One of Malaysia’s most common business structures is a limited liability company or company limited by shares. Malaysia’s limited liability company may take two primary forms: the public limited company or Berhad and the private limited company or Sendirian Berhad.
Generally, a public limited company is selected to incorporate larger business operations, whereas medium-sized companies typically choose to register a private limited company. This article guides you through what you need to know about incorporating a private limited company in Malaysia.
Legal Requirements for Setting Up a Company Limited by Shares in Malaysia
The process of private limited company registration in Malaysia is done following the Companies Act’s regulations. Below are the basic requirements for incorporating a private limited company in the country:
While Malaysia permits foreigners to become a shareholder, the director and corporate secretary must have a primary residence in the country, as per Section 196 of the Companies Act. The company’s director and shareholder can be the same individual, must be at least eighteen years old and not disqualified under the Companies Act 2016’s Section 298.
When incorporating a private limited company, the business owners should prepare details on the following:
Moreover, business owners need to prepare three kinds of payments for their company incorporation, including paid-up capital, registration fee and company secretarial fee. Fortunately, the minimum paid-up capital for incorporating a private limited company is only RM 1, and the SSM only charges RM 1010 for the registration fee. The corporate secretarial fee differs from one corporate secretarial agency to another.
Main Benefits of Setting Up a Private Company Limited by Shares
One key advantage of establishing a private limited company is the liability protection for the shareholders; shareholders will not be completely liable for the company’s debts. Moreover, this business structure employs an easy procedure for the transfer of shares.
The company’s statutory documents should stipulate that the maximum numbers of members are fifty. Also, the bylaws should comprise limitations about the public’s participation in the company’s share.
Post-Registration Requirements for a Company Limited by Shares
After completing the registration, business owners need to purchase their Certificate of Incorporation and appoint a corporate secretary within thirty days from the date of incorporation.
The company will also need to set up a corporate bank account for the Goods and Services Tax number registration. The following are other critical matters a private limited company needs to do after registration:
Getting Help from a Professional Company Registration Malaysia Services
The process of company formation in Malaysia can be complicated and daunting, particularly for start-ups. A professional company registration Malaysia services can help streamline the incorporation process and ensure the new company adheres to relevant regulatory requirement.