One of primary advantage of Sdn Bhd is personal wealth protection. Sdn Bhd is limited liabilities entity, so personal liabilities does not extend to other shareholders.
Tax rate
Personal tax rate is higher than corporate tax rate. The highest personal tax rate will be 30%,. However, company tax rate is 24%. You can save more money, if you are paying company tax rate.
Tax rebate
Government has tax rebate for new Sdn Bhd who is register within 1 July 2020 to 31 December 2021. Each company entitle to enjoy RM20k tax rebate for first three years.
Easy to get bank loan and investor
Compared with Enterprise, Sdn Bhd enjoys a high reputation. Therefore, Sdn Bhd can easily obtain loan approval from the bank.