate loan application involves lots of documentation, and hassle, to ensure that the directors and shareholders are kosher. furthermore, financial institutions will require 3 years audited accoutns, plus statement of tax returns.... and nowadays, they also impose that the director/directors give personal guarantee some more!

well said... the financial institutions are savvy on all these cons already. too bad for some of you

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.

yea i m clear bout wat i need for the web... but i m not clear bout real life... i need business reg no in order to get stock from supplier in other country... they wont supply to u if u are not doing a business

Then what is the diff between Sdn Bhd and Bhd ?

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.

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.

Just to confirm. Isn't that 'Enterprise', 'Business Consulting (those who are able to produce degree certs and above can apply)', 'Business Management & Services' are just a name for sole proprietorship? I'm not too sure about Trading.

From what I know, sole proprietorship's accounts need not be audited.

How about Incorporated, Corporation, Holdings, International?

Lesser than that. 2500 can does everything in proper.

Yes, secretary company fees is the payment to clear your headache acting
like panadol.

2 directors or more, you can have 500 to open up a S/B co.

That's right, any tom d*** and harry can open up a S/B co with as little as RM2.


S/B, every year you must do auditing on your accounts, get company sec to do for you.

Enterprise company, everything is at you own, but you must renew your business license every year. for S/B, you dont have to renew yearly.

Accounting and auditing is different things when you run your business.

Accounting consists of those typical debit/credit entries of transaction for your daily business.

Auditing is to audit your whole year accounts transaction when the time come.

To Audit your accounts, hire auditors from accounting firms.
price range from 1K to many K. depends how big is your transaction.

Accounting, you can do it yourself, just get a accounting software and start learning.
if not, hire a part timer to do it for you... price range from 200 to 1k.

after close, sell off everything, got debts? either you leave it and go hide yourself
or go to your sec.company to wind up your company.

Apply loan from company, of course one of the directors must take sole responsibility of it. even if you windup your company and declare unable to payback loans to bankers, there is a catch after all. facing legal questions.

Enterprise or S/B, its just a 'branded' name that appears to some people
who really fancy it.

some people dont like to deal with enterprises, its sounds cheap the name.

some people like to deal with S/B company, got standard.

Bhd co, like nickyc said, if your company able to generate at least 45 millions above, then you can start consider get your company listed to BHD.

wao... we really have a lot of experts in LYN huh....

Wrong Post due to didn't read the first page

This post has been edited by firstDraggir: May 31 2006, 08:49 AM

i think so too........ get a trading license.... open a account... tats it rite ?

Waa nice to see more ppl have come to provide their valuable knowledge and share their experience

Sdn Berhad need to meet lotsa legal requirement before they can "go public" and become a Berhad. aside form the asset and income requirements, there are legal requirements and must pass the scrutiny of the Securities Commission. Berhad means you can raise fund from the general public by offering them to purchase your shares.

as have been said...Enterprise, Sdn Bhd or Berhad is just a matter of legal formation. since Enterprise is a sole proprietorship (one man show-normally) ppl tend to have reservations when dealing with them. Whereas Sdn Bhd, a private limited vompany requires more no of shareholder, holds up better against law suits. Berhad is a public listed comany, is considered the most secure, even when thier employees want to apply loan, nobody question a payslip from a Berhad company.

small business go for Enterprise first, especially when you're just selling goods on retail basis. if you're providing service or selling your expertise, better be a Sdn Bhd, more credible.

Is it true if I had a Sdn Bhd and any legal disputes were to be brought up, I'll only be sued for all assets of my company and not personal assets like my house or my car and etc..?

Actually, could I get a rough idea of what kinda assets that could be liquidated or be claimed when bankrupt later or if someone sued until there isn't money left? Thanks.

Not really. There are provisions relating to personal liability for directors even in a Sdn Bhd. This usually occurs where there is bad faith or fraud on the part of the director.

that mean if every single thing u buy if u're name it under your company name u'll escape from paying too much for personal income tax right?..one of the loop-hole we can find

I was reading quite a few articles provided at ReadyCompanies.com (didn't like the idea of the Registered Office being there though) and I noticed for a Sdb Bhd the expenses goes something like this.

Fees paid annually:
- company tax
- auditing
- company license

Fees paid monthly:
- secretarial fees

I know I'm missing a few others, anyone can help me out here? Thanks.

In case if you wanna know about bankruptcy issue, you can click
on this thread below i started at real word issue section.

http://forum.lowyat.net/index.php?showtopic=292951



Doesnt matter if HERO VENTURES is located at sentul or whereever.
in fact, i get my company done through them couple of years ago.

yes, that's right the monthly fees you have to pay, but normally they will bill you
yearly in that, costing about RM800 yearly.

the annually fees which covers audit, taxes, company license about
RM1200 to RM2K above.

dont worry, they got despatch boy to deliver documents to you, so you dont
have to walk in there everytime you require them to do something. just call them.

somehow, you are right about this. get anything assets, cars under company name registration. everything borne by company.

you buy cars with company profits can lessen your income tax already.

Any experts can answer my question before? Plus is it a must that a sole proprietor have to submit their accounts? A sole proprietor need to register for a separate income tax?

usually sole proprietor put their name like blabla enterprise or blabla trading depending nature of business. they dont need to be audited.

