Step by Step Guide for Foreigners to register a company in Malaysia

As a foreigner looking to register a Malaysian company, you’re probably wondering who is SSM? The Suruhanjaya Syarikat Malaysia (SSM), also known as the Companies Commission of Malaysia, plays a pivotal role in the incorporation and regulation of businesses in Malaysia. Whether you’re a local entrepreneur or an expatriate looking to register a new business in Malaysia, adherence to SSM’s registration process is imperative.

This guide provides a straightforward and formal overview of the key steps involved in successfully registering a company with SSM to run your business. The governmental body for Malaysian company registry is the Suruhanjaya Syarikat Malaysia (SSM). All entrepreneurs and business owners need to register business entities with SSM.

There are 3 parts to your company registration process:

• Pre-registration
• Registration with SSM
• Post-registration

What are the Requirements for Malaysia Company Registration?

The requirements for business registration are:

• Minimum 1 director, aged 18 years old and above
• Minimum 1 shareholder, aged 18 years old and above
• Minimum RM1 paid-up capital
• Appointment of a local company secretary who is licensed by SSM or a member of any professional body
• A local registered address.

Once you have fulfilled these requirements, you can proceed to register your company with SSM directly online if you are a local resident or engage a registered filing agent to assist with your company registration.

Timeline for Malaysia Company Registration

The company incorporation process for a Malaysian company typically spans 5 to 10 business days. However, it’s important to note that the registration timeline may vary based on several factors, including the accuracy and relevance of the information provided during the application process.

Step-by-Step Guide to Register a Company in Malaysia

The process of registering your business in Malaysia is straightforward once you have all the information ready. Here are the the steps to starting a business.

Step 1: Identify your ideal business structure

Before you can open a company, you should have an overview of the types of companies that you can set up in Malaysia.

Choose from the following business structures:

1. Sole Proprietorship
2. Partnership
3. Limited Liability Partnership (LLP)
4. Private Limited Company (Sdn. Bhd.)
5. Public Limited Company (Berhad)

Each business structure, whether sole proprietorship or private limited company, has advantages and disadvantages.

Step 2: Choosing a company name

There are specific guidelines and requirements when you propose the company’s name. We have outlined the full list in our article on selecting a company name here.

Once you have identified your business name, you must do a name search by checking its availability with SSM. Alternatively, you can use our free company name checker tool as well.

Step 3: Register with SSM

Your approved company name will be reserved for 30 days from the date of confirmation by SSM. Upon confirmation, you may register a company online via the SSM website.

The documents needed for company registration with SSM include:

• Copy of the identification card for every director
• Declaration of compliance
• Declaration by a director or a promoter before the appointment

What to Do After Company Registration in Malaysia?

After registering and getting your incorporation certificate, your business is now a legal entity, and you can start your business if no additional licenses are required.

Here is a complete guide that needs to be followed after your company has been successfully registered:

Opening a business bank account

It is important to open a business bank account to settle your business affairs in Malaysia.  If you are a foreigner, the process of opening bank account in Malaysia may be more difficult as compared to a local.

We have provided our insights on the challenges that you may face and the process of getting a bank account here.

Some of the banks available in Malaysia that you can consider include:

• Maybank
• CIMB Bank
• RHB Bank
• UOB Bank
• Hong Leong Bank Berhad

The documents required to open a corporate bank account are:

• Section 14 – Superform (Application for registration of a company)
• Section 15 – Notice of Registration (Certificate issued by SSM)
• Section 17 – Certificate of Incorporation
• Section 46 – Particular of registered address
• Section 58 – Particulars of directors
• Section 58 & 236 (2) – Appointment of first company secretary
• Section 78 – Particulars of shareholders and shares
• NRIC/ Passport
• Business Plan
• Proof of residential address
• Tenancy agreement of business address (if any)

Applying for business licenses (if needed)

There are 3 categories of business licenses in Malaysia:

• General licenses from local town councils
• Industry or sector-specific licenses from government ministries
• Activity-specific licenses

See our guide on the types of business licenses required for various industries. Typically, the duration for business license approvals takes between 1-6 months.

Fulfilling your tax obligations & annual business reporting compliance

Every company operating in Malaysia is required to fulfil its tax obligations and comply with the regulations stipulated in the Companies Act 2016.

The corporate tax rate in Malaysia stands at 24%. Companies must file their taxes annually unless specifically exempted.

To determine if your company qualifies for tax exemptions or incentives, you can read more about it here.

Hiring local or foreign employees

The last but most important thing is hiring employees for your company. In Malaysia, all employers are required to register with the Employee Provident Fund (EPF) within 7 days before your employee’s start date.

Here are the documents required for EPF registration for private-sector employers:

• Form KWSP 1
• Form 49
• SSM Company Incorporation Certificate
• Director’s identification card

If you are unsure of your employer’s obligations to your employees, you can read our comprehensive guide to EPF, SOCSO, EIS and MTD in Malaysia.

For foreign employees, you will need to apply on their behalf for a work visa. Foreign business owners are also required to apply for an employment pass under the company.

Paul Hype Page Malaysia Company Registration Process

At Paul Hype Page, we have our own proprietary software for company registration and corporate secretarial activities. All company secretarial and incorporation processes are done online, without a need to be present physically in Malaysia.

If you were to appoint us as your trusted incorporation provider, here are the steps that businesses need to follow to set up a company.

The process is simple – provide and sign all the documents digitally and our team will handle the rest.