step-by-step to REgistering a new company
The first step to setting up a company is to consider the type of entity that will suit your business needs.
The type of entity/ business structure chosen is important as a first step to being an entrepreneur. The type of structure chosen will affect how much tax you pay, perception of your business among your clients, the extent of your personal liability and ability to borrow from the banks to grow your business.
Among the many different type of entities, a private limited company (Sdn Bhd) offers the most flexibility, recognition and protection to its owners. It is the preferred structure due to the following reasons:-
Limited Liability. Such a company is a separate legal entity, your personal assets are protected from your business liabilities.
Perpetual Existence. As the company is a separate legal entity from its owner, it will continue on perpetually, even if the owner passes away thus ensuring continuity of the business.
Image and Confidence. A company portrays a professional image to your potential business partners and shows confidence that the business is a long term business. This is also banks' preferred structure.
Tax. The corporate tax rate for companies in Malaysia is 24%. However, relief is given to companies with paid-up capital of less than RM2.5 million to pay a lower tax rate of 17% on the first RM500K of its chargeable income. Compared to individual tax rates of 24% for chargeable income above RM100K, this is attractive if your current income exceeds RM100K.
The only disadvantage to incorporating a private limited company (Sdn Bhd) is the annual compliance. For small set-ups, these compliance works are usually outsourced to service provider such as RISS as it is more cost effective than maintaining an in-house personnel.
Find out more about setting-up a private limited company (Sdn Bhd)
Should you wish to register other type of entities, please e-mail us for quotation and we shall be glad to assist you.
The type of entity/ business structure chosen is important as a first step to being an entrepreneur. The type of structure chosen will affect how much tax you pay, perception of your business among your clients, the extent of your personal liability and ability to borrow from the banks to grow your business.
Among the many different type of entities, a private limited company (Sdn Bhd) offers the most flexibility, recognition and protection to its owners. It is the preferred structure due to the following reasons:-
Limited Liability. Such a company is a separate legal entity, your personal assets are protected from your business liabilities.
Perpetual Existence. As the company is a separate legal entity from its owner, it will continue on perpetually, even if the owner passes away thus ensuring continuity of the business.
Image and Confidence. A company portrays a professional image to your potential business partners and shows confidence that the business is a long term business. This is also banks' preferred structure.
Tax. The corporate tax rate for companies in Malaysia is 24%. However, relief is given to companies with paid-up capital of less than RM2.5 million to pay a lower tax rate of 17% on the first RM500K of its chargeable income. Compared to individual tax rates of 24% for chargeable income above RM100K, this is attractive if your current income exceeds RM100K.
The only disadvantage to incorporating a private limited company (Sdn Bhd) is the annual compliance. For small set-ups, these compliance works are usually outsourced to service provider such as RISS as it is more cost effective than maintaining an in-house personnel.
Find out more about setting-up a private limited company (Sdn Bhd)
Should you wish to register other type of entities, please e-mail us for quotation and we shall be glad to assist you.