- Owned by a single individual.
- Business is dissolved when owner dies. No transfer of ownership is possible.
- Does not need to submit any financial reports.
- Unlimited liability - owner is obliged to pay for all business debts from his personal assets if need to.
- All profits and losses are borne by owner unlimited
PARTNERSHIP
- An association of two or more individuals.
- Ownership can be transferred through transfer of shares by either sale or inheritance.
- Submit financial reports to the Companies Commission of Malaysia (CCM)
- Risk and profit share is determined by partnership agreement.
- Profits are divided according to the partnership agreement.
COMPANY
- It is a legal entity and is owned through ownership of shares.
- Ownership can be transferred through transfer of sales by either sale or inheritance.
- Must submit financial reports to the CCM and if listed Securities Commission (SC)
- All shares are limited liability - risk is limited to amount of money invested in the shares.
- Owner profits from dividends or sale of shares
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