Advantages of setting up a Sdn.Bhd company

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1. Limited Liability

Here you have your personal wealth being protected. It is the obvious reason Malaysians start a limited liability company because there is financial security that comes with the business. The company’s shareholder will only be liable for debts accrued by the company in accordance with their levels of investment and not any more than what they can shoulder. The worst that can happen to you is losing all your capital invested in the company. Ultimately, this gives a sense and feeling of security for investors in the company. Therefore, grab the chance for register a new Sdn Bhd in Malaysia without risking your personal wealth and assets.

2. Separate Entity For Perpetuity

A company is deemed to be a separate legal entity from its owners. Its separate legal entity allows the company to exist beyond its founders, directors or shareholders. Death or retirement from the company will have no effect as the company will continue to exist and operate, until such time that the company is dissolved. It means it has the same rights and obligations as a natural person, to acquire assets, enter into contracts, sue or get sued.
Partnership and sole proprietorship cease to exist upon the death of its owners, this is not the case with a company. This enhances stability, and therefore, plan for long term investment.

3. Separate Entity for Transferability of Ownership

A shareholder of a limited company in Malaysia is allowed to sell or transfer shares, partially or entirely to any desirable person with contractual capacity and is willing to pay a high price. This can be your spouse, family members or any other willing and able party. This is not the case with other entities for instance partnership or sole proprietorship because with them it involves selling the entire business and discontinuing the operation.
Credit: Paul Hype Page

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