Malaysians or permanent residents of Malaysia who want to start a small business with business partners.<\/p>\n\n\n\n

Advantages of a LLP<\/h3>\n\n\n\n

\n
• It has no maximum limit on the number of partners.<\/li>\n\n\n\n
• It is relatively cheap to set up.<\/li>\n\n\n\n
• It has flexible agreement among partners.<\/li>\n<\/ul>\n\n\n\n

  Disadvantages of a LLP<\/h3>\n\n\n\n

  \n
  • It is unable to raise funds from the public.<\/li>\n\n\n\n
  • It is governed by a relatively new law, which could be confusing.<\/li>\n<\/ul>\n\n\n\n

    Comparison of LLP and partnership<\/strong><\/p>\n\n\n\n

    Business Entity<\/strong><\/td>	No. of Business Owners<\/strong><\/td>	Personal Liabilities<\/strong><\/td>	Taxes<\/strong><\/td><\/tr>
    LLP<\/td>	Minimum 2, with no maximum limit<\/td>	A separate legal entity, with company\u2019s liabilities separated from the directors\u2019 and shareholders\u2019.<\/td>	Corporate Tax<\/td><\/tr>
    Partnership<\/td>	2 \u2013 20 partners (except for Partnership in professional practice)<\/td>	Not a separate legal entity, unlimited liabilities at personal capacity among all the partners.<\/td>	Personal income tax, shared among the partners<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Deciding on the most suitable business entity to register gives you an upper hand in getting started with businesses legally in Malaysia. Bear in mind even though you may enjoy more financial security when running your business as a company, all companies incorporated are required to fulfil mandatory obligations, such as getting a company secretary<\/a> (in place of a company secretary, an agent for Foreign Companies and a compliance officer for PLT companies), lodging annual returns, and filing taxes. Hence, it is crucial to weight the pros and cons of each business entity in advance to make the most out of the process.<\/p>\n","protected":false},"excerpt":{"rendered":" There are 8 types of business entities for entrepreneurs to register in Malaysia, with private limited company (Sdn Bhd) being one of the most common ones.<\/p>\n","protected":false},"author":2,"featured_media":248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-starting-your-business"],"_links":{"self":[{"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/posts\/247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/comments?post=247"}],"version-history":[{"count":9,"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/posts\/247\/revisions"}],"predecessor-version":[{"id":406,"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/posts\/247\/revisions\/406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/media\/248"}],"wp:attachment":[{"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/media?parent=247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/categories?post=247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foundingbird.com\/wp-json\/wp\/v2\/tags?post=247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}