4 Key Advantages of Setting up an LLC in Malaysia
In Malaysia, entrepreneurs can set up their companies under different categories. Among them, the most popular business type for foreign investors is Private Limited Company (PLC), also known as Limited Liability Company (LLC). This particular business structure entails that the owners and investors have more concessions over liabilities and taxation. Their liabilities are limited only to the amount they invest and the activities they do within a company. Moreover, there are key advantages that businesses can benefit from when they are registered under LLC.
First of all, setting up an LLC company offers complete independence. "As a separate entity, the business liabilities do not affect the owners' or the investors' personal assets. Running an LLC company gives its members a level of financial stability while adhering to state laws and paying taxes. Although it is governed by the state, it works independently as a privately owned company. This means that the owners are given more flexibility to navigate their business," stated Mr. Jason Wong, Accounts Manager of Bestar Consulting.
Additionally, with this flexibility, the owners can infuse more capital funds to run their business.
"In order to seize opportunities, businesses need to infuse more funds so that they may expand their companies and operate on a much bigger scale. Fortunately, there are several ways to go about it. LLC business owners can offer share certificates to foreign investors or issue bonds in order to increase their total capital. In some instances, they can also acquire funds from the banks through loans with a relatively low interest rate compared to other company types," explained Mr. Wong.
In expanding operations and setting up a branch company in Malaysia, one of the key advantages of setting up an LLC is decreased rental cost.
Mr. Wong continued, saying, "It is well-known that the premises expense in Malaysia is high. However, with the flexibility given to LLC businesses, they can rent properties that are economically beneficial, yet affordable as well."
Having the freedom to choose a convenient location is an opportunity every LLC business owner needs to take advantage of. To maximize profits, businesses need to study the geographical position, understand potential consumers and analyse their market behaviour. In doing so, their businesses are guaranteed to get the right amount of exposure and engagement they need to thrive.
Bestar Consulting handles company registration in Malaysia. They are a pioneer firm that provides comprehensive business solutions for local entrepreneurs and foreign investors to seize opportunities and maximise profits.
For more information, you may visit https://bestar.com.my/