What is Sole Proprietorship?
Sole Proprietorship registration is the most common and simplest legal business structure option in Malaysia. Sole Proprietorship is governed by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) and Registration of Businesses Act 1956 .
A Sole Proprietorship is a business wholly owned by a single individual using personal name as per his / her identity card or trade name. To register a Sole Proprietorship, the business owner must be Malaysian citizen or permanent resident. Foreigner and corporate legal entity are not allowed to register sole proprietorship in Malaysia.
Unique features of a Sole Proprietorship like fast and easy registration, no corporate tax payments, less formal business requirements, winding up easily and lowest annual maintenance (Compare to other business vehicle such as Private Limited Company (Sdn. Bhd.) or Limited Liability Partnership).
It is suitable for newly start up business owners to try their new business strategy or explore into new market. Business owners may subsequently transform their business into Private Limited Company (Sdn. Bhd.) if they feel their businesses are stable/ aim to do bigger business. Sole Proprietorship will transform to Partnership if there are additional partners joined the Sole Proprietorship.
Advantages of Sole Proprietorship
Factors to Consider in Sole Proprietorship Name Selection
The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming for your company
Short & Simple
The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it.
The name of your company should be related to your business. It should fit the company’s branding and corporate identity.
Name of your company should not be same or identical to an existing company or trademark. You can go to www.ssm-einfo.my to check if your company name is identical to others. You should ideally avoid plural or changing just letter Case, spacing or punctuation marks in an existing company name.
Should not be illegal / offensive
The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.