Business Law Assignment | Business Structures

Running head: BUSINESS LAW
Business law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Types of business structures and features..................................................................................2
2.1 Sole proprietorship.................................................................................................................2
2.1.1 Features...........................................................................................................................3
2.2 Partnership.............................................................................................................................4
2.2.1 Features...........................................................................................................................4
2.3 Company................................................................................................................................5
2.3.1 Features...........................................................................................................................5
3.0 Articles of association................................................................................................................6
4.0 Alteration of the Articles of Association...................................................................................7
5.0 Conclusion.................................................................................................................................8
References........................................................................................................................................9

2BUSINESS LAW
1.0 Introduction
A business incorporates each form of trade, craftsmanship, commerce, profession, calling
or other operations used for the purpose of making profit but not employment, office, charitable
undertaking, any specific occupation provided through the schedule of Registration of
Businesses Act 1956 (ROBA 1956). There are many structures which can be used for the
purpose of carrying out business activities. These structures are chosen for the purpose of
business operations with reference to their features. Each business structure has its own unique
attribute which distinguishes it from the other (Lieberman et al., 2016). In Malaysia there are
three types of business structures which can be used to carry out business activities. These
features are namely sole proprietorship which is a form of business run by a single owner, a
partnership which requires at least two or more owner and a company which can be further
classified into public and private company which operates as an artificial legal person. The
purpose of this paper is to identify the different types of businesses which operate in Malaysia
and discuss their features. The paper also analyzes the content of the articles of association in
relation to the company along with the process required to alter the articles.
2.0 Types of business structures and features
2.1 Sole proprietorship
A sole proprietorship is also known through the names of a proprietorship or a sole
trader. This is a kind of business which operates under the ownership of a single natural person.
There is no difference between the identity of the owner and the business in case of a sole
proprietorship and they are one and the same. The direct control of the sole proprietorship lies in

3BUSINESS LAW
the hand of the owner. All elements of the business are controlled by the single owner. The
proprietor is therefore solely responsible for all the finances of the business along with other
forms of accountability. These forms may include accountabilities such as losses, negligence and
debt. In addition the proprietor is also entitled to all the profit made by the business. The
liabilities of a sole proprietorship are therefore unlimited in contrast to the other forms of
businesses.
With respect to a sole proprietorship business the proprietor has the right to use a different
business name other than his or her legal or personal name. The owner in this form of business
structure also has the right to legally trademark the business name but the name must not be
similar to another business.
2.1.1 Features
The registration process in relation to the sole proprietorship business is the easiest as
compared to the other forms of business (Bain & Nowak, 2016). There is not much legal or
procedural complexity involved when it comes to the process of registering a sole proprietorship
business. In Malaysia a sole proprietorship can be registered within 30 days since the business
has started. In Malaysia the registration can be completed online through Ezbiz online services or
SSM counters. The registration can be done easily through filling up the business Registration
Form (Form A). If a person chooses to run the business based his personal name the person
would not need any approval for the name. In case of a trade name the person would need to
follow the rules of Rules 15, Rules of Business Registration 1957. This form of business is very
useful for persons who are staring a small business as it is easy to set up but not for those who
want to carry on large and complex business activities (Allen & Kraakman, 2016). As discussed
above the kind of business provides unlimited liabilities which mean that the business own can