Type of Business

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2.0 TYPES OF BUSINESS

2.1 SOLE PROPRIETORSHIP

Sole proprietorship is a type of business organization in Malaysia. Basically, the business is owned by a person. The business can be applied by only a Malaysia citizen and or a permanent resident. It is simplest organization in Malaysia with minimal legal requirements.

Advantages of sole proprietorship are that the proprietor can have a lot of satisfaction in working for you. Moreover, the proprietor does not need go through a lot of complicated acknowledgement from other parties as this is owned by only him. Also, this business can be started effortlessly with minimal capital requirements. As a result, he can receive all the profits. Typically, the business can be kept private. Proprietor can make decisions by his own. Normally, this business would retain own customers by having personal contact.

Disadvantages of sole proprietorship are that proprietor will have to bear infinite liability for any losses sustained by the business. The proprietor is responsible entirely for the debts of the business. Proprietor capability is limited since to be a successful owner you will need to obtain relevant advice from other experts. Additionally, the business will have insufficient capital to