There is a huge opportunity to set up a Private Limited Companies in Malaysia. This country has a good economy. The government of Malaysia also promotes entrepreneurship, competition, and innovation in the workforce. If you are a foreigner then you are also allowed to set up a business in Malaysia.
There are different business entities in Malaysia. The most preferred business entity is a Private Limited Company.
A private limited company in Malaysia is called ‘Sendirian Berhad’. Commonly known as Sdn Bhd. Citizens can set up different types of entities of companies in Malaysia. But if you are a foreigner then a Private limited company is the only type of company you can set up. Foreigners are not allowed to set up a public limited company.
The shares of these companies are privately issued to the owner. The minimum number of shareholders required for a private limited company is 1. The maximum number allowed is 50. The minimum number of directors allowed is 1. If you don’t want then you can hide your financial report of the company. There is no need to hold an annual general meeting.
Sdn Bhd is typically a small or medium-sized enterprise with a straightforward registration process costing only RM1060. The company can own assets, bind contracts as well as sue other entities in court under its own name. This type of entity allows entrepreneurs to keep their finances and assets separately from the business. They are only liable for the amount they have invested.
In Malaysia, there are a lot of advantages to incorporate a private limited company. Some of the advantages are given below:
A Private Limited Company is considered a legal person. So it can purchase assets under its name, bind contract as well as sue another entity in court. Stakeholders’ personal wealth is safe as the debts of the business do not affect the personal assets or finances.
A private limited company can purchase assets such as buildings, land, vehicles, and many more under its name. Stakeholders have no right to claim assets owned by the company.
Shareholders can purchase, sell or transfer their shares to other existing shareholders or potential investors. If there is any change in shareholders, it does not change the companies daily operations.
Private Limited Company can open bank accounts and get loan facilities. It is also possible to get third-party investors to fund the business by offering their shares and planning the dividend.
Incentives like investment tax, pioneer status, and SME Digitalization Grant Scheme are offered to Private Limited Company in Malaysia. It will be a profit-based tax. For the first RM 600000, 17% and a further 24% on the subsequent balance.
There is a large number of businesses and companies registered every day. The list keeps increasing daily as new companies get registered under Sdn Bhd. It is possible to be unable to search for a company. You can search for a specific company in an appropriate business directory. A business company directory is an official website where all the names can be seen. You can search a company by its name or the nature of the business. Official and government websites are considered to be the best source.
Examples of a private limited company in Malaysia can be huge in number. This only shows what Malaysia is capable of. Its vast economy and facilities make it a good option for business. There is a diverse category of companies in Malaysia. Every company is able to grow because of the facilities the government gives.
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