Paul Hype Page Sticky Logo

Guide to Company Registration Malaysia

Home>Guide/FAQ>Guide to Company Registration Malaysia

Guide to Company Registration Malaysia

2020-12-10T11:32:27+08:00December 9, 2020|0 Comments

Are you planning to register a company in Malaysia? This article provides detailed guidelines (requirements, procedures, and timeline) about company registration in Malaysia.

Whether you are a local or foreign entrepreneur, engaging a professional firm like Paul Hype Page to register a company is a good idea. Paul Hype Page is knowledgeable with the local law and regulations governing companies and is also skillful in handling ongoing Malaysia company incorporation’s regulatory and compliance requirements.

Types of Companies

There are 6 types of companies in Malaysia:

  • Sendirian Berhad (Sdn Bhd) / Private Limited Company
  • Company Limited by Guarantee
  • Sendirian (Sdn) / Unlimited Company
  • Berhad (Bhd) / Public Limited Company
  • Foreign Company
  • Perkongsian Liabiliti Terhad (PLT) / Limited Liability Partnership (LLP)

Every type of company has its own strengths and weakness. The differences among different types of companies are illustrated in the table below:

Types of Companies

Suitable for

Advantages

Disadvantages

Sendirian Berhad (Sdn Bhd) / Private Limited Company

 

Malaysian or foreigners who want to conduct SME businesses.

  • You can set up a company with 1 person
  • Does not require a constitution as the rights and obligations of directors and shareholders are stated in the Companies Act 2016.
  • The cost of setting up is relatively cheap

 

 

  • Cannot expand surpassing 50 shareholders.
  • Cannot make shares available to the public.
  • Cannot raise fund from the public
  • Transfer of share is restricted

 

Company Limited by Guarantee

 

Non-profit organizations/ NGOs

  • No upfront capital contribution is required from members.
  • The only type of company that can promote art, religion, science, charity, and pension schemes.
  • Can request to exclude the word ‘Berhad’ or ‘Bhd’ from the company name.

 

  • Very expensive and demanding to incorporate.
  • Requires a constitution that indicates the company’s objectives.
  • All profits are meant for the benefits of the organization only.
  • Cannot release or own any property rights.
  • Cannot convert to another type of company.
  • Members are still accountable for company debt if the company ceases business or operation within 12 months after they have stepped down from the company.

 

Sendirian (Sdn) / Unlimited Company

 

Mutual funds

  • The ownership of shares is flexible.

 

  • Very expensive and difficult to incorporate.
  • Requires a constitution that indicates the company’s objectives.
  • Shareholders have full responsibility for company debts if the company ceases business or operation within 12 months after they have stepped down from the company.

 

Berhad (Bhd) / Public Limited Company

 

Entrepreneurs with extensive business models.

  • Can easily raise funds as the company is listed.
  • Can issue shares to the public.
  • Has flexible ownership of shares.

 

  • Is expensive and difficult to incorporate.
  • Must comply with stringent rules and regulations.
  • Requires an Annual General Meeting (AGM) each year.

 

Foreign Company

 

Foreigners not residing in Malaysia who want to start a business.

  • Can run a business in Malaysia without a local director.

 

Perkongsian Liabiliti Terhad (PLT) / Limited Liability Partnership (LLP)

Entrepreneurs in a Partnership who carry out professional practices (accountancy, law, company secretary, etc.), in joint ventures, or venture capitals.

  • The number of partners is infinite.
  • Agreement among partners is flexible.
  • To cost of incorporatiaon is relatively cheap
  • At least 2 partners are required.
  • Cannot make shares available to the public.
  • Cannot raise fund from the public
  • The transfer of shares is restricted.
  • Is governed by a different law

Basic incorporation requirements to register a company in Malaysia (Sdn Bhd / PLT)

Once you have decided which type of company you want to incorporate, you need to check whether you are eligible to register a company in Malaysia. To register a company in Malaysia, you must fulfill the requirements listed below:

  • Minimum paid-up capital of RM1.
  • Minimum of one director who is at least 18 years old and has no prior criminal convictions and bankruptcy records. The director must also be residing in Malaysia.
  • Minimum of one shareholder.
  • Minimum of one company secretary who must be a member of any of the prescribed professional bodies or licensed by SSM. We at Paul Hype Page & Co can assist in the selection of a person for this position through our company secretarial services package.
  • Registered office address in Malaysia.
  • Proposed company name and its meaning.
  • Primary business activities of the company.
  • Copy of the NRIC or passport of all directors and shareholders.
  • Recent proof of residential address of all directors (utility bills, phone bills, and the like).
  • Contact details and occupation of all directors and shareholders.
  • Details of the beneficial owner (if not listed as the shareholder).
  • Information about paid-up capital.
  • Registered business address.
  • Source of funding.
  • Expected location of customers and suppliers.
  • Written confirmation from directors, shareholders, and beneficial owners that they are not politically exposed persons; email confirmation is also acceptable.

