Enhanced Credibility:
Incorporating a private limited company (Sdn Bhd) enhances the business's credibility, signaling professionalism and stability. It can improve trust with clients, investors, and suppliers.
Limited Liability:
Shareholders enjoy protection as their personal assets are separate from the company's liabilities. This means debts incurred by the company do not extend to personal wealth unless fraud or personal guarantees are involved.
Tax Benefits:
Sdn Bhds are eligible for tax incentives and preferential tax rates. SMEs in Malaysia with taxable income of up to RM150,000 benefit from a lower tax rate of 15% (effective YA 2024).
Striking Off a Company
Why Strike Off?:
If your company is no longer active or operational, applying for a strike-off under Section 550 of the Companies Act 2016 can save you from incurring annual maintenance costs (e.g., secretarial fees, filing fees, tax compliance).
Avoid Penalties:
Dormant companies that fail to comply with statutory requirements, such as filing annual returns or maintaining proper records, can face penalties and fines. Striking off ensures you avoid these legal consequences.
Application Process:
The company must meet specific conditions, such as being inactive, having no liabilities, and obtaining the agreement of all shareholders. The process involves applying to the Companies Commission of Malaysia (SSM).
Would you like a detailed guide on either company registration or the strike-off process?
DSA Corporate Secretarial Services Sdn Bhd 202001018475 (1374795-M)
15-17, Menara Mutiara Central, 2, Jalan Desa Aman 1, Cheras Business Centre, 56000 Cheras, Wilayah Persekutuan Kuala Lumpur, Malaysia.