How Much
Taxes You Can Save
From Enterprise to Sdn Bhd?
Use our tax savings calculator to find out how much taxes we can help you save.
75% of our Sole Proprietor / Partnership clients have previously overpaid their taxes by 4 figures.
From RM 249/month, we can help you save up to 4-5 figures in taxes.
LHDN Registered Tax Agent
Certified members of MIA
Chartered Accountant Member of ICAEW
Chartered Accountant Member of ACCA
What if we tell you we can help you save up to 100% in taxes legally?
You can spend that extra cash on your family, investing in your business, or even on a new car or condo!
Our clients have saved up to RM 20,000 in taxes a year using our methodology and some of them have even used these savings for their second home downpayment and mortgage, or brought their whole family to Europe twice a year.
Another client even invested the 5-figures he saved into financial assets, and now, this amount has compounded to 6 figures.
Here's what we did for our client, Katrina Soh, an e-commerce seller.
Katrina* has been selling dry snacks by livestreaming on Facebook Live since 2019.
In the midst of the e-commerce surge, fueled by global shifts and her products going viral on TikTok in 2021, Katrina found her sole proprietorship generating a robust yearly profit of RM500k. However, this success brought with it a hefty tax liability of RM107k due to the high income tax rate bracket of 25%. She needed a strategic solution to reduce her tax burden without stifling her entrepreneurial spirit.
After working with her to transition her business structure from a sole proprietorship to a Sdn Bhd, she managed to significantly lowered her annual tax liability to RM81k, while drawing a salary of RM70k for personal use. The remaining RM430k (RM500k - RM70k) in the company was declared as dividend (which is not subject to tax).
She has since used these tax savings to build her second business venture in F&B.
*Name has been changed for confidentiality reasons.
Here's what we did for our client, Desmond Lee, founder of a software company.
Desmond* has been running a successful tech startup which build customised CRM and Analytics software since 2015.
As the founder of a thriving business, Desmond found himself at a crossroads when his company's yearly profit soared to RM800k. This financial success was shadowed by a looming tax liability of RM147k, a figure that weighed heavily on his company's fiscal efficiency. Desmond made a significant green investment by installing a RM300k solar PV system for his office, aiming not only to reduce operational costs but also to contribute to environmental sustainability. He sought our expertise to reduce his tax liability while maximising the financial benefits of his sustainable choice.
Our team dove into the details of the Green Investment Tax Allowance (GITA), identifying it as a perfect match for Desmond's situation. By meticulously preparing and submitting his application for the GITA incentive, we were able to decrease his company's tax liability from RM147k to RM82k.
With the additional funds, Desmond invested in blue-chip tech stocks in the US, particularly those poised to capitalise on AI innovation to diversify his investment portfolio and secure his financial future.
*Name has been changed for confidentiality reasons.
Here's what we did for our client, Mohd Hassan, director of a F&B company.
Hassan* was running a successful F&B business, however he encountered challenges in balancing his salary and EPF contributions to minimise tax liabilities.
The transition from being a sole proprietor to a company structure proved to be a pivotal move for Mohd in optimising his tax position. As a sole proprietor, the initial tax burden amounted to RM55k. Recognising the need for strategic adjustments, we recommended transitioning to a company structure and maximising the EPF employer contribution at the rate of 19%.
This strategic shift significantly impacted Hassan's tax liabilities, bringing down the total to RM37k (personal + company). The increased EPF employer contribution not only provided substantial tax deductions for the company but also aligned seamlessly with Mohd's objective of minimising overall tax obligations without compromising his salary or contributions.
Comparatively, this company structure demonstrated superior tax efficiency, achieving noteworthy savings when contrasted with the sole proprietor scenario. The resulting extra funds empowered Hassan to invest in a Semi-D near Kota Kemuning, marking a significant milestone in his personal and financial journey.
This transition exemplifies how a company structure, coupled with strategic adjustments, can optimise both personal and business tax positions.
*Name has been changed for confidentiality reasons.
Like what we did for our clients?
We can help you figure out the complex calculations,
and achieve the same level of tax savings.
Leave the tedious job to us, so you can focus on growing your business and enjoy your tax savings.
