Process of Company Registration
To obtain this business registration number, the first step is to register your company. There are few steps involved in this and after completing all steps, only then you will acquire the business registration number and you may kick start your business thereafter.
Before going ahead with the registration process, you will need to determine the exact scope of your company’s business and identify if you are legally permitted to explore the fields of your chosen business. This is because there are industries which are restricted if you have any foreign involvement in your company.
Before you start with the registration, there are several important documents and details you should gather which will be required in the due process. This include the residential addresses of shareholders and directors, relevant documents which confirm the identity as well as the structure of share capital.
Next, you will need to come up with a name for the company. Once the name gets approved, you can then proceed to submit the prepared documentation. Failure to submit all the relevant documents correctly may result you in delays. The reviewing is done by the SSM authorities and if your documentation and information are complete and approved, you will then be given the company registration certificate, which allows you to start operating your company with a legal entity status in Malaysia.
In order to register the company, you will need to appoint a company secretary to do it for you. The steps involved in the registration procedure is outlined in detail as below.
- Name search and reservation
A company’s name is the most unique way to associate your business image with your customers emotionally and is the entry point to your business. A good business name will differentiate your business and your competitors instantly. Hence, it is important that you strike a right tone with your business’ name as every business has a brand image, and brands are literally built on names.
A name search must be carried out to determine whether the proposed name for your company is available for registration. To apply for the name search, you will need to submit a completed Form 13A of the Companies Act (Request for Availability of Name) to Suruhanjaya Syarikat Malaysia (Companies Commission of Malaysia otherwise known as SSM) and RM30 is to be paid as the fee for each name applied. Once your company name is approved by the SSM, it will be in reserve for 3 months following the approval date. This name search can be done online via the My CoID online portal
- Lodgement of registration documents
The registration documents must then be submitted to the SSM within 3 months following the name approval. If the documents are not submitted within the stipulated time, a new Application of Name Search must be lodged. The registration documents include:
1) Memorandum and Article of Association (MAA)
- An original copy of the MAA must be notarized. The first directors and secretaries must be named in the memorandum, and all shareholders are required to sign the document in front of a witness.
- If the filing is for private limited company (Sdn Bhd), the articles of association should also include:
- Restrictions on rights to transfer shares
- Limitations on the number of members (must not exceed 50)
- Prohibition of any member of the public to acquire shares
- Prohibition of any member of the public to deposit money with thecompany
2) Form 48A, Statutory Declaration by a Director or Promoter Before Appointment
- The director is required to declare under oath that they are not bankrupt and have not been convicted or imprisoned for any offences.
3) Form 6, Declaration of Compliance
- A declaration that states all of the Companies Act requirements have been met and signed by the company secretary, as named in the MAA.
4) Original copy of Form 13A
5) A copy of the letter from SSM approving the company name
6) A copy of the ID for each director and secretary
After all the necessary documents has been lodged, the authorities will then review your application and once the application is approved, your company will be issued the Certificate of Incorporation by SSM and your business registration number will be stated on it.
Nevertheless, the process does not end here as having a Business Registration Certificate alone is not enough. Here are other important things you need to do as a business owner once you have successfully obtained your business incorporation certification:
- Opening a bank account-All Sdn Bhd companies are mandated by the law to have a Goods and Services tax (GST) number and can only be obtained by a company with a bank account. The bank account is required to effect payments, share issuance, fees and deposits which usually requires local currency.
- Registration of GST number – The GST is obtained from the Royal Malaysian Customs of Malaysia and it is charged on:
- Any goods and services produced and sold in Malaysia except any zero-rated items
- All goods imported into Malaysia except zero rated items. The Royal Malaysia Customs, Excise Department and the Director of the General of Customs are the authorities who oversee the compliance with GST regulations.
- Registration of income tax and PAYE-The Inland Revenue Board of Malaysia (LHDN) is the main revenue collecting agency of the Ministry of Finance and handles the registration all taxpayers. The registration can be done via online using the MyCoID portal number on LHDN official portal or can be done in person.
- Registration of Employees Provident Fund (EPF) – All employer in Malaysia must register with the Employees Provident Fund (EPF) within 7 days from the first hiring of an employee.
- Registration of social security – Every employer in Malaysia must register for social security for their employees and this can be done at the Social Security Organization (SOCSO/Perkeso).