Setting Up a Sdn Bhd Company in Malaysia

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Setting Up a Sdn Bhd Company in Malaysia

2020-07-10T10:29:08+08:00June 7th, 2016|Comments Off on Setting Up a Sdn Bhd Company in Malaysia

Setting up a company in Malaysia using SDN BHD structure is the best choice for an Entrepreneur. One major advantage is that the income tax risk exposure is low

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Setting Up a Sdn Bhd Company in MY

 

Malaysia has become one of the prime destinations in Asia for company registration. In Malaysia, foreigners can own 100% of the company if the company has been registered as a Sdn Bhd company.

The Companies Commission of Malaysia (SSM) is the governing body which oversees all company registration in Malaysia. The registration must be done through a local certified company secretary. 

Paul Hype Page & Co provides company registration services and our one-stop solutions will serve every business need you have so that you may quickly and effectively register your company in Malaysia. 

 

Malaysia Company Registration Benefits

  • Strategic location in Asia 
  • Ranked 15th by the World Bank in 2019 for ease of doing business 
  • No restrictions when it comes to repatriation of capital, profits, royalties, and dividends 
  • Double taxation treaties with many other countries
  • Low start-up costs and rental rates  

Those who register a Sdn Bhd company in Malaysia will experience the following benefit: 

  • Limited liabilities 
  • Business continuity because a Sdn Bhd company will never expire 
  • Ease of acquiring loans
  • Low income tax risk exposure
  • Company is considered a separate legal entity 

 

Important Points to Consider Before Registering a Company in Malaysia

There are certain points to be considered by those planning to register a company in Malaysia. They are as follows: 

  • Business field 
  • Business plan 
  • Business entity 
  • Licenses and approvals  
  • Registration costs
  • In the case of foreigners, other problems which may specifically arise with regard to foreigners living and working in Malaysia 

Thinking of incorporating in Malaysia? Let’s get started. 
E A S I E R • F A S T E R • B E T T E R

 

Business Entity Options in Malaysia

The types of business entities from which one may choose for the registration of a company in Malaysia are the sole proprietorship, partnership, and Sendirian Berhad (Sdn Bhd) company. The following paragraphs will explain more about the Sdn Bhd company and how one may be set up in Malaysia. 

 

Incorporation of a Sdn Bhd Company in Malaysia

The process of registering a Sdn Bhd company in Malaysia is similar to the registration processes related to all of Malaysia’s other business entities. Before one may register a company in Malaysia, the prospective company owner is required to perform a company name search. This is a mandatory step. The chosen company name must be reserved for the incorporation process once it has been approved. The chosen company name will be reserved for a period of three months from the date of approval. 

 

Requirement of Set Up Company in Malaysia

To register a Sdn Bhd company in Malaysia, the following are required: 

  • Company name 
  • Business activities 
  • Registered office in Malaysia
  • Director who is at least 18 years old, not a convicted criminal during the last five years, not bankrupt, and either resides in Malaysia or holds any of the usable work visas
  • Shareholder
  • Corporate secretary who must be a member of any of the prescribed professional bodies, licensed by SSM, or both
  • Minimum paid-up capital of RM2
  • Copy of all directors’ and shareholders’ Identification Card (IC) or passport 

 Duration of Each Step of Sdn Bhd Company Registration 

Timeline for Registration of a New Malaysia Company

Those who choose to register a Sdn Bhd company in Malaysia can expect the following durations for each step of the process: 

  •  Company name search – within 24 hours 
  •  Preparation of registration documents – within 2-3 days
  • Signing of documents by all directors and shareholders – within 1 day
  •  Submission of documents to SSM – within 3-5 days
  •  Digital incorporation certificate issued by SSM – within 1 day 

These durations are estimates; in some instances, delays may occur if SSM needs more time to verify the incorporation documents provided. It is incumbent on the prospective company owner to ensure that all information submitted for incorporation purposes is accurate. 

(*Disclaimer – SSM shall not be liable for any misuse of information caused by the usage of any information from this website)

Company Secretarial Services

A company secretary is an important part of a business as it is the company secretary who will have to deal with regulations, policies, standards, code of ethics, and guidelines during the company registration process. At Paul Hype Page & Co, our company secretarial services will ensure that our experienced corporate specialists will not only supply you with our best practices, but also provide you with our full range of services including advisory services, statutory services, preparation of resolutions, and others. All of our company secretarial services follow the regulations stipulated in the Malaysia Companies Act 2016.

 

Why You Should Choose Paul Hype Page & Co

At Paul Hype Page & Co, our expertise truly stands out.We will offer you the full range of services to help you find your business success in Malaysia. As a leading corporate service provider, we ensure that your company incorporation in Malaysiais completed smoothly while fulfilling all the existing compliance laws and regulations.

 

 

 

Setting Up a Sdn Bhd Company in Malaysia FAQs

What names may not be chosen for a Company based in Malaysia?2020-04-27T14:32:54+08:00

In Malaysia, certain names may not be used for the purposes of naming a company. These names include names related to royalty; names related to state, federal, or foreign governments or international organizations; names related to political parties, associations, or trade unions; misleading, blasphemous, or offensive names; names which are translations of or too similar to an existing registered company name; or names including certain banned words. 

In which situations is starting a Sole Proprietorship or Partnership preferable to starting a Sdn Bhd Company?2020-04-27T14:32:14+08:00

There are certain instances in which it is more advisable for a prospective business owner to start a sole proprietorship or partnership. The primary examples of such scenarios involve entrepreneurs who are planning to start a small or medium-sized enterprise (SME) as a start-up. However, this may only be done by locals; foreigners may set up neither a sole proprietorship nor a partnership.

How has Malaysia’s ranking with regard to ease of doing business changed over the years?2020-04-27T14:31:18+08:00

Ever since the introduction of the Ease of Doing Business rankings in 2006, Malaysia’s ranking has not changed much. In almost every year of the rankings, Malaysia has been ranked between 12th and 25th. The exception was in 2014, when its ranking peaked at sixth.