hi,

I am planning to register a SDN BHD and let it hold my parents properties as it is troublesome to change the name of individuals as it will be inherited by 2 brothers and 2 sisters.

the reason for company is the properties just register under it and just pay the rental to the 2 brothers and 2 sisters.

any advice regarding this? any disadvantages?

Rental amount big only worth to do so.

But i guess the process is kinda troublesome and cost money right.

rental amount is significant as it is a few commercial properties. also easier to do the taxes.

the process and cost is the same if not more i guess if transfer to 4 individuals

Then yes, but details i not sure how the process, either by proxy or transfer owner and with shareholder, need some sifu

My case i do all individual, just personal income tax susah

Go ahead if those properties generate big rental lese just sell them

This post has been edited by kelvinfixx: Mar 30 2023, 10:13 PM

Good life

If it makes financial sense just set up shd bhd n get a company sec

can but what you want to achieve ?

disadvantage is the costs.. got audit fee, tax agent fee, company secretary fee, accountant fee.. so can your properties' income cover the cost?

on top of that, real property gains tax when u sell the property.

company never gets the >5yrs 0% rate. currently it's taxed at 5% of net profit.

make sure your parents got the will prepared

and also maybe invite your sibling as share holder or parter in the company? :X

RPGT for Company is 10% >5 yrs.

Yes if the rental is substantial then this is the fairest way to do, instead of son A get property A and son B get property B.

But better discuss among families, sometimes upon discussion, each children get their own properties and manage by themselves is most easiest way to settle things, instead of setup company (though is fairest).

parent property title name also need to transfer to xxx sdn bhd name ? also need to pay hefty MOT, right ?