An enterprise is a business registered with Registration of Business and is governed under Registration of Business Act. An enterprise is simple and easy to register, many business owners are attracted to its simplicity and convenience, yet having full control of the business income. It is only available for Malaysian citizens or permanent residents (PRs). In the event where the business is to declare bankrupt or has outstanding creditors of huge amounts, the business creditors are able to go after the owner of the business and his or her personal finances and assets.

A Sdn Bhd is a company registered with the Registration of Companies and is governed under Companies Act. Unlike an enterprise, a Sdn Bhd is a limited entity and is separated from the owner(s) – which means the shareholders have limited liabilities and are only responsible for any company debts up to the amount that was invested and the funds in the company. It can have a minimum of one shareholder to a maximum of 50 shareholders. This business entity is open to non-Malaysians who are interested to venture their business in Malaysia.