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Should you incorporate your Sdn Bhd by yourself?

The Pros and Cons of Incorporating an SDN BHD Business in Malaysia without Engaging a Company Secretary


Starting a business in Malaysia can be an exciting venture, and one of the most common business structures chosen by entrepreneurs is the Sendirian Berhad (SDN BHD), a private limited liability company. When setting up an SDN BHD business, it is typical to appoint a Company Secretary to handle various administrative and legal responsibilities. However, some entrepreneurs may consider handling these tasks on their own. In this blog post, we will explore the benefits and disadvantages of incorporating an SDN BHD business in Malaysia without appointing a Company Secretary.


Benefits of Self-Handling:

1. Cost Savings: One of the primary advantages of not appointing a Company Secretary is the potential cost savings. Hiring a professional Company Secretary can add to the initial expenses of setting up a business. By taking on the responsibilities yourself, you can save on some fees, particularly in the early stages when financial resources might be limited.


2. Direct Control and Flexibility: Managing the administrative tasks of an SDN BHD business allows you to have direct control and flexibility over the timeline. By staying actively involved, you can ensure that all the necessary paperwork, compliance, and reporting obligations are met according to your specific timeline and preferences.


Benefits of Engaging a Company Secretary to Incorporate the company for you:


1. Complex Legal and Regulatory Requirements: Incorporating an SDN BHD business

involves complying with various legal and regulatory requirements in Malaysia. Without professional expertise, there is a higher risk of making errors or overlooking important obligations, potentially leading to penalties or legal issues.


2. Time-Consuming Tasks: Managing all administrative tasks on your own can be time-consuming, especially if you are not familiar with the necessary procedures and documentation. As a business owner, your time is valuable, and diverting significant hours to handle administrative matters may take away from other crucial aspects, such as business development and strategy.


3. Expertise: Company Secretaries possess specialized knowledge and experience in dealing with the legal and regulatory aspects of running a business. Their expertise ensures that the company remains compliant with all legal obligations. By not appointing a Company Secretary, you may miss out on their professional insights, potentially leading to oversights or inefficient practices.


4. Experience in Incorporation Process: Company Secretaries have extensive experience in the incorporation process of SDN BHD businesses. They are familiar with the necessary documentation, procedures, and timelines required by the Companies Commission of Malaysia (SSM). Their expertise ensures a smoother and more efficient incorporation process, reducing the risk of errors or delays.


5. Direct Contact with SSM: Company Secretaries maintain regular communication and have established relationships with the personnel at the SSM. In the event of any incorporation issues or queries, they know who to contact and can navigate the SSM system more effectively. This direct line of communication can save valuable time and prevent potential roadblocks or misunderstandings during the incorporation process.


Deciding whether to handle the incorporation of an SDN BHD business in Malaysia without a Company Secretary is a critical decision that should be made based on your resources, expertise, and long-term goals. While self-handling can provide cost savings, control, and a deeper understanding of business operations, it also carries the risk of legal and regulatory compliance issues, time-consuming tasks, and limited expertise. It is essential to carefully weigh these benefits and disadvantages to determine the best approach for your specific circumstances. If you choose to self-handle, it is recommended to seek guidance from professionals or legal experts to ensure compliance with all applicable laws and regulations.


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