Wanna find the wisdom of the many. For those who own business, do you register yours as Sole Proprietor or as Sdn. Bhd? I saw an add by BOSSBOLEH where it's easier to start your Sdn. Bhd. online and low commitment fee.

I have been running a side business using Sole Proprietor trade name for quite sometime now and over the last 2-3 years, business has been picking up and I think it's a matter of time I can go full time running it.

So I want to ask, any real benefit going Sdn. Bhd rather than continue on using my current Sole Proprietor business?

I am

1) Very comfortable at what I am now. I am looking to expand, but perhaps keeping it small due to the nature of my business niche. I am so far still one man show, not intending to hire any worker to keep my cost low ( and sleep well at night)

2) My business if more on consultation project kinda basis, so there is no need to have an actual office. I operate from home, and where there is a need I meet with potential clients on site.

I am no way a successful businessman, so looking at those who has "arrived" to point me the way.

if your revenue >500k annually

only consider Sdn Bhd

rule of thumb

Are you doing business or just self employed

if high risk kena saman. yes.

If you afraid of financial liabilities

Go for Sdn Bhd

Sdn Bhd is a separate legal entity

Its like a person

You can apply loan or purchase or invest under Sdn Bhd instead of your own name

If owe bank or other kompeni and you cannot pay need to bankrupt you are not personally liable for the debt

Unless got criminal breach of trust or you sign personal guarantee for the loans or debts la

Downside is you need to pay annually to maintain its existence

I think BossBoleh is a secretary service that help you do ssm filings, agm minutes, etc

So that should be easier now than before

If your running cost is high and have high risk of going bankrupt or gulung tikar, then go sdn bhd.

sole propriter i suppose its enterprise.
Positive: Low set up cost, maintenance etc.
Negative: Unlimited liability

sdn. bhd.
Positive: Limited liability ( learn from unker tony)
1.Company capital RM1, take RM10 project/loan,
2.Channel RM9.50 to another company/declare dividend,
3. Say no money pay back loan or complete project, declare bankruptcy
4. Profit.
5. Set up new company, repeat from step 1

Positive: Rather low set up cost
Negative: If one man show with low returns, the doc fees and accounting fees cost thousands.


If you doing consultancy project with a lot of legally binding paperwork, especially with MNC, go sdn bhd.
If they decided to sue you anytime soon, and you're under enterprise business, they can take your personal wealth as well.

Not there yet, but hope it helps

partnershit Ltd la. ada mother father kan?

limited liability no need audit no need company secretary ( appoint one of the partner run as officer (compliance officer.) ganti co Sec)

This post has been edited by tikaram: Feb 12 2022, 03:22 PM

u need to do your homework

sdn bhd needs a full time company secretary, and AGM submitted to ROS and bla bla bla

your company account must be audited and many many many more rules

if u work from home and is one man show, stay with sole prop

i hope u did convert your tax file to B and pay your taxes accordingly, both from salaried and business income

There are virtual secretary services now

BossBoleh is one of them

limited partnership sendiri appoint sendiri jadi officer ganti company sectrary.

Pre-pandemic I almost hit this number...

No longer that way la, take loan from bank they will ask director to give personal guarantee

So far I have no financial liability. I kept my business dealings fairly low risk, and pay off my suppliers in cash and kept my credits low. Perhaps that's why I get favourable cost from local suppliers and am able to compete with bigger boys in the field.

So I guess, there is no need for me to go for Sdn. Bhd. then.

yes i know. u still need to pay for the services, every month


LOL. not secretary that u can pick up anywhere at market one la... this is SSM registered ones la... got certification one... LOL

https://www.ssm.com.my/Pages/Licensed_Secre...ecretaries.aspx

I kept a simple in/out acc and file it under personal income bracket as other incomes. I believe I pay more tax than I should this way.

Otherwise, please be so kind to show me what to do. Some articles or tutorial that I can read up from?

Throw away sdn bhd buziness

Read your bottom half. Noted on that advice. Something that I never thought off.

Unless it's a requirement from your customers, no need sdn bhd. Waste money and effort to maintain. There are now hybrid ones where no need audit one. The limited liability is bs, unless you purposely use it to cheat. For honest biz like yourself it does nothing.

LOL. everyone believes they pay tax more than they should (i think i should pay for an axia every year, but LHDN thinks i should pay for a vios every year)

anyway, u can google many many places to teach

if u need to be spoon fed, i guess keeping it under sole prop is the best. just make sure you convert your tax filing to FORM B - not BE ya

sort your tax filing first. LHDN like to dig deep now