What’s in this article
- Private Limited Company (Sdn. Bhd.) in Malaysia
- Advantages of a Private Limited Company (Sdn. Bhd.) in Malaysia
- Disadvantages of incorporating a Private Limited Company (Sdn. Bhd.) in Malaysia
- Requirements to establish a Private Limited Company (Sdn. Bhd.)
- Procedure of incorporating a Private Limited Company (Sdn. Bhd.)
- Annual Compliance for Private Limited Company (Sdn. Bhd.)
- FAQs
In Malaysia, there are vast opportunities to establish a business due to its robust economy and government initiative to promote entrepreneurship, competition, and innovation in the workforce. Not only limited to locals, but foreigners are also allowed to set up a company here.
There is different type of business entities available in Malaysia. A business entity is an organisation formed voluntarily to carry out activities of trading goods or services to consumers for profitable gain or charitable purpose.
Most of the business entities are privately owned and administered by few individuals. One of the most preferred type of business entity is the private limited company. A private limited Company or otherwise known as “Sendirian Berhad” or “Sdn. Bhd.” is typically a small or medium sized enterprises with a straightforward registration process.
Private Limited Company (Sdn. Bhd.) in Malaysia
Malaysia has become one of the prime destinations in Asia for company registration amongst foreigners. It offers many advantages as an investment destination, favourable tax regime as well as strong government support.
With the revision of the Company Act 1965 to Company Act 2016, foreign investors are now allowed to solely own a Company (becoming a director and shareholder) without the need to appoint a local nominee director. This is allowed in the major vast of industries available in the country except for strategic sectors for national interest. The best structure to start a business is by incorporating a private limited Company (Sdn. Bhd.).
Advantages of a Private Limited Company (Sdn. Bhd.) in Malaysia
There are a lot of advantages incorporating a private limited Company (Sdn. Bhd.) in Malaysia can have and some of them:
Disadvantages of incorporating a Private Limited Company (Sdn. Bhd.) in Malaysia
Even though there is a list of advantages incorporating a private limited Company (Sdn. Bhd.) can bring, there are certain downsides that entrepreneurs need to consider before incorporation.
Requirements to establish a Private Limited Company (Sdn. Bhd.)
In order for an entrepreneur to incorporate a Sdn Bhd company in Malaysia, they are required to:
Some of the crucial items they are advised to also take note off are:
Procedure of incorporating a Private Limited Company (Sdn. Bhd.)
If you were to engage with Paul Hype Page & Co., all incorporation applications will be submitted electronically to Companies Commission of Malaysia – Suruhanjaya Syarikat Malaysia (SSM) by our certified Company Secretary.
The standard timeline needed are an estimation of:
Preliminary Works
Company Name reservation
Signing of Incorporation Documents
Risk assessments
Incorporating the Company
Once the Company is successfully incorporated, the Company Secretary should furnish you the documents below:
The documents above are crucial for the Company to initiate:
Annual Compliance for Private Limited Company (Sdn. Bhd.)
According to Company Act 2016, a private limited Company (Sdn. Bhd.) is still liable to complete its annual reporting lodgement which includes:
FAQs
In most cases, we recommend our clients to register a private limited company in Malaysia, also known as Sendirian Berhad (Sdn. Bhd.). The other types of entities that you can register include subsidiary company, public limited company (Bhd), foreign branch office, and foreign representative office.
Yes, we can support your Malaysia company registration remotely.
Definitely – in fact, the government are encouraging foreigners to invest and set up a company in Malaysia! However, foreigners must have an EP and local residential address.
Incorporating a company in Malaysia is not a difficult task. Fulfill all the requirements and you’re all set to have your new company up and running. Find out the detailed process in our article here!
For successful incorporation of your Malaysia private limited company (Sdn Bhd), you will need to submit the following:
– Company name registration (Form 13A CA)
– Form 48A – Statutory declaration by a director or promoter before the appointment
– Form 6 – Declaration of compliance
– Details of both shareholders & directors
– Details of appointed company secretary
– Identification documents of all stakeholders
– Registered address in Malaysia
– Company constitution
To check , if one of shareholder(director) want to take over share of another shareholder, under PLT company, may I know how the procedure.
Is it any form related need to fill up.
Please advise
Hi Khadijah,
For share transfer, you will need to obtain approval from the Board of Directors. If approved, you are required to complete the Share Transfer Form (Form 32A) – this will need be witnessed by a neutral party. After which, completion of the transfer will be stamped at any LHDN office.
You need to make sure the right paperwork is used. The best will be to get your company secretary to assist you with it.
Should you require a company secretary to assist, feel free to reach out to us on WhatsApp and we’ll can share more about our services.
https://wa.me/6584833084
Best Regards,
Paul
Hi, how much a limited company and private limited company need to prepare to apply for it? Is there any yearly payment required? We only want to apply for the licence.
Hi Tokhwa
The costs for incorporation vary based on your needs, for example if you are a local the price will be RM 2,048. If you are a foreigner, the price would cost between RM 8,648 to RM 11,848. In addition, the paid-up capital and any annual fees, depends on the nature of your business. To further answer your questions, please contact us at the link below, so we can better understand your needs and provide accurate advice to you.
Thank you for your question and hope to hear from you soon.
Warm regards
Paul
What are the usual issues happens in private company?
Hello Nur,
To incorporate a private limited company in Malaysia, you will require a company secretary, at least two shareholders and directors who are residents of Malaysia, a number of shareholders between two and 50, and a sufficient amount of paid-up capital which will depend on the business field you enter.
For further information on incorporation in Malaysia, please contact us.
Thank you.
Paul
If I register a pte Ltd company, is there a limit to the number of shareholders. If there is a limit what is the maximum number of shareholders before a pte. Ltd must be converted into a Ltd company.
Thanks
Hello Sin Seng,
In Malaysia, private limited companies and limited companies are known as Sdn Bhd and Bhd companies respectively. A Sdn Bhd company may have anywhere between two and 50 shareholders, but a Bhd company may have more than 50 shareholders.
Please contact us for any information regarding the incorporation of a Sdn Bhd company in Malaysia.
Thank you.
Paul