Steps to Incorporating a Company in Malaysia
Most foreign investors opt to open a Sdn Bhd company. The incorporation process for this company is pretty straightforward and can be completed in as few as 2-9 days.
1. Name Search and Reservation (1 Day)
The application for a name search is done to the companies’ registrar.
2. Preparation of Company Incorporation Documents (3 Days)
Incorporation documents to be submitted to the Companies Commission of Malaysia including memorandum of association and articles of association, a statutory declaration by directors, statutory declaration of compliance by the company secretary, statement of allotment of shares, statement of particulars in registration of managers, directors and secretaries, and any changes of particulars, notice of situation of registered office and of office hours, and particulars of change.
3. Submission of Incorporation Documents (2 Days)
The company secretary must arrange the payment for the registration of the Sdn Bhd within 3 months of approval of the name searched and its reservation, and submit the incorporation documents.
A 100% foreign owned Sdn Bhd must have paid-up capital RM 500,000 in the bank before being issued with a certificate of incorporation. For JV, the amounts can range from RM 1,000-70,000 for nominal share capital ranging from RM 400, 000 to over RM 100 million.
4. Opening a Bank Account (1 Day)
For the Sdn Bhd to operate it must have a Goods and Services Tax (GST) number. The Sdn Bhd must have a bank account to obtain this number.
5. GST Number Registration (14 Days)
The company must obtain a GST number which is obtained from the Royal Malaysian Customs if it projects a turnover exceeding RM 1.5 million. The requirements to register a GST number are the company Registration Number, a valid email address, estimates of total taxable supplies, and Industry codes of the business the Sdn Bhd is operating, and bank account information.
6. Income Tax and PAYE Registration (1 Day)
Application for registration as a taxpayer is submitted to the Inland Revenue Board of Malaysia (LHDN). The application can be done online using the MyCoID on LHDN portal e-daftar.hasil.gov.my or in person. The documents needed are the Certificate of Incorporation (Form 9) and the Particulars of Shareholders, directors, manager and the company secretary (Form 49).
7. Registration for Employees Provident Fund (1 Day)
Within 7 days of hiring the first employee, the Sdn Bhd must register with the EPF. The documents required registration of the EPF are an application Form KWSP 1, a certified copy of identity card or passport of one director or authorized person, a certified copy of Forms 9 and 49, the first month’s contribution in as a cheque or bank draft.
8. Social Security Registration (1 Day)
The Sdn Bhd must register for social security if it is taking on more than 8 employees. The registration is done by the Social Security Organization (SOCSO- Perkeso).