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Business RegistrationAct (Amendment

1978) And ProceduresOf Business

Registration 1957

Partnership Sole Proprietorship

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A sole proprietorship is an attractive form oflegal status for a new business.

The simplest business structure.

It is formed under the Business Registration Act1956(Amendment 1978) and the Procedures ofBusiness Registration 1957.

Solely owned and operated by

an individual

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Make decisionon his own,

Grandepositione, isnt it ?

Enjoy certaindegree of

flexibility

Easy to form and

dissolved

Deserve eachcents of the profit Secrets are safe

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A partnership is formed under the Business

Registration Act 1956 (Amendment 1978) andthe Procedures of Business Registration 1957.

It is a business owned by at least two or more

individuals but not exceeding 20 peoples.

All partners agree to undertake a joint business

and jointly own the business

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Easy to set upEasier to secure

financialassistance

Equityincreased by

many partners

Reducedbusiness risks

Dividedresponsibility

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EUW 224 ENGINEERING ENTREPRENEURSHIP 10

Life span isdepending

on life ofpartners

MisconductPersonalclashes

Unlimitedbusinessliabilities

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All companies in Malaysia are governed by the CompaniesAct 1965.

It is a corporate body which it is a legal entity

Its identity is separated from the identities of the members.

Characteristics

- Right and Responsibility

- Life Span

- Liabilities

- Membership

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There are two types of companies which are:

a) Private limited companies.

The number of members does not exceed 50 peoples.

Authority to transfer ownership.

Not allowed to sell or offer any share or debentures to

general public

Not allowed to offer general public to deposit money within

a stipulated time Must use the words Sdn. Bhd.

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Funds are easy

to acquire

Shareholdersare legally

protected

BOD runs thecompany, not

theshareholders

Limited liabilities

Life span ofbusiness is notdependent on

members

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EUW 224 ENGINEERING ENTREPRENEURSHIP 14

Sharescannot betransacted

through sharemarket

AuditCorporate tax

Subject tomore rules