1. You're taxed as an individual when you do your business as a Sole Proprietor. Sdn Bhd's tax highest tax bracket is 1% less than an individual. I can't recall the figures, pls do a search on google.

2. You get more deductions in the form of travel expenses, director fees etc from a Sdn Bhd.

That's the gist of it. There are tons more other tax advantages but these are the main ones I can think of.

Only profits are taxable. But regardless of whether you take out the profits of leave it in the company, this has no effect on the amount of company tax. Once profit is generated, it is taxable. Not when you're taking it out. Even if you leave the money in the company, tax is still payable. The only way to reduce the tax is to reduce the profits.

There are only two ways to take money out, reduce the share capital, or pay dividend (reduce accumulated profits).

Whichever way you choose to take out your money (or even if you leave it in), it has no effect on the amount of tax you or your company have to pay.

It is inadvisable to reduce the company's paid up share capital from RM10k to RM2. There is no benefit in doing so. It looks much worse than reducing the company's accumulated profits from RM20k to RM15k. But if you are dead set on doing that (for whatever reason I cannot understand), you can just contact your company secretary. You have to leave RM2. The only way to take the last RM2 would be to wind up the company, and you said it is profitable.