Principle and concept of business ownership, including factors that are influence the choice of ownership, types, characteristics of each business ownership, advantages and disadvantages, the differences of business ownership and the procedure of business ownership registration and business support agencies.

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BUSINESS OWNERSHIP &
SUPPORT SYSTEM
by Mohd Zaini Zainudin
CHAPTER 3
MPU22012 – ENTREPRENEURSHIP
POLYTECHNIC VERSION

2. MOHD ZAINI ZAINUDIN
LECTURER
Hi Everyone, you are in Entrepreneurship MPU22012 class!
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Principle and concept of business
ownership, including factors that are
influence the choice of ownership, types,
characteristics of each business ownership,
advantages and disadvantages, the
differences of business ownership and the
procedure of business ownership
registration and business support agencies.
INTRODUCTION

3. TOPIC OUTLINES
Upon completing this course, students
should be able to :
1. Identify the types of business ownership in Malaysia.
2. Discuss the registration procedures of business ownership.
3. Discuss the entrepreneurship support system.

4. Upon completing this course, students
should be able to :
1. propose the value proposition of entrepreneurial idea using Business model Canvas. (A3,
CLS 3B)
COURSE LEARNING OUTCOMES

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BUSINESS OWNERSHIP & SUPPORT SYSTEM
TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
TYPES OF
BUSINESS
OWNERSHIP IN
MALAYSIA

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
TYPES OF
BUSINESS
OWNERSHIP
SOLE
PROPRIETORSHIP
PARTNERSHIP
GENERAL
PARTNERSHIP
LIMITED
PARTNERSHIP
CORPORATIONS
PRIVATE LIMITED
COMPANY
PUBLIC LIMITED
COMPANY

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
01
SOLE
PROPRIETORSHIPS
Simplest business structure
• Minimal legal requirements – Business Act 1956
(Amendment 1978) And The Procedures Of
Business Registration 1957)
• Solely owned
• Operated by one individual
• Can have large number of employees

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
01 # Sole Proprietorships.
“ • Business owned (and usually operated) by
ONE PERSON.
• SIMPLEST FORM of business ownership.
• MOST POPULAR form of business organization –
72.2% of all.
• Minimum legal requirements under BUSINESS
REGISTRATION ACT 1956 (Amendment 1978)
and THE PROCEDURES OF BUSINESS
REGISTRATION 1957 (ROB).
EXAMPLE :
• Tailors
• Beauty salons
• Restaurants
• Mini market

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ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP
SOLE
PROPRIETORSHIPS
01 02 03
ADVANTAGES
• Ease of formation.
• Total independence in decision
making / freedom of choice complete
control.
• Full and total responsibility.
• Retaining all business profits.
• No requirement for authorization and
disclose of financial reports.
• Taxation advantage.
• Fewer legal restrictions.
• Unlimited liability.
• Lack of continuity.
• Lack of experience and ability.
• Incurs all loses.
• Limited access to funds.
• Limited skills.
• Long working hours.
• Relative difficulty in obtaining long
term financing.
DISADVANTAGES

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
02
PARTNERSHIP
Owned by at least two or max 20 persons
• Formed under Business Act 1956 (Amendment
1978) And The Procedures Of Business
Registration 1957). – only Malaysian citizens or
permanent residents can register partnership.
• Owners = partners
• Each partner contributes > money, labour, skills ;
share profits or loses
• Recommended to prepare an agreement on
the articles of partnership.
• Eg. Klinik Dr Zaini dan Dr Nadia
2 TYPES OF PARTNERSHIP
i. General Partnership
ii. Limited Partner

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
02 # Partnerships.
“ • Owned by at least 2 OR MAX 20 PERSONS.
• Formed under BUSINESS ACT 1956
(AMENDMENT 1978) and THE PROCEDURES
OF BUSINESS REGISTRATION 1957 (ROB).
• Only Malaysian citizens or permanent
residents can register partnership.
• Owners = partners. Each partner contributes
> MONEY, LABOUR, SKILLS ; SHARE PROFITS or
LOSES.
• Recommended to PREPARE AN AGREEMENT
on the articles of partnership.
TYPE OF PARTNERSHIP :
# General Partnership
• Unlimited Liability for debts
• General partner manages
company, receives salary
and share company’s profits
or loses.
# Limited Partner
• Share the firm’s profits or loses
but do not take an active role
in managing the company
and share company’s profits
or loses.

