Don't miss out
Subscribe to QuickBooks for only
$1/month for 3 months
Don't miss out
Claim now
April Sale
Buy now and pay only $1/month
for your first 3 months
March into savings Don't miss out!
$1 /monthfor 3 months
Track your expenses as you go and save 11 hours of admin per week
QuickBooks Online $1 /monthfor 3 months
Start fresh this new year
with QuickBooks Online
$1 /monthfor 3 months
Sale ends soon. Don't miss out, sign up today
$1 /monthfor 3 months
Start fresh this new year
with QuickBooks Online
$1 /monthfor 3 months
$1/month
for 3 months
$1/month
for 12 months
When purchased in bundles of 10
50 %off for 3 months
50 %off for 12 months
  • Invoices
  • Expenses
  • Reports
Image Alt Text
Starting a business

What is a Private Limited Company and What are the Benefits?

Malaysia has several legal forms your company can take, but the private limited company is by far the most popular. There are several reasons for this, and depending on how you plan to  run your business, they might be enough to make this form of corporate organisation the right one for you.

Private limited companies have legal advantages over other ways of doing business. For one thing, the law considers them separate entities from their owners. This is true even if you’re the only person who works there. Say your company, a land management firm, buys land. That land, its liabilities and its income, flow through the company, rather than yourself. This has obvious benefits if your business is highly speculative or if there’s a tax advantage to owning the property through the company.

Malaysia’s tax code is also very friendly toward private limited companies. In fact, income for this type of entity is lower than even the personal tax rate citizens pay on their wages. This may be one reason banks are generally more willing to lend to a private limited company. There’s also a certain amount of respect that foreign and domestic trading partners have for the  Sdn Bhd form, which is how your company indicates its status on official documents. This respect is perhaps less tangible than a lower tax rate, but it’s still a major factor driving Malaysians’ choice in corporate forms.

You have several organisational forms to consider when you’re setting up your small business in Malaysia. The private limited option offers plenty of advantages, which is why the majority of local entrepreneurs choose it.

Grow Your Business With QuickBooks