If you want to start a business, be sure to understand the type of business registrations available in Malaysia. Sole Proprietorship is one of the business registrations available. What is Sole Proprietorship? Let us have a look at the variable meanings.
There is a long list of explanation available but here is a few descriptions:
- A sole proprietorship, or simply proprietorship (British English: sole trade) is a type of business entity which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. …
- A business that is wholly owned by a single person, who has unlimited liability
- A sole proprietorship is an unincorporated business owned by a person.
Sole proprietorship is the most simple form of business registration in Malaysia.
There is only one owner but there might be many employees to run the business together. You should understand the advantages and disadvantages before you proceed with your registration to make sure you fully understand sole proprietorship. There is no way you want to jump into business without proper research.
- You have the freedom to make decision for your business.
- All profits will be your own personal income.
- You don’t have to appoint your own accountant to keep your account record.
- When it comes to tax, you only need to pay personal income tax and not business tax.
- You will carry all the responsibility for your debts and risks in the business.
- Your personal property will also be your business property. That means your liability is unlimited.
Whether you want to start your own design business, sewing business or hosting business, you can register for sole proprietorship before you start your business. It is very important to make sure you register your business before you commence the business to avoid penalty (usually RM 50).
To find out how you can register your sole proprietorship online, refer to Malaysia.gov.my for details.