Agreement Sdn Bhd: A Comprehensive Guide
Agreement Sdn Bhd is a private limited company incorporated in Malaysia. The term ‘Sdn Bhd’ is used to represent a private limited company in Malaysia. Agreement Sdn Bhd is one of the popular choices of business entity for entrepreneurs who are looking to start a business in Malaysia.
What is Agreement Sdn Bhd?
Agreement Sdn Bhd is a company that can be owned by one or more persons. The company is separate from its owners, which means that the company has its own assets and liabilities. This is known as a legal entity. In a private limited company, the owners or shareholders have limited liability. This means that the shareholders are only liable for the amount of capital they have invested in the company.
Advantages of Incorporating Agreement Sdn Bhd
Limited Liability: The owners or shareholders of a private limited company are only liable for the amount of capital they have invested in the business. They are not personally liable for the debts or obligations of the company.
Separate Legal Entity: A private limited company is a separate legal entity from its owners. It can own assets, enter into contracts, and sue or be sued in its own name. This provides a level of protection to the owners’ personal assets.
More Credibility: A private limited company has more credibility than a sole proprietorship or partnership. This can help in building trust with customers, suppliers, and investors.
Easier to Raise Capital: A private limited company can sell shares to raise capital. This makes it easier to raise funds than a sole proprietorship or partnership.
Tax Benefits: A private limited company is eligible for tax benefits, such as lower tax rates, tax deductions, and tax credits. This can help in reducing the overall tax liability of the company.
How to Incorporate Agreement Sdn Bhd
The process of incorporating a private limited company in Malaysia is quite simple. Here are the steps that need to be followed:
1. Company Name Reservation
The first step is to choose a name for the company and reserve it with the Companies Commission of Malaysia (SSM).
2. Submission of Documents
Once the name is approved, the necessary documents, such as the Memorandum and Articles of Association, Form 9 (Certificate of Incorporation), Form 49 (Particulars of Directors, Managers, and Secretaries), and Form 24 (Return of Allotment of Shares) need to be submitted to SSM.
3. Payment of Fees
The necessary fees need to be paid to SSM for the registration of the company.
4. Obtain Business License and Permits
Depending on the nature of the business, the company may need to obtain licenses and permits from the relevant authorities.
Conclusion
Agreement Sdn Bhd is a popular choice of business entity in Malaysia. It provides limited liability to the owners, separate legal entity from the owners, more credibility, easier to raise capital, and tax benefits. The process of incorporating a private limited company in Malaysia is quite simple. It is recommended to seek professional advice before incorporating a company to ensure compliance with the relevant laws and regulations.