No doubt, there isn’t any shortage of business opportunities in Malaysia. However, in order to avail of these opportunities and benefits, you must choose the type of company wisely. For instance, an Sdn Bhd company offers maximum advantages to businesses that allows them to grow and flourish.
Don’t know about the registration of Sdn Bhd Company in Malaysia? Check out our blog on how to register a Sdn Bhd Company in Malaysia.
The overall structure of this particular company ensures the best possible flexibility when managing your business. If you are intended to invest in Malaysia, just take into account the advantages associated with an Sdn Bhd company.
To assist you in this regard, here are some of the most prominent advantages of having a Sdn Bhd company in Malaysia.
Sdn Bhd is dealt as a separate legal entity
The first and foremost benefit of Sdn Bhd company is its ability to sustain itself as a separate legal entity. Hence, it can continue to survive on its own, irrespective of the identities of its directors, founders, or shareholders.
This suggests that if a director or founder of the company dies or retires, it won’t stop Sdn Bhd company from its operation. The company would stay intact until dissolved. This particular feature of an Sdn Bhd company distinguishes it from sole proprietorships and partnerships.
As a result, Sdn Bhd serves as a more stable company. The company is capable of acquiring assets, can sue or be sued, and create agreements.
Financial security of owners personal wealth
Being a limited liability, Sdn Bhd helps to save the personal wealth of the founder if unfortunately the company is declared bankrupt. This is the reason why a wide range of local and foreign people prefer an Sdn Bhd company to start their business in Malaysia.
The shareholders of such a company are liable to pay their debts but the amount won’t exceed the total value of their respective investments. Hence, no one would lose the amount beyond the invested capital.
Opportunity to launch capital funding schemes
An Sdn Bhd company can easily gain required capital through a variety of funding schemes including share certificates or bonds. This benefit allows the company to grow and expand without facing any issue of limited funds.
Lucrative Tax Benefits
These companies also offer some tax benefits. Such a company is taxed only on profit. Meaning thereby, these companies are not supposed to pay any kind of additional taxes. Furthermore, an Sdn Bhd company is capable of claiming expenses i.e entertainment, travel, and charitable donations.
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Ability to Transfer Shares
Being a shareholder of an Sdn Bhd, you will be fully authorized to transfer or sell the shares to any person. You can’t avail of this feature while running a sole proprietorship or partnership.
Minimum travel expenses
An Sdn Bhd company can choose to set up its business in any preferred location. Hence, make sure to select a place that lowers the overall cost of doing business by incurring minimum travel expenses.
Freedom to distribute revenue without any restrictions
In addition, you can distribute its revenue without any restrictions. You can allot sufficient funds to a person or organization if you find it appropriate. It’s the privilege of a company’s owner to decide about the salaries, bonuses, and dividends.
If you have made up your mind to opt for an Sdn Bhd company, it would serve as a viable decision. However, you need to prepare your business in such a way that it can correctly utilize all the available resources.
An Sdn Bhd company offers numerous benefits like limited liability, tax benefits, transferability of shares, and the ability to sustain as a separate entity. Therefore, if you want to draw maximum benefits through this type of company, it would be appropriate to be aware of its true advantages.