Malaysia Hotline: +603- 2141 8908
Advantages
- The most obvious advantage is the liability "protection" to its shareholders, limited their exposures to the amount of share capital that they subscribed for. Any amount of debts beyond their shareholdings, they are not liable but provided there is no fraud or other malpractice.
- Another advantage is the simplicity to transfer existing shares or issue additional shares to new investors. Existing member can transfer his shareholding, wholly or partially, through selling of his shares (subject to directors’ approval, which is). Unlike sole proprietors or partnerships, there is no need to wind up the company in the event of death of its shareholders or directors.
Disadvantages
- The company's financial affairs will be accessible by the public.
- Compliance with the Companies Act, 1965. Although complying itself is not a disadvantage, the amount of effort required to comply with the Act is much more than a sole proprietor/partnership.
- The company had to perform annual audits on its financial statements.
- At least one company secretary is required to manage its statutory submissions and returns as well as attending and preparing minutes for board and shareholders' meetings.
- Incorporation cost is high, and there are yearly recurring fees to be paid such as audit, accounting, company secretarial and tax fees.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my