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ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP
PARTNERSHIP
01 02 03
ADVANTAGES
• Increase in resources for capital.
• Distribution and sharing of business
risks.
• Direct rewards.
• Taxation advantage.
• Combined talents and business
acumen.
• Ease of formation.
• Ability to specialize.
• Unlimited liability.
• Limited life span.
• Lack of continuity.
• Shared profits.
• Shared control.
• Conflict.
DISADVANTAGES

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
03
CORPORATIONS
Considered a separate legal entity
• Owners called “Stockholders” or Shareholders”
• Ownership evidenced by “Stock Certificate”
• Governed by “Board of Directors”
2 TYPES OF CORPORATION
i. Private Limited Company
ii. Public Limited Company

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
Private Limited Company
i
• Company limited by shares
• Owned by a group of people ( 2 or more – not >50 )
• “Limited” – separate entity/has own legal identity
• Owners/shareholders will elect the BOD – responsible for establishing the
general policies, appoint president.
• Name ends with ‘Sendirian Berhad’ or ‘Private Limited’ with its
abbreviation ‘Sdn.Bhd.’ or ‘Pvt.Ltd.’

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TYPES OF BUSINESS OWNERSHIP IN MALAYSIA
Public Limited Company
ii
• Company limited by shares
• Owned by a group of people ( 7 or more – no max. limit )
• Source their capital by selling shares to public
• “Public” – shares can be easily purchased/sold by investors
• Can be listed or unlisted in on the stock exchange
• Name ends with ‘Berhad’ or ‘Limited’ with its abbreviation ‘Bhd.’ or ‘Ltd.’

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ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP
CORPORATIONS
01 02 03
ADVANTAGES
• Limited Liability - Limited to the capital
contributed/investment.
• Ease of Ownership Transfer.
• Perpetual life- Not dependent upon the
ages or resignation of members.
• Greater Access to Capital
• Easily acquired by exchanging
shares ownership
• Loan
• Public Limited Co – increase
capital through issuance of bonds.
• Management Expertise - Have BOD.
• More difficult & costly to form
• High set up cost
• Cost included charge to authorized capital,
professional fee, filing charges, printing of
Memorandum of Articles and Articles of
Association, shares certificate, company seal.
• High taxation.
• For private limited company, have limited
members.
• For private limited company, they have lack of
freedom in transferring ownership – subject to
BOD’s approval.
DISADVANTAGES

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BUSINESS OWNERSHIP & SUPPORT SYSTEM
REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP
REGISTRATION
PROCEDURE FOR
BUSINESS
OWNERSHIP

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REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP
STARTING A SOLE PROPRIETORSHIP/PARTNERSHIP
Business includes every form of trade, commerce, craftsmanship, calling,
profession or other activity carried on for the purpose of gain, but does not include
any office or employment or any charitable undertaking or any occupation
specified in the Schedule of the Registration of Businesses Act 1956 (ROBA 1956) &
ROBA Rules 1957.
Two (2) type of Business:
Sole proprietorship:
Business wholly owned by a single individual using personal name as per his / her
identity card or trade name.
Partnership:
Business owned by two or more persons but not exceeding 20 persons. Identity
card name can’t be used as business name.

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REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP
STARTING A SOLE PROPRIETORSHIP/PARTNERSHIP
How to start a business?
1. Registration of a new business to be done within 30 days from the date of commencement
of the business.
2. Registration can be done at any SSM counter or through online via Ezbiz Online services at
ezbiz.ssm.com.my.
3. Complete the Business Registration Form (Form A). Refer to Guidelines For New Business
Registration. Business may be registered using personal name or using a trade name.
i. Personal Name - Business name using personal name as stated in the identity card is not
required to apply for business name approval.
ii. Trade Name - Complete business name approval form (Form PNA.42). Refer to
Guidelines for Business Name Application.
4. Business names approval is according to Rules 15, Rules of Business Registration 1957.
5. Business Registration can be made for a period of one (1) year and not more than five (5)
years.

