About private limited company in Malaysia

In Malaysia, there are vast opportunities to establish a business due to its robust economy and government initiative to promote entrepreneurship, competition and innovation in the workforce. Not only limited to locals, but foreigners are also allowed to set up a company here.

About private limited company in Malaysia


There are different type of company or business entity in Malaysia and a business entity is an organization formed voluntarily to carry out activities of trading goods or services to consumers for profitable gain or charitable purpose. Each organization is determined by its business plan which include the outcome of its operation and main activity.

Most of the business entities are privately owned and administered by few individuals. In Malaysia, one of the most common type of business entity is the private limited company.

Private Limited Company or Sendirian Berhad (Sdn Bhd)

A private limited company by shareholding is known as Sendirian Berhad (Sdn Bhd) Company. This type of company is a separate legal entity from its owners, which means this company is considered as a legal ‘person’ that can buy or sell property, present into legal contracts, sue or get sued in courts of law.

Choosing this type of entity allows an entrepreneur to keep their finances and assets separately from the business. This means that the people who have invested in the business, namely the shareholders, are only responsible for any company debts up to the amount that they have invested and no more. Hence, this type of entity is a good way for a company to get investment without risk to a personal wealth.

While a private limited company is a viable option for most businesses, this one of the most common type of business recommended for foreign owners. Foreigners are allowed to register a Sendirian Berhad (Sdn Bhd) here with 100% foreign ownership, but some industries will need to have 50% Malaysian ownership and these industries include oil and gas, education, tourism, agriculture and banking. If your business falls outside of these industries, then you are eligible to be a 100% foreign owned Sdn Bhd.

Requirements of Establishing a Private Limited Company

In this case, you will still need to fulfil several financial requirements. As for consultancy and advisory business, having a minimum paid-up capital of RM500,000 is required whereas for import, export, restaurant or trading business you will need a paid-up capital of RM1,000,000.

As the Malaysian government is fuelling the need to encourage export growth, knowledge-transfer and employment opportunities in the country, your trade licence will only be approved if your business can promise that it is beneficial to the Malaysian economy. The government also encourages all business owners to employ local citizens.

Like all business types, a Sdn Bhd comes with stringent requirements whereby the company is required to have a minimum of 2 shareholders and 2 directors. Two of the company directors must be permanent residents in Malaysia and the private limited company should have at least 2 to 50 members.

Advantages of a Private Limited Company

On the plus side, incorporating your company as Sdn Bhd comes with advantages such as:
  • Company shareholders are not liable for any company debts beyond their share capital
  • Shares are easily transferable
  • There are no restrictions on the increase of share capital
  • Business continuity, as a Sdn Bhd company will not expire
  • It is easier to acquire a loan
  • Company is considered as a separate legal entity
  • Low risk exposure for income tax
  • Up to 20% of tax saving compared to personal income tax

Upon successful registration, once can expect to reap benefits from this lifelong investment. It is, therefore, important to take note of the key features, requirements, benefits and limitations of having a private limited company before you decide to set up one.

Step 1- Listen to your Business plan and Relocation needs.
Step 2- Analysis your Malaysia Tax Planning
Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa
Step 4- Arrange for your Spouse and Children Visa
Step 5- Assist as your company to hire staffs and handle all HR matters
Step 6- Every financial year end, we assist you with your yearly SSM Finanical and Tax Compliance
Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.

Get in Touch with Us Today.

Comments

Post a Comment

Popular posts from this blog

Ssm company name search in Malaysia

Image
Looking for a guide to conduct SSM Company Search before deciding your company name? You are at the right place. Here’s what you will learn: SSM and Malaysia’s Company Name database Why do we need to conduct the SSM Company search Where to conduct the SSM Company search How to conduct the SSM Company search (Step-by-step) SSM and Malaysia’s Company Name database The SSM (Suruhanjaya Syarikat Malaysia), also known as the Companies Commission of Malaysia is the statutory body formed in Malaysia to regulate companies and businesses that are legally registered and operating in Malaysia. It was formed as result of a merger between the Registrar of Companies (ROC) and the Registrar of Businesses (ROB) in Malaysia. SSM-einfo.my reported that there are a total of 1,267,941 companies registered under Suruhanjaya Syarikat Malaysia (SSM) as of 30th April 2018, with 1,263,165 local and 4,776 foreign companies. 7,062,...
Read more

HOW TO REGISTER A BUSINESS IN MALAYSIA WITH SSM

Image
You want to  start a business in Malaysia  but you have no idea about where to start. Relatable? Yup, that’s how we felt when we first started Kairos. Rest assured, don’t panic. You have come to the right place. Let us guide you on the right path. First of all, you need to register your business or company with Suruhanjaya Syarikat Malaysia (SSM). They handle all the registration for all businesses in Malaysia, no matter how big or small the business may be. The whole process is super simple and we will show you step-by-step on how to go about registering your very own business or company in Malaysia. Without further ado, let’s jump right in. How to Register a Business in Malaysia with SSM: 5 Steps Step 1: Think Of At Least 3 Names for Your Business. šŸ¤” Get your business at least three names. It is recommended that you do not use any of your personal information in any one of them. We suggest using a tradename so that it will look prof...
Read more

SME CONTRIBUTION TO MALAYSIAN GDP RISES TO 38.3%, VALUED AT US$126.3B

Image
Services and manufacturing are major contributors with combined share of 82.4% SME exports increased to RM171.9 billion in 2018 from RM166.2 billion in 2017   Overall performance of small and medium enterprises (SMEs) in Malaysia is on track to achieve the target of 41% to GDP by 2020 as envisaged under the Dasar Keusahawanan Nasional 2030 (DKN 2030) recently launched by the Ministry of Entrepreneur Development. SMEs recorded a higher contribution of 38.3% to GDP in 2018 amounting to US$126.3 billion (RM521.7 billion) as compared to 37.8% amounting to US$117.9 billion (RM491.2 billion) in 2017. Based on data released by the Department of Statistics Malaysia (DOSM) on Aug 1, SMEs registered a growth of 6.2% in 2018 (2017: 7.1%), slightly above the long-term average growth of 6.0% (2001 - 2017). SME GDP growth continued to outperform overall GDP growth of 4.7% in 2018 (2017: 5.7%). In terms of sectorial contribution, the services and manufacturin...
Read more