Deciding to take the leap and set up your own company is without a doubt a big decision. However, if you already have a working business model that you are running as a personal entity, you might want to consider quite a few things prior to making this particular decision. The truth is that the majority of considerations are going to be deriving from a marketing prospective while the others are straightforward legal and accounting matters that have to be thought of prior to make the step as things are surely going to change and you need to stand on top of them. Let’s take a quick look at what you need to be concerned about starting a limited liability company in Malaysia as this is without a doubt the most common type of business entities in the country.
Advantages of incorporating a Company
The most important thing that you are going to have to consider is the fact that your responsibility is going to be limited. Of course, this doesn’t mean that you can’t get yourself in debt through a personally signed settlement but apart from that you are not responsible for the debt of your company with your personal property. Your responsibility is going to be limited to your share in the capital which is overly beneficial and it provides a lot of protection and security. It means that if things go south the creditors won’t be able to go after your personal property of any kind.
Taxation and Accounting – The Pros and the Cons
You also want to consider that companies are taxed only on their profits and the rate would usually be around 20% and as such you won’t be subjected to higher taxes which are placed on the sole proprietorships. Without the help from an accounting firm in Johor Bahru, things are also going to be a bit harder to handle as there is going to be more bookkeeping than you might expected. You would have to be concerned with thorough Annual Financial Reports. The larger nature of the companies of this kind is also going to mean that the accounting is going to be more costly and time-consuming. You are going to be expected to produce annual accounts which are incorporating a particular double entry format as well as other notes and balance sheets. Of course, this isn’t necessarily true as your company might not be of large scale and those disadvantages won’t apply.
However, all this hassles will no longer be a problem for you if you outsource them to the professionals that are specialized in these fields. Contact us today to understand how we can remove these burden for you.