1. Small and Medium companies (SME) are usually incorporated as Sole Proprietorship Companies or Partnership Companies because of their small operations. In the long run these SME's buy disadvantages in terms of taxations and exposure of liabilities by the owners. Discus how SME Companies can transform themselves into corporate entities with greater operations capacity and limited liability in Malaysia Law. 2. Discuss how the companies may reduce their tax burden under the Income Tax Act 1963 of Malaysia