What is Sendirian Berhad (Sdn Bhd) Company in Malaysia ? BUSINESS OWNERS MUST KNOW
What exactly is a Sendirian Berhad Company ? How does it benefit owners ? Why Business Owners must know ? Let’s read the article below!
By AZIZAM AZIZAN
A Sendirian Berhad (Sdn Bhd) company in Malaysia is a private limited business entity. It can be started by both locals and foreigners. All businesses in Malaysia are required to be registered with the Companies Commission of Malaysia (SSM). The governing body which responsible to oversees the companies operating in Malaysia is SSM.
WHY REGISTER A SENDIRIAN BERHAD IN MALAYSIA?
There are several benefits to starting a business in Malaysia. With country’s strategic location which are close to several other major Asian markets, the World Bank recognized Malaysia as the 18th easiest country in the world to do business in 2016. Foreigners also will enjoy 100% ownership as it is allowed for a Sdn Bhd company in Malaysia.
In addition, things such as capital gains, dividends, royalties and profits will have no restrictions. With low start-up costs and premise rentals, Malaysia is one of the most promising business centres in Asia for foreigners who are looking for their next big opportunity.
WHAT ARE THE BENEFITS OF A SENDIRIAN BERHAD IN MALAYSIA?
Due to so many benefits from its characteristics, Sdn Bhd company stands the most among other business entity when it comes to legal entity as it is separated between owners and company. Furthermore, loan could be acquired as easy as ABC with the establishment of Sdn Bhd. Continuation of business can be carried out under Sdn Bhd companies in Malaysia which
will sustain the lifespan of company until it needs to cease business operations.
With Sdn Bhd company unique separate legal entity, the company liability is limited which means the owner’s personal wealth is protected. As a separate entity, the ownership of the business is transferable, which contributes to its continuous existence. Low-income tax also has been one of its many reasons on why Sdn Bhd company is the best business entity to
incorporate in Malaysia.
OTHER BUSINESS ENTITY OPTIONS IN MALAYSIA
Aside from an Sdn Bhd company, other business entity options in Malaysia include:
i) Partnership
ii) Sole proprietorship
iii) Limited liability
iv) Public limited company
v) Company limited by guarantee