Many people assume that maintaining a limited company (Sdn. Bhd.) in Malaysia is expensive. The costs associated with maintaining a Sdn. Bhd. are as follows:
- Annual Secretary fee
- Annual Tax Submission
- Accounting and bookkeeping fee
- Statutory Audit Services
The costs outlined above can pose a significant financial burden for newly established businesses, particularly small and medium-sized enterprises (SMEs). These companies often require a period of time to establish their operations and generate sufficient sales, making it challenging for them to bear such expenses in the early stages of their growth.
Good News!!!
To alleviate the financial burden of conducting audits for SME private companies while ensuring financial accountability, there will be audit exemption for the companies generating 1-3m sales and total assets over the next three years.
Cost Comparison
Sdn. Bhd. | Enterprise | |
Secretarial fees | √ | X |
Tax Submission | Form C | Form B |
Accounting fee | √ | √ |
Tax rate | 15%-17% | 24% |
From the cost comparison paragraph mentioned above, for the SME having sales and total assets less than 1-3m starting from Year 2025, Sdn Bhd only pay extra expenses which is the secretarial expenses as compared to register the enterprise, and such cost is minimal to a business.
All benefits to Register Sdn. Bhd. in 2025
- Single director and shareholder can register new Sdn. Bhd.
- Better control due to voting power
- Lower tax rate as compared to sole proprietorship
- Separate legal entity
- Build better portfolio for credibility bank borrowings in future
- Audit exemption