Business Entity and Support System

8/17/2019 Business Entity and Support System

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ETR 300 medec 1

FORMS OF BUSINESS

ENTITIES AND BUSINESS

SUPPORT SYSTEM


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ETR 300 medec 2

Session ObjectivesAt the end of the session, students should

be able to:

understand various forms of

business oranisations in !ala"sia


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ETR 300 medec 3

LEGAL FORMS OF BUSINESSES IN MALAYSIA

Registration of Business Entities:

1$ %usiness Reistration Act 1&'( )Amendment

1&*+ * -rocedures Of %usiness Reistration 1&'*

2$ .om#an" Act 1&('

3$ .oo#erative Act 1&/+

/$ -arliamentar" Act or State )overnment Enactment


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ETR 300 medec /

.ommon forms of business structure:

Sole #ro#rietorshi# or sole trader

-artnershi#

imited com#an"3 !AOR .ARA.TER4ST4.S:

1$ 56!%ER O7 O85ER)S

2$ 4A%44T4ES O7 O85ER)S3$ 47E S-A5 O7 TE %6S45ESS 9 .O!-A5


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ETR 300 medec '

Sole ProprietorshipSole !ra"er

Solel" o;ned b" one #erson

!anaement rests on that #erson


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ETR 300 medec (

Partnership

-artners 9 O;ners : !in 2 and !a


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ETR 300 medec *

-artnershi#s are overned b" the -artnershi# Act

1&(1$ 4f the #artners do not ma=e their o;nareement, the #rovisions of the Act ;ill become

a##licable, such as:

#rofits > losses are to be shared e?uall"

no interest is #a"able on #artners@ ca#ital

ever" #artner is entitled to #artici#ate in the manaement

of the business

no #artner is entitled to a salar" for #artici#atin in the

#artnershi# business

e


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ETR 300 medec +

Li#ite" $o#pan%

A limited com#an" is incor#orated under the

.om#anies Act 1&('$ 4t can be:

A com#an" limited b" shares -rivate limited com#an" )Sdn %hd

-ublic limited com#an"

7orein o;ned com#an"


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ETR 300 medec &

$o#pan% Li#ite" B% Share

The liabilit" of a member@s contribution to

the com#an"@s assets is limited to the amount

s#ecified, if an", un#aid on his share$ The

#ersonal assets of a shareholder ;ould not

be available to the creditors of the com#an"$

T;o t es of com anies limited bu share:


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ETR 300 medec 10

Pri&ate Li#ite" 'o#pan% (S"n) Bh")*

1$Restricts the riht to transfer its share

2$imits the number of its members 9

shareholders bet;een 2 to '03$-rohibits an" invitation to the #ublic to

subscribe for an" shares in the

com#an"/$-rohibits an" invitation to the #ublic to

de#osit mone" ;ith the com#an"

for fi


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ETR 300 medec 11

Pu+li' Li#ite" 'o#pan% (Bh")*

A #ublic limited com#an" is an"

com#an" other than a #rivate com#an";hose shares ma" be offered to the

#ublic for subscri#tion$ Such shares are

freel" transferable$


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ETR 300 medec 12

A,-AN!AGES AN,

,ISA,-AN!AGES OF EA$.BUSINESS FORM


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ETR 300 medec 13

Sole ProprietorSole !ra"er

Advantages

1$ Eas" to set u# fe; formalities2$ Eas" to manae the o;ner is the boss

3$ The o;ner =ee#s the #rofits

/$ The o;ner is not re?uired to disclose


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ETR 300 medec 1/

Sole ProprietorSole !ra"er

Disadvantages1$ The o;ner is totall" res#onsible for

an" debts incurred b" the business if

the business fails or oes ban=ru#t,


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ETR 300 medec 1'

Partnership

Advantages1$ Eas" to set u# fe; formalities

2$ The o;ners are not re?uired to disclose

business affairs to the eneral #ublic

3$ .ontributions to ca#ital can be increased


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ETR 300 medec 1(

Partnership

Disadvantages

1$ Each #artner is liable for the debts of

the business reardless of ;hich #artner


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ETR 300 medec 1*

Li#ite" $o#pan%

Advantages

Shareholders are not liable for the

com#an"@s debts be"ond the amount of

share ca#ital the" have subscribed

Easier to transfer o;nershi#, either ;holl"


