Business

SMEs finding hard to obtain bank loans – Fact or Perception?

Posted in Blog, Business

SME finding hard to obtain bank loans: Fact or Perception? In the past week, I came across a few newspaper articles addressing the issue about the difficulty for Small and Medium Enterprises (SMEs) to obtain bank loans that I find interestingly confusing. Bank Negara commented that banks are over cautious even after the central bank gave assurance that ample liquidity in the banking sector and have the ability to lend. While Bank Negara had led the move by cutting the overnight policy rate and statutory reserve requirement for reduced cost of funds, many banks are not releasing their “over”...

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Partnership Business

Posted in Blog, Business

What is a Partnership business? As its name suggests, this form of entity is when two or more persons come together to carry out a business. However, the maximum number of persons allowed in a partnership is 20. Same like the Sole Proprietor, liabilities for the Partnership is also unlimited. You can refer to the explanation for unlimited liability in the Sole Proprietor section. Partnership Act 1961 Unlike Sole Proprietor which does not have an Act created for it, all Partnerships are governed by the Partnership Act 1961. In event that the partners make their own agreement, that agreement...

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Sole Proprietorship – Setting up a business venture in Malaysia

Posted in Blog, Business

Sole Proprietorship What is a Sole Proprietor business? Sole proprietorship is a form of business entity which is set up solely by one person only. Everything within this kind of entity will be the responsibility of this one owner. For this entity, his liability is unlimited. Unlimited liability means that the owner will be personally liable for the debts owing by his/her Sole Proprietor business. A further elaboration on the meaning of unlimited liability is this: if the Sole Proprietor business fails or unable to repay its debts, the creditors have the right to sue and obtain a court order...

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Company Strike Off – Section 308 (2) of the Companies Act 1965

Posted in Blog, Business

In recent months, I have been approached by many of my business contacts and friends, asking me about closing a Sendirian Berhad (private limited company). More often than not, these entrepreneurs were expecting me to give them a very simple and cost effective solution. To their dismay, some got worried and others were felt threatened with the amount of time and effort required to close a company, let alone the cost and conditions for company closure. Since I have already written a few articles on company formation and setting up of a company, this is possibly a good time for me to shed some...

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