Malaysia is becoming a start-up heaven for businesses. The country offers easy company setup and incorporation process with beneficial tax policies for foreigners as well as locals. According to the world back, Malaysia is the 6th best place
to start and set up a business corporation for foreigners.
So, if you are a foreigner and want to set up a business in Malaysia, here is a complete guide to help you through the process, i.e. an incorporation company in Malaysia.
Requirements For Company Incorporation In Malaysia
Sdn Bhd also commonly known as private limited (Ptd. Ltd. ) is the most popular business entity in Malaysia. According to Companies Act 2016, you can register a company in Malaysia if:
- If you are 18 years or older.
- You have at least one company director who is a permanent resident of Malaysia.
- You have at least one shareholder.
- You have a capital of at least 1 RM.
- You have a valid name for the company.
- You must have a local registered office.
Documents Required
You must prepare several important documents to register your company in Malaysia. Here is a list to help you with the preparation:
- Proposed name of the company
- Whether the company is private or public
- What is the business type
- A registered company address
- Paid-up capital of minimum 1 Ringgit Malaysia (RM) .
- Detailed information on directors and shareholders
Some additional documents that may be required are:
- IC for identity verification
- A letter of authorization if your company name includes controlled words or a trademark.
Guideline For Choose Company Name
According to Malaysian law, you cannot just randomly choose a name for your company. There are some rules that must be followed in naming a company in Malaysia.
- The company name must be unique and not identical to an already registered business.
- The company name should not include any word that means company.
- The company can be in a foreign language, or a combination of a foreign and Bahasa language provided you provide the meaning of the foreign language word used in the name.
- You cannot use common words like company, technology, international, and others in your company name.
- A company director’s name can be included in the company provided supporting documents are submitted proving the relation.
- Certain symbols (and &, Full stop, hyphen -, apostrophe ‘,) can be included in the company name.
- No obscene or controversial should be included in the company name.
- The company name must not include words that show relation to political, religious, government, or law agencies.
Are There Any Charges For Company Incorporation?
Yes!! According to the Companies Act 2016, every time a company applies to register with SSM, they are obliged to pay a registration fee of RM 1,000.
How To Register Your Company?
Now, you can register your business through the online portal (MyCoID) in simple steps. Here is a stepwise guide to help you through the process:
- First, create an account on the MyCoID portal as an individual user.
- Next, you will be sent an email to activate your account. Followed by an email to validate your registration at the nearest SSM Counter.
- After successful activation of your account, you will receive an email to enter login credentials (login ID and password).
- Now, enter your company name in the name search portal on the homepage to check whether the name is already taken
- Enter other information like company purpose, type, and subtype.
- In the next step, you will be asked to submit supporting documents to clarify your chosen name for the company.
- Next, select the business code.
- Enter the company director and shareholders' information.
- Carefully reviewing your application, then press the submit button.
- You will be directed to pay the incorporation fee of RM 1,000.
- After submitting and paying the incorporation fee, you will receive the company registration notice via email. You can collect the registration certificate after paying the prescribed fee.
We hope our guide will help you through the company incorporation process in Malaysia. If you need any more information or help, feel free to contact local experts at Ha & Co Chartered Accountants.
We offer a wide range of accountancy services in Malaysia, including accounting bookkeeping services.