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REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP
STARTING A SOLE PROPRIETORSHIP/PARTNERSHIP
Who can submit Form A?
The owner/All partners
Fee CHARGE
1. Trade Name – RM60 per year
2. Personal Name - RM30 per year
3. Branch (s) - RM5 per year for each branch
Validity certificate of registration
Registration of Business Act 1956 Validity Certificate of Registration Issued Using A4 Paper

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REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP
Ý
Road Map
registration

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REGISTRATION PROCEDURE FOR BUSINESS OWNERSHIP
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global
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open
pro
fun
http://www.ssm.com.my/
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HERE

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ENTREPRENEURIAL NETWORKING AND SUPPORTING AGENCIES
BUSINESS SUPPORT AGENCIES
BUSINESS
SUPPORT
AGENCIES

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BUSINESS SUPPORT SYSTEM
8
B
S
S
# 1. FINANCIAL SUPPORT
# 2. TECHNICAL AND TECHNOLOGICAL SUPPORT
# 3. ENTREPRENEUR AND MANAGEMENT TRAINING
# 4. EXTENSION AND ADVISORY SERVICES
# 5. INFRASTRUCTURE SUPPORT (LOCATION AND PREMISE)
# 6. MARKETING SUPPORT
# 7. RESEARCH AND PROJECT RECOGNITION
# 8. INFORMATION SUPPORT

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BUSINESS SUPPORT SYSTEM
1
FINANCIAL
SUPPORT
• Financial credits
• Fixed assets financing
• Establishing factory
• Buying office equipment, machinery etc
AGENCY FINANCIAL FACILITY
MARA • Financial credits and equipments to SME entrepreneurs
Commercial Banks
• Financial credits allocated by Central Bank of Malaysia (BNM)
to qualified applicants
BPIMB
(Bank Pembangunan dan Infrastruktur
Malaysia Berhad)
• Financial credits to industrial business
MIDF
(Malaysian Industrial Development Finance
Berhad)
• Fixed assets financing to manufacturers
AGRO Bank Malaysia
(Bank Pertanian Malaysia)
• Financial credits and equipment to agriculture-related
industries

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BUSINESS SUPPORT SYSTEM
2
TECHNICAL AND
TECHNOLOGICAL
SUPPORT
• Entrepreneurs increase technical knowledge by
attending educational courses
• Exposed to the latest production methods and
systematic management
• Several different scheme such as development of
product quality using technology
AGENCY TECHNICAL ASSISTANCE
PORIM
(Palm Oil Research Industry Malaysia)
• Develops quality products using the latest technology advancement
FRIM
(Forest Research Institute of Malaysia)
• Promotes sustainable management and the optimal use of forest
resources by generating knowledge and technology through
research, development and application
MIMOS
(Malaysian Institute of Microelectronic
System)
• Promotes innovation in information technology. Strives to be premier
applied research centre in frontier technologies

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BUSINESS SUPPORT SYSTEM
3
ENTREPRENEUR AND
MANAGEMENT
TRAINING
• To train entrepreneurs obtain
necessary skills
• Build entrepreneur’s confidence
and give encouragement
AGENCY ENTREPRENEUR AND MANAGEMENT TRAINING
MARA
(Majlis Amanah Rakyat)
• Provides training and guidance to SME entrepreneurs so that they are
highly skilled in their area of interest
MEDEC
(Malaysian Entrepreneurship
Development Centre)
• Plans and implements entrepreneurship development programmes
such as training, education, research and consultancy
SEDC
(State Economic Development
Corporation)
• Its general aims is to provide and promotes commercial, industrial
and socio-economic development in the states
NPC
(National Productivity Corporation)
• Provides training in enhancing quality and productivity, consultation
services and guidance in Total Quality Management (TQM)

