If you are currently trading as a sole trader or thinking of setting up a business as one in Malaysia then you might want to think again. You are opening yourself up to all kinds of problems including liability if the business doesn’t work out as planned.
You always want to be protecting both yourself and your family from what lies ahead and so this is why it makes perfect sense that you would want to register your business as a private limited company. The clue is in the name so your liabilities are limited to just what the company owns and nothing more. This means that in the event that you have to shut down your business and you owe money then you can only be instructed to sell off company assets and not your personal assets.
If you don’t know where to start then you should contact Acclime Malaysia because they offer this service and many others so that your business can be a complete success. Setting up a private limited company can be sometimes complicated and time-intensive and so this is why it makes perfect sense that you want to contract it out to a third-party provider to do all of the hard work for you. This gives you time to concentrate on your business. If you are a little on the fence about whether or not you want to set up a private limited company then maybe the following benefits of doing so can convince you.
- Your liability is limited – This is one of the main selling points because if the company has to go into liquidation then the assets that belong to the shareholders are protected. If your business goes bankrupt owing wholesalers and supplier’s money then you as the owner of the business are only liable for the money that you have invested in this enterprise. You always want to be protecting your personal assets like your home and your car and so this helps you to do those very things.
- It’s a separate legal entity – This pretty much covers all of the above because if your competitors cannot get money from your failed business then there is no way that they are allowed to come looking or what are your personal assets. Nobody wants to have to put their home property on the line and jeopardise a roof over their family’s heads.
- Simple to raise capital – It is all about your business credibility and it can be very difficult raising essential capital for your business in order to expand if you are not a private limited company. It also makes it easier to set up business bank accounts for the payment of staff salaries for example.
You want to be able to project a professional image to customers and suppliers alike, so setting up a private limited company can help you to attract many new customers and hopefully some investors as well. Your business will be more credible and customers will be happy to do business with you.