5 Key Benefits of Setting Up an Sdn Bhd in Malaysia

Posted March 16, 2021 by kelvintan

In this article, you'll learn about benefits of setting up company in Malaysia

Malaysia, March 16, 2021— Bestar Consulting, a top-rated business consulting services agency in Malaysia, highlights five main advantages of registering an Sdn Bhd company in Malaysia.

A Sendirian Berhad Company (Sdn. Bhd.) is a private limited company governed by the Companies Act 2016. It is the most common business entity in the country and provides many benefits.

One key benefit of incorporating an Sdn Bhd company is that it has limited liability. “An Sdn Bhd company protects the personal wealth of shareholders. They will not be liable for any of the company’s liability since they have not provided a guarantee to any liabilities the company faces,” stated Mr Jason Wong, the leader of Bestar Consulting.

Mr Jason further added, “The financial security that his business model offer is also appealing to many business owners; company shareholders shall not lose any amount of money beyond the capital they have spent in the company.”

Having the status of a separate entity is another benefit of this business entity. “An Sdn Bhd company is considered a distinct legal entity from its owners, allowing the company to operate regardless of the directors’ or shareholders’ identities,” said Mr Jason.

“Unlike sole proprietorships and partnerships companies, Sdn Bhd companies will continue to operate without being affected by retirements or deaths unless they are dissolved. The company also has the right to obtain assets, enter into contracts, and to sue or be sued,” explained Mr Jason.

Moreover, business owners can benefit from an Sdn Bhd company through its ease of ownership transfer. “ A limited company’s shareholder can sell or transfer shares to any person he or she chooses as long as the prospective buyer can afford the shares. This is not the circumstance with a sole proprietorship or partnership since doing so would involve selling the whole business and discontinuing the operation,” stated Mr Jason.

Besides, when setting up an Sdn Bhd company in Malaysia, business owners can get better access to capital funding. “Securing enough supply of financial resources is relatively easy when for an Sdn Bhd company. Business owners can raise money either by issuing share certificates or bonds to investors. Shd Bhd companies can also get a business loan from the bank at a comparatively lower rate than other business entities. Furthermore, the chances of getting approved for a business loan are fairly higher for Sdn Bhd companies as financial institutions tend to view these companies as less risky,” said Mr Jason.

Last but not least, business owners can obtain various tax benefits when registering an Sdn Bhd company. The corporate income tax rate for this company type is generally lower than the individual tax rate since it is only taxed according to its revenue and is not obliged to pay any additional taxes.

Bestar Consulting is a professional agency that offers comprehensive business solutions and services for company registration in Malaysia.
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Issued By Bestar Consulting
Phone +60340652138
Business Address Kuala Lumpur, Malaysia
Country Malaysia
Categories Accounting
Tags company registration in Malaysia , company registration , Business Registration
Last Updated March 16, 2021