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BUSINESS SUPPORT SYSTEM
4
EXTENSION AND
ADVISORY SERVICES
• Agencies involved in consulting
and monitoring the implementation
of project
• To ensure no interruption in the
business progress
AGENCY EXTENSION AND ADVISORY ASSISTANCE
MARA
(Majlis Amanah Rakyat)
• Apprenticeship Training Scheme, Technical Entrepreneurs Programme
(Technopreneurs)
MPOB
(Malaysian Palm Oil Board)
• Technical Advisory Services
FAMA
(Federal Agricultural Marketing
Authority)
• Enhancement of Product Image and Presentation, Vendor
Programme, Development of Quality Product
DOA
(Department of Agriculture)
• Follow-up on entrepreneurial training and development programme

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BUSINESS SUPPORT SYSTEM
5
INFRASTRUCTURE
SUPPORT
• Provide suitable business location or
equipped premise including utilities
• To reduce the entrepreneur’s
problem related to location and
premise
AGENCY INFRASTRUCTURE ASSISTANCE
MARA
(Majlis Amanah Rakyat)
• Provides business sites to carry out business activities
UDA
(Urban Development Authority)
• Provides and caries out projects at urban settlements in term of
development, housing, commercial and industrial issues
SEDC
(State Economic Development
Corporation)
• Develop basic utilities and areas like pathway and recreational
facilities

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BUSINESS SUPPORT SYSTEM
6
MARKETING
SUPPORT
• Support services in marketing distribution
• To help entrepreneur market his product
locally and internationally
AGENCY MARKETING ASSISTANCE
FAMA
(Federal Agricultural Marketing Authority)
• Markets agricultural products locally and abroad
MATRADE
(Malaysian External Trade Development
Corporation)
• Exposes the entrepreneur to available business
MITI
(Ministry of International Trade and
Industry)
• In charge of affairs related to foreign trade, high technology,
environmental protection and industrial location, energy and
other areas

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BUSINESS SUPPORT SYSTEM
7
RESEARCH AND
PROJECT
RECOGNITION
• Helps entrepreneur to carry out research
• Research and analysis will be performed include project
possibilities, marketing research and research on technology
• Helps entrepreneur to increase efficiency and as well as
better quality products
AGENCY RESEARCH ASSISTANCE
MARDI
(Malaysian Agricultural Research and
Development Institute)
• Carries out research on the output of agricultural products, improves
the quality of agricultural products and produces new seeds for
farmers
RRIM
(Rubber Research Institute Malaysia)
• Carries out research on the quality of rubber and produces new
rubber-based products
MPOB
(Malaysian Palm Oil Board)
• Carries out research on products produced from the output of palm
oil, spreads over the market of palm oil and improves the quality of
palm oil
SIRIM Berhad
(Standard and Industrial Research
Institute of Malaysia)
• Focus on discovering and developing new technologies to enable
industries to move up the value chain

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BUSINESS SUPPORT SYSTEM
8
INFORMATION
SUPPORT
• Offered to entrepreneur in the form of business
opportunity, statistics, discovery, research and
development and technological development
• Most of agencies have their own collection of
information for general usage
AGENCY INFORMATION SUPPORT
FRIM
(Forest Research Institute of Malaysia)
• Provides research and development, transfer of technology and
testing services for the forest and timber industry
MIDA
(Malaysian Industrial Development
Authority)
• Provides information on business opportunities such as investment,
trade, finance, productivity pertaining to manufacturing and service
sectors and facilitates companies who are looking for joint venture
partners and promotes and coordinates the industrial development in
Malaysia
MATRADE
(Malaysian External Trade
Development Corporation)
• To organize training programmes to improve the international
marketing skills of Malaysian exporters
SIRIM
(Standard and Industrial Research
• Ensures the quality of local products, penetrates the market
potentiality and provides information on new discoveries in

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34. THANKS!
34
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