Sole Proprietorship vs Sdn Bhd
Business
A sole proprietorship (or partnership) is the simplest business form, cheap and easy to register with SSM, but the owner and business are legally the same, so the owner bears unlimited personal liability for debts. A Sdn Bhd (Sendirian Berhad) is a private limited company, a separate legal entity owned by shareholders whose liability is generally limited to their shareholding. Sdn Bhd offers better protection, easier fundraising, and often more credibility, but has stricter compliance, higher setup and running costs, and audit and filing duties. The right choice depends on scale, risk, and tax, subject to the latest rules.