All these scenario are possible if you are:
👉 A Sole Proprietor earning more than RM 11,625 a month in profits (or RM 139,500 a year)
👉 Thinking about incorporating your company someday but just don't know when is the right time
Based on our Tax Savings Strategies generated by our Chartered Accountant and tax consultant, you can pay less taxes if you incorporate a Sdn Bhd instead of remaining as a Sole Proprietor, provided that your profits are more than RM 11,625* a month.
* Provided that you declare a certain amount of director's fee, compliance cost, etc, that we have calculated for you.
Frequently Asked Questions (FAQs)
💡Is it cheaper to manage a Sdn Bhd than a Sole Proprietor / Partnership?
Sdn Bhd is more expensive to manage — you will have to hire a corporate secretary and file annual returns to SSM. However, due to the lower flat company tax rate at 15% and 17% (for the first RM 600,000 of your chargeable income) and tax rebate, if you are earning more than RM139,500 a year in profit, based on our calculations and reasonable assumptions, and taking into consideration additional costs involved, converting will still save you more money overall. For example, if your profits are RM 250,000 a year, you will save around RM 10,000 in taxes.
💡Are there any hidden fees I should know?
👉 You need a minimum paid-up capital of RM 1.
👉 At least one director residing in Malaysia and is at least 18 years old. All directors should not be bankrupt nor have been convicted in Malaysia within the last 5 years.
💡What are the requirements to set up Sdn Bhd?
If you set up a Sdn Bhd with us, it's as easy as 3 simple and easy steps and we will manage the rest for you:
1. Choose a package or discuss with us if you want an ala carte service
2. Choose a name for your new company (We will need to get SSM Approval)
3. Sign the company incorporation documents (which we will send you)
Once the above is completed, we will incorporate your new Sdn Bhd with SSM immediately. After SSM approves the incorporation, within 3 months, the following will have to happen:
👉 We will be appointed as your company secretary within 30 days of successful incorporation.
👉 You will need to decide on your company's fiscal year-end, which can be any date within 18 months from the date of incorporation and we will advise you accordingly.
The entire Sdn Bhd set up process can be as fast as 2 days if all goes well. If you currently have an existing Enterprise, reach out to us and we will help you ensure smooth transition when setting up your Sdn Bhd.
💡What are the procedures like?
By setting up Sdn Bhd, you will need to pay compliance costs like audit fees, secretarial fees and tax agent fees. We have considered these in our calculations and we will advise you accordingly based on your situation. You will also need to do bookkeeping according to Malaysia's accounting standards – which we will be able to assist and provide bookkeeping services depending on the volume of business transactions you have.
💡Besides tax savings, what are the benefits of Sdn Bhd?
By incorporating Sdn Bhd, you enjoy the following benefits and advantages:
👉 Limited Liability: It protects you from risks and protects your personal wealth.
👉 Greater Access to Capital: It's easier to apply for bank loans through Sdn Bhd and you are often able to borrow money at lower rates than Sole Proprietorship and Partnership.
👉 Easier Access to Bigger Contracts: Depending on your paid-up capital, you are able to tender for bigger contracts.
👉 Better Branding: Sdn Bhd is often perceived to be more trustworthy by others than Sole Proprietorship or Partnership.
👉 Easy Transfer of Ownership: You can easily pass your business to your heirs, families, or friends through the transfer of your shares.
What Our Clients Say About Us?
Johari Low
Group Chairman of Rockwills Group
“Ang & Co. has been providing us with excellent financial service, ensuring that our compliance needs are well taken care of. Mei and the team have been very professional, responsive and efficient. I find them very supportive of our business needs.”
Warren Leow
Founder of Amazing Fables
“It’s a great pleasure working with Ang & Co.! Mei and her team have been very attentive to our business needs and have provided us with very comprehensive advice covering all angles which are sound and practical. I find that they’re also tech-savvy and up to date with the latest regulatory requirements. Very startup and founder friendly too! I can focus on growing my business knowing that our company is in good hands. Thank you and keep up the great work!”
Travis
Director of Jiannius Technologies Sdn Bhd
“Ang & Co’s commitment to professionalism and attention to detail has been instrumental in helping me manage my accounts. Their team’s expertise and personalised approach to our financial needs have created a sense of trust that’s hard to find elsewhere. I highly recommend this firm to anyone seeking not just an accountant but a trusted financial partner!”
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