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Setting Up A Company In Malaysia

Introducing L & Co group of companies, a member firm of the Malaysian Institute of Accountants (MIA). Malaysia is known to be one of the top ten countries in the world to do business, due to its steady economic growth which welcomes investment from business owners from all around the world. Malaysia is also a country strategically placed, with strengthening internal stability. With the rise of investment opportunities in this country, the demand for the incorporation of company in Malaysia is rising. 

If you are looking at setting up your own company in Malaysia, the best option for you would be to use the company Sdn Bhd (Sendirian Berhad) structure. The benefits of using this structure outweigh all the other structure benefit advantages, especially because you will not be liable for any loss or damage personally.

L & Co group of companies provide fast, efficient and reliable company registration, accounting, audit and taxation services. It has been awarded as ACCA Approved Employer, CPA Recognised Employer and CIMA Quality Partner. L & Co group of companies is also one of the recommended services providers by Majlis Tandikan Pengguna Malaysia, it located at Major cities of Malaysia (e.g Kuala Lumpur, Johor Bahru, Penang, etc). If you are interested to incorporate a company in Malaysia with SSM (Companies Commission of Malaysia), L & Co group of companies is the licensed accounting firm you can trust and rely on. The entire incorporation process will take approximately 5 working days without any hassle from your end.

Why choose a private limited company? One of the most obvious benefit of a Sdn Bhd company is the financial security that comes with the business. This liability protection to its shareholders means that the shareholders are not liable for the company’s debts beyond the amount of the share capital they have endorsed unless if there are any cases of fraud, deceit or malpractice. Not only limited to shareholders, even as a director you will not be legally liable for the company’s liabilities. Hence, this can provide a relief and a feeling of safety as directors or shareholders do not have to worry about the company’s creditors chasing after them personally for any of the company’s liabilities.

Next, a Sdn Bhd company is considered a separate legal entity. This means that the company is treated as a separate ‘person’ in law, and the company possess almost all powers which any normal person has such as the power to purchase, own or sell assets, the power to enter into contracts, the power to open bank accounts and receive money, the power to sue and sued. Since it is a separate legal entity from its owners, the company will exist beyond the life of its members. The directors, shareholders and employee may come and go, but the Sdn Bhd company will remain in existence until it is dissolved. If any of the company members retire or die, the company will still continue to operate unless the company is wound up or struck off from the register of companies. This in turn will ensure security for employees and other members of the company and regarded as a major advantage which other legal forms of business are not subject to. Hence, a Sdn Bhd company is ideal for long-term succession plans. 
Another important benefit is the taxing benefits as the corporate tax rate is lower than the individual tax rate where the Sdn Bhd company is only subject to the 17% to 24% corporation tax rate. By separating the company’s assets from personal wealth, the total amount of tax that should be paid by a business owner will be lower. Sdn Bhd companies are only taxed on their profits usually at a rate of 24% compared to the rates placed on sole ownership or partnership companies which can reach up to 28%.
One last benefit would be the convenience for private limited companies to raise money than it is for other type of business. For instance, one advantage of the Sdn Bhd is that it has the option of issuing new shares to investors. Any business will need an adequate supply of financial resources and immediate replacement in case of depletion. This enables better opportunities for the Sdn Bhd to expand. In terms of obtaining a bank loan, a Sdn Bhd company is allowed to borrow money at lower rates compared to other type of businesses. For sole ownership, the credit rating depends on owner’s personal wealth and capacity whereas for Sdn Bhd depends on company cash flow, strategy and business prospects. Financial institutions tend to borrow loans to companies as it is less risky compared to other type of business entities.  
 As a potential entrepreneur, you have to look at the bigger picture and decide your advantages from the business before settling on a choice to set up your organization. In spite of the fact that there are moves confronting entrepreneurs to set up an organization, taking care of business from the initial step is principal move before diving in your business adventure.