Form a Private Company (Sdn Bhd)

Why you need to step up a Private Company (Sdn Bhd)?

Setting up a Private Company (Sdn Bhd) is a strategic move for entrepreneurs aiming to capitalise on limited liability for shareholders, enhance business credibility, secure access to funding options, pursue greater growth and expansion opportunities.

 

Company's debt is not your debt

Forming an Sdn Bhd in Malaysia comes with a notable advantage: shareholders are shielded from personal responsibility for the company's debts beyond the extent of their invested share capital.


In the event of the company incurring debt, shareholders are not personally obligated to settle it using their individual assets, unless they have explicitly guaranteed the debt in their capacity as shareholders or directors.


Simply put, the company's obligations remain distinct from the private debts of the shareholders, safeguarding their assets from potential losses arising from the company's activities.

Continuous Company Continuity

Opting for an Sdn Bhd structure implies transferable ownership, ensuring that shifts in ownership, whether due to bankruptcy, death, or resignation, won't lead to the company's dissolution.


In contrast to an Enterprise, Sdn Bhd entities have the flexibility to persist and function seamlessly through the transfer of shares.


This characteristic enhances business continuity and stability, offering a robust framework for sustained operations.

More accessible for a bank loan and Great expansion potential

Setting up an Sdn Bhd company comes with the added benefit of improved access to bank loans and capital investments.


Banks often perceive Sdn Bhd as a trustworthy corporate framework, facilitating companies in securing loans with more favorable interest rates.


The favorable standing of the Sdn Bhd structure not only enhances access to capital funding but also opens doors to lucrative opportunities such as tenders and potential partnerships.


This enhanced financial standing empowers Sdn Bhd companies to establish a stable stream of financial resources, thereby boosting the prospects for business growth and expansion.

Maximise tax savings and to enjoy tax incentive exclusive to Sdn Bhd

Establishing an Sdn Bhd opens the door to substantial tax advantages. SMEs, encompassing Sdn Bhd, may benefit from a tiered tax rate structure, reaching up to 24% in accordance with their chargeable income.


The applicable tax rates fluctuate depending on the amount of chargeable income.


Not only that, exclusive tax incentives and grants are accessible solely to Sdn Bhd companies, providing them a competitive advantage and potentially leading to tax savings.


Leveraging these incentives allows entrepreneurs to strategically position their businesses for sustained success and expansion in the long run.

4 Steps to Form a Private Company (Sdn Bhd)

Congratulations on deciding to incorporate an Sdn Bhd company! 

We are thrilled to guide you through the process to achieve your objectives. The series of steps is as follows:

Step 1

Preliminary Interview - Let us understand your needs

It commences with your initial call to us. During our meeting, share your thoughts and plans with us.

Step 2

Quotation Preparation - Sign and return our quotation

We will prepare and send you a quotation with details of the scope of work and our price. If you are agreeable, you are to sign and return us the quotation.

Step 3

Application Preparation - Submit your application

We will request the documents required from you. Then, we will help to prepare the forms and supporting documents and submit them to SSM, along with settling all applicable application fees.

Step 4

Approval - Settle the rest for you

Once your application is approved, you will need to appoint a company secretary within 30 days. Futhermore, you are advised to get all business licences needed before your company begins operating.
If you would like, we could help you with those as well.

The entire process can be done within 3 working days!

How is pricing determined for this service?

The fee for incorporating a Sdn Bhd company, is dependent the amount payable for statutory fees to SSM and also on our service to help you draft a company’s constitution. The company’s constitution is optional.

However, if you require our assistance to obtain business licenses and trademarks, we may assist in those tasks as well, with additional charges.