Corporation is another term of company
Incorporated(Inc.) is american name for public limited company(malaysia used berhad)
Holding mean company that owns a majority of shares in another company
Sdn. Bhd(Ltd.) is private owner corporation
International (Intl.) is a international company that have overlapping ownerships and have multiple branches and lines in different regions
Conglomerate company is where a large company with variety of business not related to one another (i.e: Sime Darby)


A sole proprietor only need to pay personal income tax as their business and person who run the business is the same entity which the more he/she earn profit from his business the more he/she must pay for income tax

I know that sole proprietor doesn't need their accounts to be audited, but are they required to hand in the accounts?

So you're saying we don't have to apply for 2nd income tax for the sole proprietor business?

no need to submit tax for your sole company.
my friend runs sole company and went to LHDN to apply for tax file, and guess what, he became a laughing stock.... lol

you yourself must submit tax in personal.

Got it. How about non-audited accounts? Let's say we are earning money from sole proprietor, don't we have to let SSM/whichever relevant authority know about it? Or we don't have to let them know?

When a Sdn. Bhd. needs to close down, they'll have to post on newspapers and many other procedures. What about sole proprietor then? What needs to be done to convert a sole proprietor to Sdn. Bhd.?

This post has been edited by AnimeAsia: Jun 1 2006, 05:41 PM

Non audited accounts, in fact from what i see, hundred or many of sole companies
only get their accounts book done properly, dont have to audit.

but say, if your business gross one million above, you better convert to s/b.

when s/b close down, you can see the ads in paper everyday after court judgment.

process can take up to 6 months when you apply for company wind-up.

get any secretary company to do or legal company to do.

for conversion, as usual, go to secretary company...not much hassle, just sign up some papers and pay them.

so, to start an enterprise where can we do our registraration? who we can inquire the correct information?

There are plenty of it by flipping through yellow pages directory.

if not, just go ahead to The Mall, next to PWTC, cant remember which floor...2nd or 3rd or 4th floor. there are plenty of agency there...not to mention, the touts are there too.

u can find accountant to do it for u....and they will do it for u from beginning until d end.....

everything is included....

So can anyone specify the possible figure in detail for setting up enterprise...
for example:
1. registration fee - ????
2. Annual setup fee - ?????
3. Accountant's fee - ????
4. any other type of fee - ????

I would be interested to know also, how to setup a website to sell services...legally not the illegal type..thanx

* offtopic *

Determine the type of service/product you want to sell, visit the http://forum.lowyat.net/index.php?showforum=119 thread and then find someone suitable for the job and your budget.

If you need more advice, just PM me and I'll pass you my MSN to consult you.

it's depend on which accountanncy firm u get loh...
small firm they wont charge u much...
1. registration fee - about 1000+ something.. i thinks..coz there are many procedure u need to perform, like company name search, to find out whether this name is available for register o not... and anymore...
2. Annual setup fee - this shd be company secretarial fees... it's also depending on ur company size...
3. Accountant's fee - shd be consultant fee kua...depending on the accountant...
4. any other type of fee - no clear...

correct me if i'm wrong.

1: RM150 will does all for sole co. / RM2300-2500 for new sdn bhd co.

2: Renewal fee of RM25 required for sole co. no fees for sdn bhd.

3: Accountants fee - depends on your company transaction of business.
just hire a part time account fella to file up your accounts.

4: auditors fees for sdn bhd. secretarial fees. range from RM1000 to 20K, 30K.



i believe those question and answers are provided in previous postings.

hi all, I finally got my enterprise registered.
Quite easy, went there, fill up form PNA 42 and 1A.
queue and check for company name availablilty. then have the form sumpah by the suruhan jaya sumpah.

Paid RM 10 for Sumpah and RM70 for the registration.
Submitted the form and now I have to wait for 2 weeks for the process.
going back there on 20 Jun to get my company number.

If you have any problem doing this alone, there are plenty of people around who is willing to do it for a fee. Price range from RM 20 to RM60.
(this is Penang price, not sure bout KL)

kudos to you.... as a small business advisor i met lots of people who voice thier dissappointment in thier day job and ask all sort of advises to setup their own business, but nobody ever made the final gesture. here's a person who actually went out and did it!

Good luck in your undertakings.

thanks...
hope this baby step will bring me to another level...

now started.. now i know that there are more plannings that need to be done... lots more than what i initially thought

Pardon my ignorance, but let's say a group of friends want to set up a cafe or a comic shop. The business is too small to be a Sdn Bhd, so it's an enterprise/partnership. Is it possible to be a limited liability partner in such an enterprise or is every partner legally liable?

SDN BHD not public listed while BHD is public listed! ^^

short answer is no.... that's why sole proprietor or partnership business are usually referred as unlimited liabilities business... becos legally, there are no boundaries between your personal and your business property. Your liabilities are unlimited. Failures in your business may mean a loss of your personal property.

why dont u just invest RM2500++ and get a Sdn Bhd registered, or buy one off the shelf. easier on the liabilities.... and taxation too.

This post has been edited by alqa: Jun 23 2006, 12:20 PM

Thanks for the advice, alqa.

anyone can advice, what sort of licenses to obtain from authorities to open small-scale training center, teaching Microsoft software?
How competitive is training service right now?
TQ

a registered business (sole prop or sdn bhd) with business premise license from local municipal authority. but best to get some kind of approval / appointment from Microsoft for MSCE, etc. to maximise your potential, you might want to register with Human Resource Ministry under thier Human Resources Development Fund.


competitiveness.... well suffice to say that nowadays, everybody and thier mother is a trainer. but depends on location and market share.

This post has been edited by alqa: Jun 26 2006, 03:22 PM