Why Register a Malaysia Company vs. Singapore Company
Steps Of Incorporation
- A name search must be done and approval obtained before using that name for a business entity like a company. The request is done to the Companies Corporation of Malaysia (SSM). The process can be done online on the SSM’s MyCOID portal. A nominal fee is paid per name searched. The approval or rejection notice is issued in 1 working day.
- The company secretary must submit incorporation documents to the SSM within 3 months of the approval of the company’s name. This can also be done online or in person. The SSM issues a Certificate of Incorporation in 1 day if the documents are filed properly.
- The company must register with the Royal Malaysian Customs to obtain a Goods and Services Tax number where applicable which is if the company has a turnover exceeding RM 500,000. The number is generated in 2 weeks.
- The company must also register with the Inland Revenue Board to obtain a tax number.
- If the company is hiring local employees it must register with the Social Security Fund and the Employee Provident Fund.
- A name search and approval must be obtained before registration. The application is done online on the Company Registrar’s website. The approval or rejection is done on the same day.
- The incorporation documents must be filed with the company registrar within 90 days of the name approval. This can be done online. The company registrar sends an official email showing the company’s registration number. The email serves as the Certificate of Incorporation.
- The company must apply for a Goods and Services Tax number issued by the Inland Revenue Authority of Singapore. This is applicable where the company is expecting to make an annual company turnover exceeding SGD 1 million.
Duration Of Incorporation
In Malaysia, a company can be incorporated in 2-3 days with the rest of the requirements like GST application coming after incorporation. In Singapore the incorporation is also possible in 2-3 days.
Costs Incurred In Incorporation
In Malaysia, the costs of registering a company depend on the authorized share capital of the company. The costs range from RM 1,000-70,000. In Singapore, the fees are SGD 315 for any amount of authorized share capital.
Tax Filing Requirements
Companies with more than 20 shareholders must submit audited annual tax returns to the Inland Revenue Board within 7 months of the end of the financial year. The returns must also be filed within 1 month after the Annual General Meeting. Companies with less than 20 shareholders must also file annual returns but are not required to have them audited.
- All companies must submit audited tax returns to the Company’s registrar by 31st October of each year. The returns must be filed within 1 month of the Annual General Meeting.
- Companies with an annual turnover of at least or less than SGD 5 million, and those with less than 20 shareholders are exempt from submitting audited returns but they must submit their returns.