Have you ever thought of starting a business in Malaysia but not sure what type of business entity to register? In Malaysia, the Private Limited Company (Sdn Bhd) is the most popular business entity registered with the Companies Commission of Malaysia (SSM). Incorporating a Private Limited Company in Malaysia can bring about many benefits that may surprise you. In this article, we will explore the top 5 key benefits of registering a Private Limited Company in Malaysia that will leave you jaw-dropping.
Limited Liability Protection 🛡️
One of the greatest advantages of incorporating a Private Limited Company in Malaysia is the limited liability protection it provides to its shareholders. The personal assets of shareholders are protected from the company’s debts and obligations, which means that their risk is limited to the amount of capital they have invested in the company. This provides a sense of security and peace of mind for entrepreneurs, as they can focus on running their business without worrying about their personal assets being at risk.
Credibility and Professionalism 🤵♀️
Incorporating a Private Limited Company in Malaysia can increase the credibility and professionalism of your business. Customers, suppliers and partners often prefer to deal with a registered company, as it provides assurance that the business is genuine and committed. Furthermore, incorporating a company in Malaysia can also help to protect your business name and prevent others from using it.
Easy Transfer of Ownership 👥
A Private Limited Company has a perpetual existence, which means that it can continue to exist even if the original shareholders have passed away or left the company. It also allows for an easy transfer of ownership, as shares in the company can be bought and sold without disrupting the company’s operations. This makes it easier to attract investors and raise capital for your business.
Tax Benefits 💰
Incorporating a Private Limited Company in Malaysia also provides many tax benefits. The corporate tax rate for Private Limited Companies is lower than the personal income tax rate, which can result in significant savings for your business. Additionally, there are many tax incentives available for companies in certain industries, which can help to further reduce your tax liabilities.
Access to Funding 💸
Incorporating a Private Limited Company in Malaysia can also give your business access to funding from banks and financial institutions. Banks and financial institutions are more likely to lend to a registered company with a solid business plan and a proven track record, making it easier to secure funding for your business.
Incorporating a Private Limited Company in Malaysia provides many benefits that are jaw-dropping. From limited liability protection to tax benefits, easy transfer of ownership, access to funding and increased credibility and professionalism, it is no wonder that the Private Limited Company is the most popular business entity in Malaysia. Seeking professional assistance from a corporate service provider such as 3E Accounting Malaysia is highly recommended to ensure a smooth and successful Malaysia company incorporation and SSM registration process. Don’t wait any longer, take the first step towards establishing your dream business in Malaysia today!