Top Reasons For Entrepreneurs to incorporate a Sdn Bhd Company in 2021
1. The economy is rebounding in 2021
As the vaccination programme has started to roll out in Malaysia since late February 2021, signs of improved economic activities are seen where eateries are full, shopping malls are crowded, and the roads are full with traffic again. The Central Bank of Malaysia (Bank Negara) have recently projected a GDP growth between 6% and 7.5% in 2021, having one of the strongest growth potential in South East Asia.
In a nutshell, Malaysians can no longer wait to get out and re-start the pre-MCO lifestyle and these are the signs that the economy is recovering and what better time it is to set up your company to leverage on the recovery.
2. RM20,000 tax rebate for newly incorporated Sdn Bhd
As part of the economic recovery plan, the Government has announced additional RM20,000 tax rebate for company incorporated between 1 July 2020 to 31 December 2021. In essence, based on general tax rate, approx. the first RM117,000 profit that the company makes is tax free! (note that this figure is for illustration purposes only as actual tax deduction may vary on case-by-case basis).
3. RM300,000 tax deduction on renovation and refurbishment
In addition to the RM20,000 tax rebate, the Malaysian Government have also announced that renovation and refurbishment expenses totalling up to RM300,000 that are spent in 2021 can enjoy special tax deduction, which translates to approx. RM50,000 to RM70,000 in tax savings (depending on tax bracket of company corporate taxes). In the past, LHDN generally allows these expenses to be claimed only via capital allowance if these expenses meet the conditions.
4. Availability of various grants and loans
Many grants and loans are also given out for Small-Medium Enterprises (SMEs) to as part of the efforts to rejuvenate the economic and many of the grant or loan qualifying terms would require the entity to be a Sdn Bhd in order to be eligible to apply for these grants and loans.
If you are interested to set-up a Sdn Bhd company in Malaysia, fill out our contact form here or email enquiry@wecorporate.com.my
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