Top 10 Advantages of Forming a Sdn Bhd Company in Malaysia

The Sdn Bhd is the most commonly utilized business entity by entrepreneurs in Malaysia. Incorporating a Sendirian Berhad (Sdn Bhd) in Malaysia offers numerous benefits for businesses and entrepreneurs. Here are the top 10 advantages:

1. Limited Liability

The most significant benefit of a Sdn Bhd is the limited liability protection it offers. Shareholders are only liable for the company’s debts up to the amount of share capital they have contributed. This means that personal assets of the shareholders are protected in the event of the company’s insolvency.

2. Perpetual Succession

A Sdn Bhd has a separate legal entity distinct from its shareholders and directors. This means the company can continue to exist even if the shareholders or directors change. This provides stability and longevity to the business, ensuring that it can continue to operate and grow over time.

3. Credibility and Brand Image

Incorporating a Sdn Bhd enhances your business’s credibility. Customers, suppliers, and investors may perceive an incorporated company as a more stable and reliable entity compared to a sole proprietorship or partnership. This can lead to increased business opportunities and partnerships.

4. Access to Financing

Banks and financial institutions are more likely to extend credit facilities to Sdn Bhds as most of the Sdn Bhds will be audited by an independent auditor. Moreover, a Sdn Bhd can also raise capital by issuing shares to the public. This can provide the necessary funds for business expansion and growth.

5. Tax Benefits

A Sdn Bhd is taxed at a corporate tax rate, which can be lower than the personal income tax rate. Additionally, a Sdn Bhd can also enjoy various tax incentives, deductions, and exemptions. This can result in significant cost savings for the business.

6. Ownership Transfer

Shares in a Sdn Bhd can be easily transferred, making it simpler to sell the business or bring in new investors. This provides flexibility in terms of business ownership and can facilitate business expansion and succession planning.

7. Business Continuity

A Sdn Bhd has a perpetual existence. It continues to exist even if the shareholders or directors pass away or leave the business. This ensures business continuity and can provide peace of mind for stakeholders.

8. Ability to Enter Into Contracts

As a separate legal entity, a Sdn Bhd can enter into contracts in its own name. This includes contracts for employment, supply agreements, and more. This can provide greater legal protection for the business.

9. Professional Image

Incorporating a Sdn Bhd can enhance your business’s professional image. It can help attract high-quality clients, employees, and investors. This can contribute to the overall success and growth of the business.

10. Greater Control

Shareholders of a Sdn Bhd can exercise greater control over the business. They can influence business decisions through their voting rights at general meetings. This can ensure that the business is run in accordance with the shareholders’ vision and objectives.

Incorporating a Sdn Bhd in Malaysia can be a strategic move for entrepreneurs looking to grow their business. However, it’s important to seek professional advice to understand all the legal and regulatory requirements involved. A professional company secretarial can guide you through the process and ensure that your business complies with all relevant laws and regulations.

Our services include:

• Advisory services for new company registration and incorporation in Malaysia
• Incorporation and registration services for public and private limited companies and enterprises
• Strike Off Company Services
• Monthly corporate advisory services such as prepare resolutions, record minutes of meeting & maintain statutory books, filing of annual returns, track filing deadlines and attend to your specific business needs.
• Registered office provision