Source from bas.com.my
There are few different methods in legal structure to register your new venture or company in SSM Malaysia:
A) (LLC )Limited Liability Company also know as Sendirian Berhad (Sdn. Bhd.) in Malaysia
B) (LLP) Limited Liability Partnership
C) Partnership or Individual Company (Sole-proprietorship)
The size and scalability of your business is important as the type of registration would be based on your business.
Option A would be the best recommendation to register a Limited Liability Company (Sdn. Bhd.) as it offers:
- A vehicle for your business to a separate entity legal structure and it protects your personal wealth and end up with the company having a limited liability up to its paid-up capital.
- More tax savings plan for small and medium business in terms of tax incentives and better tax rates by the Malaysia government.
- Better monitoring and control for Sales and Services Tax (SST) under a company
- A variety of sources of financing fom banks loan, investor and even capital market with the vehicle
- An investment for holding company and joint venture project using the Special Purpose Vehicle (SPV)
- Starting and maintaning a company is affordable for all type of businesses when comparing the values.
Budget and plans needed before starting
- Search the availability of the name you have chosen: pick more than one just to be safe
- Have at least one director and shareholder, based on the new Company Act 2016
- Open a bank account and check with your banker to make sure that they accept your company.
- Have a budget estimate at an appropriate amount of rate for yearly professional charges for the company.
- Prepare a full set accounts for audit and tax purposes by hiring a full-time clerk or part time account person to help you.
- Open an income tax file number with LHDN once the company start to issue bill/invoice.
- To register with IRB (LHDN) as Employer (E number) when your company is starting to hire staff
- Contribute EPF, SOCSO and EIS for your staff is statutory requirements
- Deduct PCB from their pay and remit it to LHDN if you are paying your staff more than RM3,000 per month.
- If you are withdrawing director’s salary from the company, please contribute EPF, SOCSO and EIS for yourself
- If you are withdrawing director’s fee from the company, then you do not need to contribute EPF, SOCSO and EIS
- Apply for SST license if your company’s yearly sales for taxable goods and taxable services is expected to be more than RM500,000 and RM1,500,000 for a restaurant. Refer to Taxable Services threshold table.
- Get trading/signboard licenses from local authorities/governments (DBKL, MBPJ, MBSJ, MBAJ, etc…) before opening your shop/office
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