Can I buy property using my business n= ame?

A.

The answer is YES and NO. Why?<= /p>

If your business is a sendirian berhad= or berhad company, then YES! If your business is a sole-proprietorship or = partnership, then NO!

The new entity is called Limited Liability Partnership (LLP). This entit= y can in fact own property under its name. This is relatively a new thing i= n Malaysia, and some people are using this vehicle to manage their portfoli= o of properties. The administrative fee with LLP is cheaper than Sdn Bhd.

As a sole trader (sole proprietor), th= ere is little distinction between you and the business. Any business liabil= ity becomes your debts. Your personal assets - including your house - are n= ot protected (to pay your debts). So, ABC Enterprise is the same as Mr ABC.= Hence, the property is own by Mr ABC, not by ABC Enterprise.

However, the law says sendirian berhad= or berhad is a =E2=80=98person=E2=80=99 of legal entity. It can sue and be= sued as itself. Hence, sendirian berhad or berhad can own property as like= an individual person. However, a sole proprietor or a partnership is a loo= se association, each individual is an entity of his personal legal person. = So, a sole proprietor or a partnership can only own property as named indiv= idual, not by the business association as above example.

All that is innovative accounting when= tax and cost of administration becomes beneficial when risk is spread out = with a company (investment holding company - IHC). Why? Because company is = ageless. It is perpetually surviving compared to a human - as a going conce= rn. Thus, rich people or investors pass on their properties (estate) to his= descendants by using this vehicle of investment - company. They only need = to transfer the shares of this company (whatever percentage suitable) to th= eir descendants without transferring title of the properties.

However, running a company including a= n investment holding company requires cost. So, unless your assets are siza= ble, it may not be feasible to do it this way.