We take steps to protect ourselves in our everyday lives by taking out the various insurance policies that will pay out in the event that something untoward happens. It is something that we have been brought up to believe that it is always best to prepare for something that may never happen.
This is sound advice and it is particularly important when it comes to operating your own business. If you are currently operating as a sole trader or as part of partnership with a friend then you are leaving yourself and your family open to major difficulties if your business runs into problems financially.
You need to remember that if there is a court order awarded against your business then the courts can force through the sale of your home and other personal property to make sure that the people that you owe money to are paid in full.
It just doesn’t make sense to put you and your family in such a difficult situation when it can be easily avoided by setting up a company formation in Malaysia. By registering your business you are limiting your liability to the business only and this will provide you with the essential peace of mind that every new business owner should have. If you still have to be sold on the benefits of registering your business then here are some of the benefits of doing so.
It protects your interests –
As was mentioned briefly before, you are jeopardising your business and your future by trading as a sole trader or as part of a partnership. By registering your company you’re taking the necessary steps to make sure that what you have worked hard for up until this point in your life remains with you even if your business is not a complete success.
This is you spending your money wisely because your parents and grandparents have always told you to cover your back and life and so the same rules apply here. Obviously you want your business to be a real success and you’re going to work hard at it might in the unlikely event that everything goes patiently then at least your personal assets are covered.
You pay less tax
Many people wrongfully believe that if you register your business then you will be liable for higher tax. The opposite is in fact through and many businesses pay less tax than an individual would.
The Malaysia government for example gives tax breaks to new businesses just starting off in the country and so your business will end up paying less tax its first year of trading. You can always make tax deductions for essential business expenses like staff training, company vehicles and any other costs associated with a successful business.
These are just two of the reasons why registering your business makes so much sense and there are many more. To get your business off and running to a strong start, get it registered and then start working on improving upon your customer base so that you can realise those profits that are coming your way.