Malaysia is now gaining traction as one of the best investment hubs to do business in Asia. Though its high ranking in the World Bank’s Ease of Doing Business, t signifies that starting a business in Malaysia is not that difficult.
Private Limited Company (Sdn. Bhd.) registration is one of the popular legal business structure option in Malaysia. Private Limited Company (Sdn. Bhd) is governed by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) and Companies Act 2016. To register a Private Limited Company (Sdn. Bhd.), a minimum 1 member (shareholder) and 1 director (ordinarily reside in Malaysia by having a principal place of residence in Malaysia) are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be shareholder.
Below are the reasons why you should start a Sdn. Bhd. company in Malaysia now:
1. Malaysia tax deductions on renovation and refurbishment
In addition to the RM20,000 tax rebate, the Malaysian Government has also announced that renovation and refurbishment expenses totaling up to RM300,000 and spent in 2021 can enjoy a special tax eduction, which translates to approx. RM50,000 to RM70,000 in tax savings (depending on the tax bracket of company corporate taxes). In the past, LHDN generally allowed these expenses to be claimed only via capital allowance if these expenses met the conditions.
2. Availability of various grants and loans
Many grants and loans are also given out to Small-Medium-sized Enterprises (SMEs) as part of the efforts to rejuvenate the economy and many of the grant or loan qualifying terms would require the entity o be anf Sdn Bhd in order to be eligible to apply for these grants and loans
Learn more about starting a Sdn. Bhd. company in Malaysia at this WeCorporate blog.
