Company formation in Malaysia involves several steps, and it is essential to follow the process to ensure that your company is registered legally and correctly. In Malaysia, this process is quite simple. Companies registered as Public Limited in Malaysia is required to conclude their names with either Berhad or Bhd. Sendirian Berhad or Sdn Bhd must be added to the end of the name of a business that is registered as a private limited company.
Also, the applicant must comply with the eligibility and paperwork criteria as well as the established method in order to complete the Malaysian business registration process. Dont stress your mind as here is a detailed breakdown of the company incorporation procedure in Malaysia:
Choose the type of company
The first step in the company incorporation procedure is to choose the type of company you want to register. The most common types of companies in Malaysia are Sole Proprietorship, Partnership, and Private Limited Companies (Sdn Bhd).
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Sole Proprietorship:
A sole proprietorship is a business owned and managed by a single person. It is the easiest and cheapest type of business to set up, but the owner is personally responsible for all the business’s debts and liabilities.
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Partnership:
A partnership is a business that is owned by two or more people. It is more expensive to set up than a sole proprietorship, but the owners share the business’s profits and losses.
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Private Limited Company (Sdn Bhd):
A private limited company is a type of business that shareholders own. It is a separate legal entity from its owners, which means that the owners are not personally liable for the company’s debts and liabilities. A private limited company is the most common type of business in Malaysia.
Choose a name for your company
The next step is to choose a name for your company. The name must be unique, and it should not be similar to any existing business name in Malaysia. You can check the availability of a name by searching the Companies Commission of Malaysia (SSM) website.
Prepare the necessary documents
- To register your company in Malaysia, you need to prepare several documents, including
- Memorandum and Articles of Association: This document outlines the company’s objectives, rules, and regulations, as well as the rights and duties of the shareholders.
- Form 13A: This form contains the particulars of the company’s directors and shareholders.
- Form 6: This form is a declaration of compliance that states that the company has complied with all the legal requirements for company incorporation.
Register your company with the SSM
Once you have prepared the necessary documents, you can register your company with the SSM. You can do this online through the SSM’s e-Lodgement system or at one of the SSM’s branches. You will need to pay a registration fee based on your company’s share capital.
Obtain necessary licenses and permits
Depending on the nature of your business, you may need to obtain specific licenses and permits from relevant authorities before you can operate legally. For example, if you plan to operate a food business, you will need to obtain a license from the local council.
Register for taxes
You will need to register your company with the Inland Revenue Board of Malaysia (IRB) and obtain your tax identification number (TIN). You will also need to register for goods and services tax (GST) if your business meets the threshold.
Open a bank account
You will need to open a bank account in your company’s name to manage your business finances. You will need to provide the bank with your company’s registration documents, as well as the directors’ and shareholders’ identification documents.
Hire employees
If you plan to hire employees, you will need to register your company with the Social Security Organization (SOCSO) and the Employee Provident Fund (EPF). You will also need to comply with the Employment Act, which outlines the minimum requirements for employment in Malaysia.
Documents needed for the incorporation of the company in Malaysia
- To forward their application for company formation in the Asian nation of Malaysia, each applicant for business registration must deliver the following documentation to the Authority:
- Application for the company to reserve its trade name Information about the planned business activity
- Regulatory Compliance Statement in accordance with the Corporations Act
- Information about the Malaysian official address
- Comprehensive information on the initial directors and stockholders who registered
- Shareholding Shareholders’ Agreement Minimum paid-up capital requirement
- Each Director certifies that they have not been found guilty of any legal or criminal wrongdoing in their home country and have not had their status as bankrupts or insolvents declared undeclared by the relevant authority.
Wrapping up
In conclusion, the company incorporation procedure in Malaysia involves several steps, from choosing the type of company to hiring employees. It is essential to follow the process to ensure that your company is registered legally and correctly. You can also seek the assistance of a company registration. You may receive assistance if you want to fulfill your obligations for Malaysian company formation services on time and hire experts familiar with Malaysia’s complex company incorporation laws. To take this kind of assistance you can directly contact Pikohana.com.