1. The differences between Sole Proprietor/ Partnerships/ Enterprise/ PLT vs Sdn. Bhd. (Company Incorporation)
| Description | Sole Prop/ Partnership/Ent. | Sdn. Bhd. |
| Start Up Cost | RM 60 to apply license from SSM | RM 2,183.20 incorp fees |
| Business Start Date | Immediately after registration from SSM | 1 day after company incorp |
| Liability | Partner/ Owners | Company |
| Annual Maintenance | Less then RM 100 per annum | RM 70 monthly CoSec fee |
| Tax Planning | Limited management | Efficient |
| Bank Facility Application | Owner’s business history | Company’s business history |
| Ownership | Partners/ Owners | Shareholders |
| Management/ Control | Partners/ Owners | Directors |
| Income Tax Liability | Partners/ Owners | Company |
| Income Tax Form | Form P (Partnership/ Form B (Sole P.) | Form C |
| Statutory Audit | No | Yes (from RM 1,000 per annum) |
| Required CoSec | No | Yes (Registered CoSec) |
| SSM Annual Return | No | Yes |
Business Entities in M’sia in
PDF Version: Type of Business Entities in Malaysia 26032020
2. SME Definition:
Given that there have been many developments in the economy since 2005 such as price inflation, structural changes and change in business trends, a review of the definition was undertaken in 2013 and an SME definition was endorsed at the 14th NSDC Meeting in July 2013.
The definition was simplified as follows:
a. Manufacturing: Sales turnover not exceeding RM50 million OR full-time employees not exceeding 200 workers.
b. Services and other sectors: Sales turnover not exceeding RM20 million OR full-time employees not exceeding 75 workers.
c. A business can qualify as an SME if it meets either one of the two specified criteria, namely sales turnover or full-time employees, whichever is lower.
Detailed definition by category namely micro, small and medium is as follows:
Reference: http://www.smeinfo.com.my/official-national-sme-definition