There are several types of business structures that you can choose from when starting a business in Malaysia. These include:
1) Sole proprietorship: A sole proprietorship is a business owned and operated by a single individual. This is the simplest and most common type of business structure in Malaysia. As the owner, you have complete control over the business and are responsible for all of its debts and obligations.
2) Partnership: A partnership is a business owned and operated by two or more individuals. Partnerships can be either general partnerships, where all partners are jointly and severally liable for the business’s debts and obligations, or limited partnerships, where some partners are only liable for the business’s debts and obligations to the extent of their contribution.
3) Private limited company (Sdn Bhd): A private limited company is a business owned and operated by shareholders who have limited liability for the company’s debts and obligations. This is the most common type of business structure for companies in Malaysia.
4) Public limited company (Bhd): A public limited company is a company that is listed on a stock exchange and has a minimum number of shareholders. Shareholders of a public limited company have limited liability for the company’s debts and obligations.
5) Cooperative: A cooperative is a business owned and operated by a group of individuals for their mutual benefit. Co-ops can be either worker co-ops, where the members are also the workers, or consumer co-ops, where the members are the customers.
It is important to choose the business structure that is best suited to your needs, taking into account factors such as the size and nature of your business, the level of liability you are willing to take on, and the level of control you want to have over the business. It is advisable to seek the assistance of a professional service provider, such as a company secretary firm, to help you determine the best business structure for your needs.