No business wants to find itself caught up in red tape and regulations because they want business processes to be easy and I suppose that’s the way that they should be. This is why many new start-ups want to trade as a sole business or as part of a partnership because they feel that this gives them the protection that they need. The opposite is actually true and they are putting their business and their efforts in jeopardy because they are not putting the right things in place to protect everything that they have worked so hard for. Many people wrongfully assume that company registration is just a way for a government to generate money and is nothing more than that. This is so untrue and the reason governments and local regulators encourage new businesses to register themselves is because of the many benefits that it provides.
Company registration in Malaysia is designed to protect your business and to take care of your interests. Its purpose is to separate you from any personal liabilities on the outside chance that your business endeavour may not be successful. You do not want the courts making an order to confiscate your personal items like your home and your car because you were too stubborn to have your company registered in the first place. If you’re still not sold on the idea of company registration and how it can totally benefit you, then maybe the following benefits of doing so can help you to make a wise business decision.
– You pay less tax – This always comes as a surprise to new business owners because they wrongfully assume that they can actually pay less money as a sole trader or as part of a partnership. The opposite is actually true and most registered companies pay a lot less tax than you may think. There are many tax breaks offered to businesses that set up in a new country because the government there wants them to stay and they want them to provide new jobs. It makes sense to reward these businesses for setting up there and so your business will get to enjoy certain tax benefits as well. You can make many tax deductions for money that you spend in the course of your business like training, digital marketing and others. If you are planning for your retirement, then this will be money saved for that.
– You limit your liability – This is probably one of the most important reasons why you need to register your company because it limits your financial losses and it treats your business as a totally separate entity from yourself. In the unlikely event that your business enterprise doesn’t work out as you thought it would, you may lose all suppliers and wholesalers money and if you don’t have it to pay back then the courts may award then your costs and so force the business to sell its assets. The great thing is that your personal assets are excluded from this and so this will allow you to walk away with everything that you own personally intact. There is lots of government help to assist you in your new venture.
The second reason alone should be enough incentive to get you to register your company, but there are many other positive benefits to be had as well. Hopefully now you understand the benefits of company registration and so the next thing that you have to do is to find yourself a competent provider who knows the whole procedure from back to front. This is a very wise business decision to make and it is one that will stand by you as you move into the future.
