What am I missing out if I don’t register my business?

Introduction

Since the lockdown began, many people have turned to the internet for alternative sources of income. From selling on social media, livestream e-commerce to internet sales through third-party marketplace, agile opportunists are finding new ways to earn a living. 

While you could always complete transactions without formal registration with the authorities, it is a smart choice for new entrepreneurs to incorporate their businesses for a variety of reasons.

What Are The Benefits Of Registering My Business?

Expanding Business Horizon: You are richer than you think

We all know that our dream project will not just fall into our laps. But what if you could further expand your business horizon for the next 12 months?

Building brand trust could be your very first step towards a bigger job order. As a registered business is able to establish its own brand presence, it is often given the benefit of doubt compared to freelancers with regard to their competency and capability. In other words, many freelancers are missing out business opportunities due to this simple reason. Are you one of them?

Tax Savings Through Proper Compliance: Maximize your business income

The first impression of the general public over registering a business is having to pay tax and the complicated regulation and compliance.

This may be true, but tax is one of the inevitable parts of transacting. By exercising a proper taxation compliance for your business, you only pay the correct amount of tax, hence reducing the risk of overpaying tax. In fact, many business expenses are allowable deductions in deriving chargeable income for taxation. So why would you want to fork out money from your post-taxed personal income to cover your business expenses? 

Not to mention the risk of unlawful act of tax evasion that may be charged under Income Tax Act 1967 with RM20,000 or imprisonment, or 200% of tax undercharged or a combination of all.

Talk to our tax accountant now for further tax compliance and tax advice.

Get Rid of Unfair Treatment, Once and For All

Registering a business is one of the ways of protecting yourself using law as your shield. Imagine the situation where your business partners fall out of your unregistered business. What are the means you could use to safeguard your ownership and control over the business assets and liabilities? 

To illustrate the difficulties you may encounter, consider the case where all the assets are unregistered while all the bank loans are made under your personal name. You will be required to settle the bank loans as required by law, while there is no guarantee in receiving a fair split of the business asset. 

In the event if you are sued for claims by customer or member of the public who suffered a loss or injury as a result of your business activities, you may also be at risk of losing your business, and potentially your private assets including real estates and cars.

Referring to the cases illustrated above, how can a registered business protect you? 

1. With the support of proper documentation from your registered business, all assets and liabilities will be settled according to the provisions of law fairly.
2. By registering a limited liability company, the worst-case scenario is that you lose your business, but the liability claim will be limited to your business equity. Your personal assets will still be protected.

Honorary Mention: Increase the chances of getting a loan

Life is always about living it. While you are enjoying success and achieving milestones in your business and life, rewarding yourself for accomplishments can go a long way. Whether if you are ready to upgrade to a more luxurious home or owning a dream car, chances are you might need a good credit score for applying loans. 

A registered business means keeping a record with the government and a taxable income means a good proof of you doing well financially. These aspects will be taken into consideration when the banks review your loan application. So why make it harder to reward yourself?

Conclusion

Starting a business is indeed a big, beautiful step forward. Finding the right help in this stage is critical to the success of your investment. 

Here in Interesources Group, we have served over 1,000+ successful clients over 28 years. As such, our team has the right set of skills and experience to assist you in the following areas in registering your business:

• Professional consultation in choosing the right business entity that is best for you and your business
• Guidance and consultation throughout the process of setting up your business entity
• Compliance with Companies Commission of Malaysia (CCM/SSM), Inland Revenue Board (tax department), Royal Malaysian Customs (Sales and Services Tax), accounting services and payroll compliances, Employee Provident Fund and SOCSO etc.
• Tax compliance and tax advice to achieve tax savings through proper compliance
• Application for manufacturing license and tax incentives

Take control of your future. Get in touch with us today!