Incorporate Your Company
First door to world of opportunities
There are more than an option for the type of business entity, if you decided to embark on any particular business. In Malaysia, a business usually can be operated in either of three (3) forms:
A COMPANY LIMITED BY SHARES (PRIVATE LIMITED COMPANY - Sendirian Berhad)
This is one the most common limited companies. The liability of a member's contribution to the company's assets is limited to the amount specified (fully paid-up). In the event of company becomes insolvent, or falls into liquidation, the members are not required to make any further contribution to discharge its debts.
In other words, shareholder's personal assets would not be implicated to the company debts unless a personal guarantee had been given by the shareholder.
A Private Limited Company (Sendirian Berhad) will not allow the shares to be transferred to general public while a Public Limited Company (Berhad) whose shares are freely transferable, and may be offered to the public for subscription. The company may apply to the Stock Exchange for permission for its shares to be listed, thus providing an effective market for such shares.
Advantages of Limited Company
- Shareholders are not liable for the company debts beyond the amount of share capital that they had subscribed, on conditions there has been no deceit, fault or other malpractice
- Company ownership transfer is easy, either wholly or partially. No restriction on the Increase of share capital through the issue of new shares to new investors
- No need to dissolve the company in the event of deaths or any changes of the shareholders or directors
Disadvantages of Limited Company
- Public have rights to access to the financial affairs of the company
- Company has to comply with the requirements of the Company Acts, 1965
- Company has to appoint Auditor to verify and report its financial statements every year
- Company must have at least one Company Secretary to take charge of its statutory returns as well as board and shareholder's meeting
- Cost of forming Limited Company is higher. This includes the cost of stamp duty and registration fee of authorised share capital, the cost of formation expenses such as professional fees, filing fees, printing of memorandum and articles of association, share certificates, common seal, etc
- Annual costs for professional fees to Auditor, tax Agent and Company Secretary
Other types of limited company :
A COMPANY LIMITED BY GUARANTEE
Such companies are invariably non profit-making concerns. They include professional bodies, trade societies, clubs, etc. The member's' liabilities will be restricted to the amount each agrees to contribute to the assets of the company on winding-up. This amount is usually specified in its memorandum of association, which forms part of a company's constitution. In the event of company wound up, each member of that time may be required to contribute up to the amount of the guarantee towards payment of the debts incurred while he was a member. Past members are liable only if the present member default.
The member's liabilities are no limit. Such undertakings do not materially differ from partnerships or individual traders. A past member is liable only if he ceases to be a member within one year of the winding-up. Unlimited companies must have specail articles of association and are free to return captial to their members.
We welcome you becoming our client in Corporate Secretarial Division for a huge success.
NOTSURE click for an answer
What kind of business suits me?
How fast I can get the company incorporated?
Click here for a List of Ready-Made Company