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ETR 300 medec 1+

Li#ite" $o#pan%

Disadvantages

1$ The #ublic ;ill have access to the financial

affairs of the com#an"2$ The com#an" has to com#l" ;ith the

re?uirements of the .om#anies Act 1&('

3$ The com#an" has to a##oint auditors to verif"


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ETR 300 medec 1&

.O/ !O REGIS!ER NE/

BUSINESSES$OMPANIES

All forms of sole traders and #artnershi#s are re?uired under the

Reistration Of %usiness Act 1&'(

to be reistered ;ith the Reistrar of


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ETR 300 medec 20

Sole Proprietorship

%efore reisterin a business, com#lete a name

search form to ensure that there is no du#lication

4f the name is a##roved, #roceed to thefollo;in ste#s:

Step 1 : O+tain for# 0A0 fro# ROB Step 2: $o#plete For# 0A0

Step 3: .a&e it &erifie" +% $o##issioner for Oaths

Step 4: Su+#it For# 0A0 1ith a photo2'op% of %our i'


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ETR 300 medec 21

Me#oran"u# an" Arti'les ofAsso'iation

The affairs of a limited com#an" areoverned b" these documents$ These

are usuall" combined into one


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ETR 300 medec 22

Me#oran"u# of Asso'iation

This document defines the essential com#onents

of the structure of the com#an"$ 4t contains: the name of the com#an"

the situation of the reistered office

the objects of the com#an"

that the liabilit of members is ltd$


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ETR 300 medec 23

Arti'les of Asso'iation

This document constitutes the internal reulations of

a com#an"$ 4t contains:

the name of the com#an"

the name of directors

the minimum and ma


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ETR 300 medec 2/

Pro'e"ures an" Legal Aspe'ts

Li'ense3 Per#it an" Letter of Authorit%

icense

%usiness icense

8holesalin icense

!anufacturin icense

7ood !anufacturin icense Sales Ta< icense E


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ETR 300 medec 2'

Pro'e"ures an" Legal Aspe'ts

-ermits

7orein 8or=ers’ Entr" -ermit

Trans#ortation -ermit

etter Of Authorit"

.ertificate of 7itness


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ETR 300 medec 2(

Other Pro'e"ures !o Be $onsi"ere"

Assemblin of !achiner" and E?ui#ment -ollution .ontrol

%usiness Rihts Trade !ar= -rotection

-atent -rotection .o#"riht

Standards and Cualit"

ire -urchase Act

8or=ers’ Social 5eeds 4nfrastructure 5eeds

4m#ort and E


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ETR 300 medec 2*

BUSINESS SUPPOR! SYS!EM

!he Entrepreneur

!e'hni'al

Assistan'eMar4eting

Assistan'e

Finan'ial

Assistan'e

Business

Infor#ation

Ser&i'esBusiness

Resear'hE5tension

Ser&i'es

$onsultan'%6 A"&isor%

Ser&i'es

Infra2stru'ture

!raining3

Se#inar 6

/or4shop


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ETR 300 medec 2+

Technical AssistanceSIRIM3 MARA3 MAR,I3 RRI3 PORIM

Marketing AssistanceMI!I3 MA!RA,E3 FAMA3 NR$

,IS!RIBU!ORS3 GU!.RIE3 BES!A

Infrastructure

MARA3 P7EN3 SIRIM3 U,A3 7PLB3 BPIMB3MI,A


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ETR 300 medec 2&

Information Services

MA!RA,E3 MI!I3 MAR,I3 SIRIM3 MI,A3FRIM3 uni&ersities

Business esearchMAR,I3 SIRIM3 uni&ersities

!inancial Assistance 'o##er'ial +an4s3 #er'hant +an4s3

in"ustrial +an43 finan'ial institution3

go&ern#ent agen'ies


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ETR 300 medec 30

"onsultanc# $ Advisor# Services

ME,E$3 MARA

Training% Seminar and &orkshop

ME,E$3 PUNB3 MARA3 F,PN3 SE,$

'(tension ServicesME,E$3 MI!I3 SIRIM3 MARA3

MA!RA,E3 MAR,I3 NP$

Documents

Business Entity and Support System