Is It a Must to Register for a Company?

Travel Info
Is it a must to register for a company if I have a dot com business? Revenue generated from Ads and services.

Travel Tips

If you want a straight answer .. Then its a definate NO. However if you are serious about starting this business please read on and the answer is you should.

Earning money on the net does not mean you will need to register a company and that apply to real life business too. There is pros and cons to both.

IRL ( In real life) if you design ads or cut hair or provide what ever service as a freelancer you need not register. However if you do and customers would like you to do so, you will appear to be more serious in your business. Apart from the simple appearance, you are allowed to operate business accounts with banks and apply for business loans. On certain cases you will be entitled for grants and protection from the laws. On the down side, you will have some book keeping to do and declare your earnings.

In malaysia there is two types of registration for business, a company and a partnership. A company generally means you a incooperating a legal entity. legal entity simply means that it is accountable by itself and not the directors or shareholders. A partnership sometimes refered to as enterprise simply means an agreement to do business and share profit but it is not recognised by law as a legal entity. Therefore the owners are accountable for all the legalities.

Now, all that mumbo jumbo means, if you do not want to be sued personally get a company, willing to take the risk or the risk is small, register a partnership. Of course a partnership is easy to incoperate and a company ( sdn bhd) is harder and cost more.

Benefits other than that, a company can be sold and can be transformed into a public listed company and generally have more value than a partnership.

Now, a dotcom company in your case, if you have partners I would suggest to register a partnership first, there is a limit of partners you can have and you cannot sell shares to the company or call yourselves company director.

I hope that helps. For further info please do read up on parnership and company registrations. Do not take it lightly as you cannot just abandon the company when it does not work as you may get into legal complications at a later date.

Good luck Source(s): Own experience and training
Other Travel Tips

yes its a must
yes but you dont have to register sdn.bhd. you can go for enterprise company which cost you about RM 100 for registration.
It all depend on how big is your business?

If that is your sole income, you might have problem when you intend to purchase some asset like house or new car.
Income Tax Depart will come & check on you.

I would advise to register a enterprise company (sole propietor) which registration fees is RM60 per annum.
Get a good Tax agent for your income tax, which might cost you around RM500 per annum.
Keep all your expenses bill (whatever you can have) & hand it over to your tax agent at the end of the year.

Good Luck.