MalaysiaBiz

	BUSINESS		COMPANY	LIMITED LIABILITY PARTNERSHIPS (LLP)
	Partnership	Sole Proprietorship	COMPANY	LIMITED LIABILITY PARTNERSHIPS (LLP)
Capital Contribution	Partners	Own contribution	Capital	Partners
Ownership	Owned by two (2) or more persons but not exceeding 20 persons	Wholly owned by a single individual	Private Company At least one (1) director who ordinarily reside in Malaysia by having a principal address of residence in Malaysia and one (1) shareholder. Public Company At least two (2) directors who ordinarily reside in Malaysia by having a principal address of residence in Malaysia and minimum one (1) shareholder.	At least two (2) persons (wholly or partly, individual or corporate body) Unlimited for the number of partners
Legal Status	Not a separate legal entity	Not a separate legal entity	Separate legal entity	Separate legal entity
Liability Party (responsible for debt)	Partners	Business owner	Company (liability is limited to the amount of shares invested or guarantee)	LLP
Management Responsibilities	Partners	Business owner	Board of Directors	Partners
Personal Liability	Unlimited liabilities (jointly and severally liable with partnership) which may include partner's personal assets	Liability to owner is not limited to invested capital. It also includes the personal assets of a single owner	Private Company Limited By Shares (Sdn. Bhd., Public Company Limited By Shares (Berhad) & Company Limited by Guarantee No liability against directors or shareholders. Liability of members is limited to the amount of capital invested in the company Liabilities incurred by directors or shareholders to the extent of the non-paid capital	Conventional Partnership to LLP The liability incurred is limited to an agreed agreement There is no liability to the partners except for wrong doing or omission or without authority Private Limited Company to LLP The partner’s liability is jointly and severally with LLP to the extent of the non-paid partner’s capital
Risk	Risk contribution to partners	Full risk on business owner	Investment risk does not involve personal assets	Risk contribution to partners
Advantages and disadvantages	Advantages: Easy to set up Easy to get capital Disadvantages: Unlimited liability	Advantages: Easy to set up Disadvantages: Limited capital Unlimited liability	Advantages: Company shares may be traded with the approval of other shareholders Higher capital Long lifespan (owner and companies are separate entities) Shareholders are protected by law Disadvantages: Longer procedure of incorporation The cost of incorporation is quite high	Advantages: Limited liability Partners asset is protected Disadvantages: An LLP must have at least two (2) members. If one (1) member chooses to leave the partnership, the LLP may have to be dissolved.
Taxation	Income tax	Income tax	Corporate tax Income tax on individual shareholders	Corporate tax Income tax on individual shareholders
Business Termination / Dissolution of Company	Easy to terminate and shorter procedure (no fees required)	Easy to terminate and shorter procedure (no fees required)	Takes a longer time and procedure to dissolve the company	Takes a longer time and procedure to dissolve the LLP

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Integration Agency