Four main reason to convert to Sdn Bhd
Tax optimization:
- When personal income tax is high, converting to an Sdn Bhd can effectively reduce the overall tax burden by leveraging the corporate tax structure.
Easier financing:
- Operating as an Sdn Bhd makes it easier to secure bank loans and attract external investment.
Business expansion & license applications:
- After converting to an Sdn Bhd, the business becomes eligible to apply for government licenses, undertake large-scale projects, and sign contracts with key clients.
Flexible equity financing:
- The company can raise growth capital flexibly by diluting shares to bring in investors.