This post is to give an insight to readers regarding the company law in Malaysia. Part 1 of the Company Law will introduce the definition of company law and major difference between a company, partnership and sole partnership in terms of formation of the firms.
1) What is Company Law?
Company Law is the law relating to companies in Malaysia contained in the Companies Act 1965 (Revised 1973). There are few key areas of company law based on judicial precedents although company law in Malaysia is based mainly on said act.
2) What is the major difference in structure of a company, partnership and sole partnership?
By definition, sole proprietorship is formed by an individual in business on his own while partnership is formed by two or more persons carrying on business with a view of profit. On the other hand, a company is a person separate from its members.
3) How a company, partnership and sole partnership is registered in Malaysia?
A company need to be registered with Registrar of Companies as a company under Companies Act 1965. Mean while, partnership and sole partnership need to register their business under the Registration of Businesses Act 1956.
4) How is the constitution of company, partnership and sole proprietorship is formed?
A company must be constituted in writing for example, the Memorandum and Articles of Association. A partnership may be formed orally or by writing. For sole proprietorship, there is no agreement needed since sole proprietor is only one person by himself.
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