Comparison of Sdn Bhd, Enterprise, and LLP (Limited Liability Partnership)

Enterprise (Sole Proprietor/Partnership)

Advantages:

Simplicity & Low Costs:
Registration process is straightforward and quick.
Annual costs are typically under RM100.

Full Control:
Business owners (sole proprietors/partners) have complete control over decisions without needing to navigate complex administrative processes.

Disadvantages:

Unlimited Liability:
The business owner's personal assets are tied to the company’s debts.

Example: If the business owes RM50,000, the owner(s) must personally repay the debt.

High Personal Tax Rates:
Business income is taxed as personal income. Owners earning RM200,000+ are taxed up to 26%-30%, which can be higher than corporate tax rates.

Limited Financing Options:
Enterprises cannot raise funds through equity financing.
Loan approvals are often smaller or even denied by banks, particularly for sole proprietorships.

Sdn Bhd (Private Limited Company)

Advantages:

Limited Liability:
Shareholders’ personal assets are protected from company debts.

Lower Tax Rates:
Corporate tax rates are 15%-24%, generally lower than personal tax rates.

Better Financing Opportunities:
Sdn Bhd can raise funds through equity financing and is more likely to secure loans.

Business Continuity:
The company operates as a separate legal entity, unaffected by shareholders' personal issues like bankruptcy or death.

Credibility:
Sdn Bhd offers a professional image, instilling greater trust in customers, suppliers, and investors.

Disadvantages:

Higher Costs & Compliance:
Initial setup costs and ongoing compliance fees (e.g., audit reports, tax filings) are significantly higher than for Enterprises.

Requires appointing a company secretary and preparing audited financial statements.

Administrative Burden:

Decision-making involves formal procedures, board meetings, and documentation.

LLP (Limited Liability Partnership)

Advantages:

Limited Liability:
Like Sdn Bhd, LLP partners are protected from personal liability beyond their capital contribution.

Flexibility in Operations:
Combines the simplicity of a partnership with the liability protection of a company.

No Audit Required:
LLPs do not require annual audits, reducing compliance costs.

Suitable for Professionals:
Popular among professionals like lawyers and accountants forming partnerships.

Disadvantages:
Limited Financing Options:

LLPs cannot raise funds through equity financing.

Public Perception:
LLPs may lack the professional image and credibility of Sdn Bhd, especially for larger or corporate clients.

Complex Registration:
Registration and compliance are more complex than for Enterprise, though simpler than Sdn Bhd.

Sdn Bhd、Enterprise 和 LLP（有限责任合伙企业）的比较

企业（独资/合伙）

优点：

简单且成本低：
注册过程简单快捷。
每年的费用通常低于 RM100。

完全控制：
企业主（独资经营者/合伙人）可以完全控制决策，而无需处理复杂的管理流程。

缺点：

无限责任：
企业主的个人资产与公司的债务挂钩。

示例：如果企业欠 RM50,000，业主必须亲自偿还债务。

高个人税率：
营业收入作为个人收入征税。收入超过 RM200,000 的业主需缴纳高达 26%-30% 的税，这可能高于企业税率。

有限的融资选择：
企业不能通过股权融资筹集资金。
银行批准的贷款往往较少甚至拒绝，特别是对于独资企业。

Sdn Bhd（私人有限公司）

优点：

有限责任：
股东的个人资产受到保护，免受公司债务的影响。

较低的税率：
公司税率为15%-24%，一般低于个人税率。

更好的融资机会：
Sdn Bhd可以通过股权融资筹集资金，并且更有可能获得贷款。

业务连续性：
该公司作为独立的法人实体运营，不受股东破产或死亡等个人问题的影响。

信誉度：
Sdn Bhd 提供专业形象，为客户、供应商和投资者赢得更大的信任。

缺点：

更高的成本和合规性：
初始设置成本和持续合规费用（例如审计报告、税务申报）明显高于企业。

需要任命一名公司秘书并准备经审计的财务报表。

行政负担：

决策涉及正式程序、董事会会议和文件。

LLP（有限责任合伙企业）

优点：

有限责任：
与 Sdn Bhd 一样，LLP 合伙人除了出资之外，也免受个人责任。

操作灵活：
将合伙企业的简单性与公司的责任保护结合起来。

无需审核：
有限责任合伙企业不需要年度审计，从而降低了合规成本。

适合专业人士：
深受律师和会计师等建立合伙企业的专业人士的欢迎。 

缺点：

有限的融资选择：
有限责任合伙企业不能通过股权融资筹集资金。

公众看法：
有限责任合伙企业可能缺乏私人有限公司的专业形象和信誉，特别是对于大型或企业客户而言。

复杂注册：
注册和合规性比企业更复杂，但比私人有限公司更简单。