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PRIVATE LIMITED COMPANY

What is Private Limited Company (Sdn. Bhd.)

Private Limited Company is the popular choice among company owner for formation of company. Specialty about Private Limited Company is the creation of separate legal entity between owner and the company. In the absence of a dissolution by the Board of Directors or Shareholders of the Company, the Company may acquire property, incur debt, enter into contracts, file or receive legal proceedings on its behalf, and continue in existence in perpetuity.

Advantages of starting a Private Limit Company in Malaysia

• Limited liability. Company owner assets are saved from company debts or loss.
• Foreign ownership. For the majority of company activity, foreign equity can own a corporate entity at 100%.
• Transferable shares. Directly can issue additional share to existing or new shareholder.
• Attractive tax rate. Low corporation tax rates are applied to Private Limited Companies.
• Reputation. In Malaysia, a limited corporation has greater credibility than other types of organizations.

What is required to form a Private Limited Company

• A unique company name. The firm name must be original and unheard of elsewhere.
• At least one shareholder. There must be a foreign or local individual or corporate entity.
• A resident director. A minimum of one director with a primary residence in Malaysia.
• A company secretary. The applicant must be a Malaysian citizen who meets the requirements.
• Address in Malaysia. A local registered business address (Company operation office address).

Steps to starting a Private Limited Company

1. Name search. Performing a name search for a firm at SSM to see if the suggested company name is available.
2. Company registration. Registering a company in Malaysia with assistance of licensed company secretary recognized by SSM.
3. Opening a corporate bank account. In Malaysia, you can open a bank account with any local or foreign bank.
4. Obtaining permits and licenses according to the business nature (Depending on the nature of your services and products, this may or may not apply to your firm).
5. Obey the corporation tax filling requirement with licensed tax agent recognized under Inland Revenue Board (LHDN).
6. Perform annual filling to government such as SSM Annual Return (AR), Financial Statement (FS).