Difference between SDN BHD, Sole-Proprietor and Partnership

Sdn Bhd Vs Sole-Proprietor and Partnership meaning and difference

Sole proprietorships, partnerships, and Sdn Bhd companies are the business structures which a prospective business owner in Malaysia could possibly establish. Each has specific characteristics which serve to distinguish it from the other business structures of Malaysia.

Types of Business Structures Which Can Be Used for Company Incorporation in Malaysia


  • Sole Proprietorship: This is a traditional and common business structure which can be found all over the world. For certain businesses, this structure is suitable because it is the simplest and least expensive business structure with regard to its setup.
  • Partnership: This is a business which is owned by two or more separate entities.
  • Sdn Bhd Company: The term “Sdn Bhd” stands for Sendirian Berhad. A Sdn Bhd company is a private limited company which cannot make its shares available to the general public. To incorporate or register a Sdn Bhd company in Malaysia, there must be a minimum of two directors. Shareholders and directors of a Sdn Bhd company do not risk losing any of their personal wealth or assets.



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