Singapore Company Incorporation with Paul Hype Page
Company Registration at Paul Hype Page Singapore

SSM (Suruhanjaya Syarikat Malaysia) is responsible to monitor and enforce compliance in the business and company registration process. If you are interested to launch a business in Malaysia, you must register your business with SSM and incorporate your company.

There are two ways to register your company with SSM:

  • Physical counters at SSM’s office
  • Online on Ebiz website

If this is your first time to register a business with SSM, utilizing the physical counters at SSM’s office is highly recommended. All your login details on Ebiz website will be registered at the counter. You can proceed with the Ebiz website for subsequent registration and services.

It is advisable to register the business within 30 days of commencement. The registration is valid for a period of one to five years, depending on the business. Any company that operates without being registered is guilty of an offense and may be fined, imprisoned, or receive both punishments.

Types of Companies that can be registered in Malaysia:

There are six types of companies that one can register in Malaysia:

  1. Private Limited Company (Sdn. Bhd.)
    The Private Limited company is also known as Sendirian Berhad (Sdn. Bhd.) in Malaysia. This is the most common company type that is being registered in Malaysia. The company is limited by shares. The obligations and the rights of the shareholders and the directors are stipulated in the Company’s Act 2016. 

  2. A public company without share capital
    This type of company is widely known as a company limited by guarantee. This type of company is difficult to register. The members are part of the company as guarantors. However, these members are not the capital contributors to the company. The guarantors are responsible for clearing debt should the company cease operation as per the amount guaranteed. They have no rights to property and profit use, except as mentioned in the constitution’s objectives.
    Generally, the only company that promotes science, art, charity, religion, and pension schemes will incorporate this type of company in Malaysia.

  3. Unlimited Company
    This type of company is also referred to as Sendirian (Sdn.). This company is unlimited by shares. The shareholders are responsible for all company debt and even debts that come up one year after leaving the company. The shareholders can offer their claims to the company.
    Sendirian companies are normally formed for investment purposes like a mutual fund for holding assets.

  4. Public limited company
    This type of company is also called Berhad (Bhd.). It is very similar to Sdn. Bhd. except public limited company has no limit on its shareholders, and it is free to sell shares to the general public.
    Features of the company:

    • Listed publicly in the market
    • Flexibility in shares ownership
  5. A Foreign Company
    This type of company is formed and registered by foreign investors who are not residing in Malaysia but want to set up a branch of their parent company in Malaysia. The foreign stakeholders can conduct business in Malaysia without a local director.

  6. LLP (Limited Liability Partnership)
    LLP is also known as Perkongsian Liability Terhad (PLT). It is a combination of partnership and a Private Limited Company. This type of company is suitable for entrepreneurs forming venture capital and joint ventures in professional areas such as law and accountancy, among others. However, the difference is that it is registered on the MyLLP portal. 
    Features of Limited Liability Partnership:

    • Easy to set up
    • The flexibility of partners agreement
    • Cannot sell shares to the general public
    • Transfer of shares is limited
    • The number of partners is unlimited
    • Its governing law, the Limited Liability Partnership Act 2012, is different from that of other companies
Want to Start business in Singapore
Want to Start business in Singapore

The step to register a company in Malaysia

After deciding the type of company you want to incorporate, you can register your company with SSM by fulfilling the Malaysian government’s registration requirements. These are the procedures involved in registering your company:

  1. Put your directors and shareholders in place
    State the number of directors and shareholders
    For a private limited company, which is most friendly for foreign investors’ full ownership, you need one director and one shareholder for registration purposes of which one person can play both roles. However, you will need to add other shareholders in your company to a maximum number of 50 shareholders.

  2. Register your company’s business name
    Only a Malaysian citizen or a permanent resident in Malaysia who is 18 years old and above can register a company’s name. In order to register your company’s name, you need to submit three different names on the Borang PNA 42 form. Only one name will be adopted out of the three suggestions. However, the three options are necessary just in case the other two are already registered. You can search and verify your company name for availability for a fee or visit SSM’s website.
    The business name will be used on application forms and government-related forms. It is different from the trade name, which a company may choose to use for unofficial government purposes such as sales and advertisement.
    Features of a good company name:

    • Speaks about your company
    • Unique and catchy
    • Memorable
    • It should be ethical. The name should not contain abusive or censored words/phrases.

    It is optional to register the trade name, but you can do so by attaching BORANG A form to the first form BORANG PNA 42. BORANG A is for the company registering a different business and another trade name.
    The two forms are duly filled and submitted to the offline offices of the Commission for Company Registration at Kuala Lumpur Sentral by the company’s stakeholders. Upon submitting the form(s) and the registration fees, you are issued a registration number for registration purposes. When your turn arrives, your documents are processed in a period of around one to two hours. You are then given a business registration certificate.

  3. Prepare and submit your Articles of Association to the offices of the Malaysian government.
    The Articles of Association outlines your company details such as name, address, location, and business nature. The article indicates the directors, members, and shareholders’ position and responsibility, etc.
  4. Register for taxation related services
    Open a Tax File at the Income Tax Department, LHDN.

  5. Register for EPF (Employees Provident Fund)
    Attach your certificate for business registration and other relevant SSM documents within seven days of employing the workers.

  6. You may also be required to register for HRDF (Human Resource Development Fund), depending on your business sector.

  7. Health & Security’s insurances for your employees and for the company

  8. Open a corporate bank account.

    • A corporate bank account is opened after obtaining a Business Registration Certificate and clearing with the taxation offices.
Register a Company in MY

How to Register a Company in Malaysia? FAQs

What are the benefits of the Human Resource Development Fund (HRDF)?2020-10-19T17:01:30+08:00

This fund is beneficial to employees as it offers certification in skills training and enables them to apply for grants for training purposes. 

What are the benefits of choosing Malaysia as your investment destination?2020-10-19T17:01:06+08:00
  • Low rates for rents and wages   
  • Free from double taxation.  Malaysia is a member of 68 tax-related treaties. 
  • Your dividends will not attract Withholding Tax. 
  • The Malaysian government offers strong incentives that encourage investment of capital and registration of businesses. 
What type of company a foreigner can register in Malaysia?2020-10-19T17:00:48+08:00

A foreign investor can have full ownership by registering as a Private Limited Company (PLC) in Malaysia as long as it falls under the permitted industries such as agriculture, finance and banking, gas and petroleum-related products, tourism, as well as education. 

Must I register both company names and trade names?2020-10-19T17:00:17+08:00

You must register the company name, but not a trading nameHowever, SSM must approve your trading name. A trade name can be registered by filing it on the second form known as BORANG A and attaching it to the first form BORANG PNA 42.  

Is a trading name different from a business name?2020-10-19T16:59:58+08:00

Yes. The business name appears on government forms and company registration certificates, while the trade name is what the company chooses to go by in the public eye for sales and advertisement purposes like on billboards and online stores. It is not official, but it sells the company’s brand.  

What are the benefits of registering your company with SSM?2020-10-19T16:57:36+08:00
  • Users can verify your business information and the legality of your business dealings. 
  • It enables the company to apply for gateways of payment like iPay88 and eGHL. 
  • It provides details that enable the Malaysian government to carry out business community development and prospects. 
2021-01-22T15:48:19+08:00October 19, 2020|0 Comments