Malaysia’s KYC Requirements for Company Setup
As part of the Anti-Money Laundering and Anti-Terrorism Financing Act, the “Know Your Client” requirement mandates that all directors and shareholders must be present for the signing of the incorporation documents. If any director or shareholder is unable to be present, they must have another person acting as a witness. This witness must attest to the declaration form with the commissioner of oaths at their own state.
Once you have completed the registration process and opened a corporate bank account, there are a few more things left to be done. You need to get your business registered with SOCSO (Social Security Organisation). This is a legal requirement for all company types. SOCSO is a mandatory requirement to protect you and your employees from any work-related injuries which may occur.
Opening a Tax File with LHDN
It is also mandatory to open a tax file with the Income Tax Department. They are known locally as LHDN. Registering with the LHDN can either be done at the nearest office, or completed online.
If your business intends to hire employees, you will need to register with the Employees Provident Fund (EPF). This must be done within seven days of hiring the employee. You will need to submit a completed copy of KWSP Form 1. You will also need to submit your Business Registration Certificate. Other documents issued by the SSM must also be submitted at the nearest EPF office.
Depending on the industry you are in, certain industries require you to register with the Human Resource Development Fund (HRDF). This provides your employees with access to skills training and certification. These trainings are meant to help employees develop their work skills. Being registered with HRDF also gives you (the employer) access to apply for training grants. The grants can be used to subsidise the training cost for employees.