The Procedures For a New Company Incorporation in Malaysia

 

New company incorporation in Malaysia and opening of its corporate bank account are straightforward methods, which can be co pleated in five weeks. Our client will not have to travel anywhere, provided that a Power of Attorney is issued to the Malaysia incorporation agent who will then complete all procedures on his behalf.

Company formation in Malaysia

Foreign investors seeking to do business in Malaysia are allowed to set up any of the following entities-

1. Private Limited Company (Malaysian- Sendirian Berhad or Sdn Bhd)

2. Foreign Company

For formation and incorporation, a company in Malaysia can establish a Private Limited Company (Sdn Bhd). This authorized entity requires a minimum of one shareholder and at least one resident director. Stockholders are solely responsible for the extent of their contribution to the capital. An Sdn Bhd can only have a maximum of 50 shareholders and its company shares are not liable to the public.

Foreign investors who own existing businesses abroad and want to build a local branch in Malaysia for local services or back-office purposes can set up a Foreign Company. This kind of entity doesn’t require a resident director.

Requirements for setting up a company in Malaysia

Proposed company name

Foreign individuals must reserve a company name with the corporate registry, the Companies Commission of Malaysia (SSM), to register a business. They are advised to prepare at least three alternative company names in case their first option is already taken or denied due to several reasons such as the proposed name is already reserved, offensive contains restricted words, or closely resembles a registered company name/s.

Shareholder/s

At least one shareholder is needed for Sdn Bhd. Shareholders can be a body corporate or an individual. Sdn Bhd can only have a maximum of 50 shareholders. The Malaysia Companies Act of 2016 allows sole individuals to register an Sdn Bhd. They can be the just shareholder and directors of the company.

Director/s

For Sdn Bhd, at least one resident director is needed. Such an individual must not be a disqualified director under the Companies Act (i.e., under 18 years old, bankrupt, or convicted of any offense).

Corporate secretary

Those seeking to incorporate an Sdn Bhd must designate a Corporate Secretary within 30 days of incorporation. To be qualified to consider the role, the Corporate Secretary must have a primary place of residence in Malaysia and requires to either be licensed by the SSM or be a member of a professional association appointed by the Ministry of Domestic Trade and Consumer Affairs.

What to do after company incorporation in Malaysia?

After successfully incorporating a company, the business owner must apply for necessary business permits or licenses before starting services. The particular documents required may vary depending on the nature of business activities, industry, and/or business location. Additionally, business owners are obliged to open a corporate bank account and designate auditors from a list approved by the SSM. They are also required to make yearly reports to SSM. The Companies Act requires yearly returns to be made within 30 days of the anniversary of incorporation.

There are also additional corporate compliance necessities associated with income tax, Sales and Services Tax (SST), Employees Provident Fund (EPF), social security, and many others.