Sole Proprietorship

Sole proprietorship is the most common form of business which own by only one individual. Which mean the owner must responsible with the firm debts. In the other way, the firm profit will also be entitled by the owner. Besides that, there is no difference between the firm and the owner. If the sole proprietor have been charge, injured or even pass away, not only all the money that the owner invests will be lose but also the owner personal assets too. The sole proprietor and their firm are same, which mean the firm profit will be the personal income too. So the taxes will only be charges at the personal level only.

The sole proprietorship has its own advantages and disadvantages. The advantages of it are sole proprietorship can be easily to start up. It will be the easier and least costly business structure to set up. Second, sole proprietor will have a full control of the business because there is only one sole owner to run the business. Lastly, a sole proprietor no need to pay unemployment tax on the owner even they must pay unemployment tax on employees.
For the disadvantages of the sole proprietorship, the sole proprietor will have a limited of out sourcing in financing because they only can use their own money to set up the firm of borrow from the bank, friends and family. Furthermore, sole   proprietorship is unlimited liabilities. All the debts will be in charges by the owner. Lastly, sole proprietorship will be easily to shut down once the owner depressed from the business or pass away.

To start the sole proprietorship in Malaysia, we can go to the nearest   Suruhanjaya Syarikat Malaysia (SSM) to register for it. We just have to complete the Business Registration Form (Form A), and the registration will be done within 30 days.