Incorporating a company in Malaysia is a strategic move that offers access to a dynamic economy and a business-friendly environment. Here's a comprehensive guide to help you navigate the process:
1. Understanding Company Structures in Malaysia
Malaysia primarily offers two types of companies for incorporation:
Private Limited Company (Sdn. Bhd.):
Ideal for small to medium-sized businesses, this structure limits shareholder liability to their share capital.
Public Limited Company (Berhad):
Suitable for larger enterprises aiming to raise capital from the public.
2. Key Requirements for Incorporation
To establish a company in Malaysia, ensure the following prerequisites are met:
Company Name:
Select a unique name that complies with the Companies Commission of Malaysia (SSM) guidelines.
Directors:
A minimum of one director must provide an address of residency either through residence they own/rent or through a service provider such as us.
Shareholders:
At least one shareholder, who can be an individual or a corporate entity.
Paid-Up Capital:
The minimum is RM1; however, certain industries may require higher capital.
Registered Office:
A physical address in Malaysia to serve as the company's official correspondence location.
Company Secretary:
Appoint a qualified company secretary within 30 days of incorporation.
3. Step-by-Step Incorporation Process
Name Reservation:
Submit a name search via the MyCoID system to ensure your proposed company name is available and not infringing on existing trademarks.
Submission of Incorporation Documents:
Prepare and file the necessary documents, including the Constitution (if applicable), details of directors and shareholders, and statutory declarations to SSM.
Registration with SSM:
Upon approval, SSM will issue a Notice of Registration, signifying the company's legal existence.
4. Post-Incorporation Compliance
After incorporation, adhere to ongoing compliance requirements:
Opening a Corporate Bank Account:
Facilitate business transactions by setting up a corporate bank account in Malaysia.
Licenses and Permits:
Obtain necessary business licenses, such as those from Dewan Bandaraya Kuala Lumpur (DBKL), depending on your business activities and location.
Tax Registration:
Register for corporate tax, Sales & Service Tax (SST), and other relevant taxes with the Inland Revenue Board of Malaysia (LHDN).
Statutory Records Maintenance:
Maintain accurate records, including minutes of meetings, financial statements, and registers of directors and shareholders.
5. Timeline and Costs
Timeline:
The incorporation process typically takes 3 to 5 working days, subject to the promptness of document submission and SSM's processing time.
Costs:
Government fees start from RM1,200 for company registration. Additional costs may include professional service fees, name reservation fees, and other administrative expenses.
6. Advantages of Incorporating in Malaysia
Strategic Location:
Proximity to major Asian markets.
Business-Friendly Policies:
Government incentives and support for various industries.
Skilled Workforce:
Availability of educated and skilled labor.
7. Professional Assistance
Engaging with corporate service providers can streamline the incorporation process, ensuring compliance with Malaysian laws and regulations.
Incorporating a company in Malaysia involves careful planning and adherence to legal requirements. By following this guide, you can establish a solid foundation for your business in one of Southeast Asia's most vibrant economies.
