importance various forms of business entity for the various types of business activities to the entrepreneurs?

Question

i am a studen, carrying out the surveying for the title “A study on the importance of various forms of business entity for the various types of business activities to the entrepreneurs”
I would like to know in Malaysia have many :
Sole trader
Partnership
Private limited companies
Public limited companies
then all of this infor, can i get from where?
and all of this form of their advantage and disadvantage.
thank...

Answer 1

Suruhanjaya Syarikat Malaysia (SSM) is the goverment body which handling the formation of various forms of business entity in Malaysia.

For example, sole proprietorship, partnership (perkongsian) and private limitedcompany (syarikat sendirian berhad)

Advantages of sole proprietorship:
a) Formation cost: The formation is easy and at very low cost (RM30).

Disadvantages:
i) It is not a separate legal entity. When the owner died, his business needs to be liquidated.

ii) Unlimited liability - His debt is binding on his estate which includes his personal assets.

Partnership
Advantages:
a) Team power- A combination of at least 2 person's ideas, skills, resources, etc.

Disadvantages:
i) Each business partner is subject to umlimited liability (the same situation like sole proprietorship)

Privated Limited Company
Advantages:
a) Separate legal entity which is independt from its owners.

b) Imej - Better image in front of public ( company seems serious in business)

c) Perpetuity - The death of the shareholder will not affect the continuity of the company.

Disadvantages:
i) High setting up fee and operation cost (includes monthly secreatary fees and yearly audit fees)

ii) Insufficient money to buy over deceased the passed away) shareholder's share if the 10 times bigger than early stage of the company.
However, this issue can be solved by purchasing business insurance .


******Please refer to Company Act 1965 (Act 125), Partnership Act 1961 for details.******