Malaysia offers various benefits to entrepreneurs and investors looking to set up a company in the country, including an attractive tax system and business-friendly policy. Moreover, its talented and experienced pool of multinational workers makes Malaysia one of the best places for any industry base investment.
To legally run a business in Malaysia, business owners need to choose a business entity suitable for their business and register the company with the “Suruhanjaya Syarikat Malaysia” (SSM) or the Companies Commission of Malaysia. This article guides you through what you need to know about the requirements for company registration in the country of Malaysia.
Registration Requirements For Local Companies
Under the Companies Act of 2016, business owners can register two (2) types of local companies in Malaysia:
Here are the registration requirements for these companies.
A. Company Limited By Shares
Companies with share capital can be registered as private or public. A private company is recognised through the words “Sendirian Berhad” (Sdn. Bhd.), while a public company is identified through the term Berhad or Bhd.
Business owners intending to set up this type of company need to meet the following requirements:
The company’s director and corporate secretary must have a place of residence in the country.
The process of company incorporation includes the following:
- Conducting and applying a name search. There is a payment fee of RM 30 for every name applied.
- Lodging incorporation documents with the SSM within three months following the company name’s approval date. These documents include:
- The Constitution’s original copy (previously knowns as MOA)
- Form 48A, which include the statutory declaration by the promoter or director before appointment
- Form 6
- Additional documentation, including Form 13A’s original copy, one SSM letter’s copy approving the company name and one copy of every director’s and company secretary’s identity card
Under Section 14 of the Companies Act 2016, a flat business registration fee Malaysia of RM 1000 is payable to SSM for every incorporation application of the company limited by share. Upon submission of duly completed incorporation documentation and registration requirement’s compliance, the SSM shall issue a registration notice.
B. Unlimited Company
Registration processes and required documents for incorporating unlimited companies in Malaysia are similar to that of the company limited by shares. The only difference between the two is that unlimited companies must state their members’ liability as unlimited in the Constitution, unlike the companies limited by shares.
Registration Guidelines For Foreign Companies
The Companies Act defined a foreign company as follows:
The necessary documents for registering a foreign company in Malaysia include the following:
Getting Help From A Professional Company Registration Service Provider in Malaysia
The process to register a company in Malaysia can be daunting and complicated, especially for first-time entrepreneurs. A professional company incorporation agency can help to streamline the registration process and ensure the company complies with all statutory requirements.