Business Advisory and HR Management:

SECLINK MANAGEMENT CONSULTANTS SDN. BHD.

  3. Business Advisory and HR Management:

Business Advisory and HR Management:

Description

Delivering result solution, strategic HR Consultancy, HR Policies & Procedures facilitating private and public sector clients providing human resource related consultancy services at both strategies and operational levels

TYPES OF BUSINESS ENTITY

A person who intends to do business in Malaysia must first register a business firm or incorporate a company with the Companies Commission of Malaysia.

Business entity may be classified into the following two basic types:

Business Firm

  • Sole proprietorship
  • Partnership
A sole proprietorship is a business with one-person ownership, and a partnership is a business entity owned by an association of individuals. Both sole proprietorship and partnership are

unincorporated bodies, and are not legal entities and do not have legal status.

Registered Company

A registered company is a company incorporated or formed by registration under the Companies Act, 1965. The incorporation is administered by the Companies Commission of Malaysia. It comes under the jurisdiction of the Ministry of Domestic Trade and Consumer Affairs.

A company is an artificial legal person and is a legal entity separate from its constituent members. Thus, like a person in law it has legal rights and obligations similar to a natural person. It may buy or sell property, exercise rights of ownership and may sign contracts by using its common seal. The common seal of a company is the signature of the company. It may also sue or be sued, open a bank account in its own name, owe money to others, be a creditor of other people and other companies and employ people to work for it.

Types of Registered Companies
The following types of companies may be incorporated under the Companies Act, 1965 [S14(2)]:a) a company limited by shares; (Sdn Bhd/ Bhd) - most popular/ common

  1. a company limited by shares; (Sdn Bhd/ Bhd) - most popular/ common
  2. a company limited by guarantee;
  3. a company limited both by shares and guarantee; and
  4. an unlimited company with or without share capital.
A company having a share capital may be incorporated as a private or public company

IT IS EVIDENT that there are advantages and disadvantages in forming a business firm (sole proprietor or partnership) or incorporating a company. A person has to decide which type of business entity he wishes to form. The factors to consider are:
  • nature of business;
  • number of participants in the business;
  • the relationship among the participants;
  • the amount of capital available and required;
  • the potential of the business;
  • tax implications; and
  • future plans and development of the business.