# Differences Between Sole Proprietor and Corporation in Malaysia A sole proprietorship in Malaysia is a business owned and operated by one individual. In contrast, a corporation (specifically a "Sendirian Berhad" or Sdn. Bhd.) is a separate legal entity, distinct from its shareholders. A sole proprietorship is easy to establish and involves minimal regulatory requirements. The owner has unlimited liability, meaning personal assets can be used to settle business debts. Profits are taxed as personal income, and business continuity depends entirely on the owner. The sole proprietor has full control over decision-making. A corporation requires registration with the Companies Commission of Malaysia (SSM), and is governed by the Companies Act 2016. It has limited liability, so shareholders' personal assets are protected. The company is taxed separately from its owners, and ownership is transferable through the sale of shares. Corporations have perpetual succession, meaning the company continues to exist even if shareholders change. Management is typically separated from ownership, with directors running the company. In summary, a sole proprietorship offers simplicity and direct control but comes with unlimited liability, while a corporation provides limited liability, continuity, and regulatory requirements, but is more complex to maintain.