Sole proprietorship or Sdn Bhd — what's the difference?
A sole proprietorship (enterprise) is you: registered under ROBA 1956, Malaysian/PR-only, unlimited personal liability, profits taxed as personal income at 0–30%, renewal RM60 a year for up to five years at a time. A Sdn Bhd is a separate legal entity: limited liability, SME rates of 15%/17%/24%, and yearly compliance. Which wins depends on your profit and risk.
Statutory figures: ROBA 1956 Companies Act 2016 LHDN rates
Also asked as: sole prop vs sdn bhd; enterprise vs sdn bhd; beza enterprise dan sdn bhd; which business structure malaysia; sole proprietor or company.
The trade in one line: the enterprise is cheap to keep but exposes everything you own; the Sdn Bhd protects you and often taxes growth more efficiently, at the cost of real annual compliance (secretary, accounts, tax filing, audit unless exempt).
Run your own numbers in our cost calculator, or send your profit range on WhatsApp +60 10-383 5988 — we'll tell you plainly which structure fits, including when the honest answer is 'enterprise first'.
Key facts
- Enterprise: ROBA 1956, unlimited liability, personal tax 0–30%
- Sdn Bhd: CA2016, limited liability, SME 15/17/24%
- Sdn Bhd compliance: secretary, annual return, accounts, tax
WhatsApp +60 10-383 5988 (licensed secretary replies the same working day) or walk in at J-3A-15, Solaris Mont Kiara.