Pros of Company Limited by Shares (Sdn Bhd)

The company is alive: One of the advantages of Sdn Bhd operations is that the company is a separate legal entity. This means that society is considered to be a "person" apart from the law. The Company has virtually all of the power to purchase, purchase, and sell assets (physical persons or so-called "real persons", "the law"); Authorization to conclude contracts; Authority to open bank accounts and receive money; to file a suit (and even claim a risk!) and so on.

Shareholders, managers, and employees may enter and exit but remain in effect until the company is dissolved (for example, terminated or deleted from the company registry). This makes Sdn Bhd good for future plans.

Limited liability for owners: Perhaps one of the most important advantages of using Sdn Bhd is that the company's shareholders are limited to the amount they are willing to pay or participate in. For example, if you invest about 200,000 RM within 20,000 shares in the company and the company becomes insolvent, your worst case can not be restored. As a shareholder or director, you are not liable for any liabilities of the company.

You can run a 1-man company: You can manage a company with 1 person: Under the new 2016 law, the company may have one manager and one shareholder (the same person). At least two separate directors and shareholders are required under the 1965 former Companies Act. Therefore, exclusive operators can review their business in the same company because it does not involve their colleague / director.
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