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

good suggestion

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

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.

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.

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.

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.

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

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