To legally operate a business in Malaysia and obtain the protection and privilege of a registered company, business owners need to incorporate their company with the SSM or Companies Commission of Malaysia. This article lays down the general timeline and fees for company incorporation in Malaysia.
Steps to Incorporate a Company in Malaysia, and How Long Does it Take?
The following are the necessary steps in incorporating a company in Malaysia and its corresponding timeline.
Name Search and Application
During this step, business owners need to brainstorm three potential names for their company and submit them to the SSM. If the proposed name is available, they need to complete Form PNA.42 to reserve the name. Approval for name reservation from SSM typically takes about one to three working days. Business owners can also apply for the business name online.
Preparation of Incorporations Documents
This process usually takes about one hour or less once the business owners have the complete papers they need for company incorporation. It would be best for business owners to secure the necessary documentation before beginning the initial step of name search an application.
The required incorporation documents include:
Filing and Lodging of Documentation
This process generally takes about three to five working days. After successfully registering the company name, business owners must submit all necessary incorporation documents within three months. Failing to do so may cause them to repeat the process of registering a new company name.
Certificate of Incorporation’s Issuance by SSM
This step typically takes about five to ten working days. Once business owners submit their documents to SSM, it will issue a Certificate of Issuance. The company has to create its First Board of Directors. These directors’ roles are vital since they will become the statutory forms’ signatories that will be submitted to the SSM. The statutory forms can be produced within one to two working days after the Board of Directors’ first convention.
Business and Company Name Registration Fees
The following are the registration fees for a new business name, business updates and information:
Under the Act’s section 27, the fees for application for company name reservations is RM 50. The name reservation period could be extended with a RM 50 fee for every thirty days or part thereof with a maximum of one-hundred and eighty days.
Under the Act’s section 28, the application fee for the change of company name is RM 100. On the other hand, the application fee for the change of foreign company name is RM 250, according to section 567 of the Act.
Company Registration Fees
The new Companies Act 2016 requires business owners to pay a flat registration fee of RM 1,000 to SSM for every application for company incorporation.
Foreign Company’s Registration Fees
The fees for a foreign company’s registration depend on its share capital. The company should convert the share capital to Malaysian currency or RM at the current exchange rate first before determining the registration fees.
Below are the foreign company’s share capital and its corresponding registration fee:
If the foreign companies do not prescribe any share capital, they need to pay a flat rate of RM 70,000 to the SSM.
Getting Help from a Professional Company Incorporation Services provider in Malaysia
The incorporation of companies in Malaysia can be time-consuming and daunting, especially for first-time entrepreneurs. Professional company incorporation services help business owners and investors incorporate the company smoothly while compliant with government regulations.