Visual Content

The solutions we offer for companies and their owners cover important areas such as incorporation, taxation, auditing, and work visas, among others.

Informative Content

We are always ready and willing to work with any genuine and legitimate company which requires our incorporation services or any other services we provide.

Packages

We offer company incorporation, consultancy services, auditing, taxation, immigration & compliance services.

Procedures to register a company in Malaysia

  1. Name your company

    Make sure your company trade name is unique, relevant to your business, and easy to remember. Try to avoid using your personal name to make your company look more professional. Please prepare at least three suggestions for your company’s trade names.

    Kindly noted that a business name and a trade name are different. A business name is the business’s legal name that you use on all government forms and applications. A trade name is normally used for advertising and sales purposes. Your business name and trade name should be identical to avoid confusion.

  2. Check availability of your proposed company name

    To avoid rejection and unnecessary charges from Suruhanjaya Syarikat Malaysia (SSM), it is recommended to check the availability of your proposed company name. You can do so through SSM online system or MYDATA.

  3. Fill in form “BORANG PNA 42” to register your desired Company Trade Name

     

  4. Fill in form “BORANG A” to register your company

     

  5. Submit both forms to SSM Head Office at Menara SSM

Timeline

Registering your company name with the SSM generally takes 24 hours. The preparation and registration of documents take 2-3 business days. The signing of the documents by all the directors and shareholders takes 1 business day. Submitting the documents to SSM and waiting for approval then takes 3-5 business days.

The timeline above is merely an estimate, assuming all your documents are in order and no technical issues are experienced. To ensure a smooth transaction, you should do your best to submit a complete set of documents as per SSM’s requirements. Leaving out pertinent information or certain documents could lead to unnecessary delays. There may be delays expected if more time is needed to verify your documents too.

If you want to make it easy, engaging a professional firm like Paul Hype Page to register a company is a good idea. Paul Hype Page is knowledgeable with the local law and regulations governing companies and is also skillful in handling ongoing Malaysia company incorporation’s regulatory and compliance requirements.

Post-incorporation procedures

Upon successful completion of business registration, you will need to open a corporate bank account and acquire the necessary business permits or licenses before the commencement of business operations. The compliance requirements for your business license vary depending on the nature of the business activities, industry, and location.

Other corporate compliance requirements include those related to income tax, EPF, and SOCSO. All Malaysian companies will be required to operate under the Companies Act 2016 framework.

Guide to Company Registration Malaysia FAQs

Do I need a company secretary if I want to register a Sdn Bhd?2020-12-09T10:23:43+08:00

Yes, you need to appoint a company secretary within a month (30 days) of the incorporation of your Sdn Bhd as per Section 236 of the Companies Act 2016. 

Why should I register a company in Malaysia instead of Singapore?2020-12-09T10:23:26+08:00

You should start a business in Malaysia because the start-up costs, employees’ minimum salary, and office rental rates are low as compared to Singapore. Besides, there is no restriction upon repatriation of capital, dividendsprofits, and royalties for all Malaysian corporations. You don’t have to worry about double taxation as well because Malaysia has signed 68 double taxation treaties with other countries. 

Can foreigners incorporate and fully own a company in Malaysia?2020-12-09T10:23:05+08:00

Yes, foreigners can incorporate and fully own a Malaysian Sdn Bhd. However, according to the Malaysian Companies Act of 2016, your company must have at least 1 director residing in Malaysia. 

What are the names that I should avoid for my trade name?2020-12-09T10:11:43+08:00

You should avoid any of these followings:

  • An undesirable name
  • Names in connection with members of the royal family. These include names that contain the word king, royal, prince, crown, queen, princess, imperial or regent.
  • Names that suggest a connection with the federal government or state departments, statutory body, government authority, government agency, or other local authorities.
  • Names that suggest a connection with Commonwealth, ASEAN, or any foreign government.
  • Names that suggest a connection with any political party.
  • Names that are misleading regarding the company’s identity and business nature
  • Blasphemous names that are likely to be offensive.
  • Names that can be mistaken for a similarly named company.

Leave A Comment

Go to Top