Requirements for Registering a Company in Malaysia

The foreign company registration process in Malaysia is quite a straightforward process. The governing bodies in Malaysia have passed the foreign investment promotion regulation in the country, permitting the preponderance of overseas ownership for such organisations.

So, before we delve into the bigger picture of the company registration process, let us help you comprehend the primary requisites.

Take a glance at these crucial data:

• The public registered companies have the suffix in the company name Berhad (BHD)

• The privately registered companies have the suffix name Sendirian Berhad (SDN BHD registration in Malaysia)

• The Companies Act, 2016 is the ruling law that regulates company registration processes in Malaysia. Any overseas applicant who wishes company registration in the country has to abide by Section 14 of the same act.

• Suruhanjaya Syarikat Malaysia (SSM) is the chief operating authority for company registration in Malaysia and the nodal agency, the Companies Commission of Malaysia.

If you aspire to start a business in Malaysia, you would probably want to deal with one of the following sectors to get local government support in all forms:

• Education

• Tourism outbound and Ticketing

• Petroleum, oil, and gas

• Agriculture, finance and Banking

Incorporation of a foreign entity in Malaysia would require the owner to use any one of the methods:

1. Completing SDN BHD registration in Malaysia with SSM through registration

2. Partnering with a local organizsation with the SSM

Applicants can integrate two company genres in Malaysia in conformity with the Malaysian Companies Act. They are:

• Company with no limitation by shares- This genre will have companies with both private and public incorporations. However, the liability of company members must be stated in the Memorandum of Association as unlimited.

• Company with share limitations- An organisation with a share capital may be integrated either as a public company BHD appearing with the company’s name or as a private company SDN BHD registration in Malaysia appearing together with the company’s name.

An applicant has to satisfy the following requirements to establish a company in Malaysia. Look below to learn them:

• Two shareholders

• Two directors

• Company secretary (must be a member of a professional body, an individual who has been given license by SSM, and must reside in Malaysia)

• The applicant must establish a company with proper objects- refrain from carrying out unlawful activities.

• Residence of directors

Procedure for company registration in Malaysia:

• Name search- Visit the website and login to the portal> click on New Name Reservation> search your company name> the name must comply with companies’ act of Malaysia requirement.

Reserve the name- Reserve your company’s name in advance (log into the website and enter the form 13A and fill in sections provided)

1. Incorporation details

2. Declaration

3. Payment

4. Notice of registration

5. Certificate of incorporation

Documents required for company registration:

• The original name of the applicant in Form 13A and one copy.

• A letter from SSM approving the company’s name and its copy.

• The identity proof of each proposed director and company secretary and their copies.

• Declaration of Compliance, which has to be signed by the company secretary of the registered company. The name of the company secretary would be present in the memorandum of association and articles of association.

• Memorandum of Association signed and stamped by the SSM.

• The information on the subscribers and directors of the company.

So, here is a brief of how set up a company in Malaysia:

A new company registration in Malaysia is a dream for many because the country is gaining traction as one of the fastest investment destinations. Look below to learn about the steps required to start a business in Malaysia:

1. Create a business plan

2. Evaluate your finances

3. Decide the business type and the sector you want to work for

4. Name your business

5. Identify marketing and brand strategy

6. Scout for a business premise

7. Have a legally registered local office address

8. Submit your incorporation document to SSM within three months from the company’s approval date by SSM

9. Pay the registration fees

10. After a successful payment transaction, your business will get a new business registration certificate

Parting thoughts

Expanding or starting a business from scratch in any sectors mentioned in this blog in a foreign land is possible, especially in Malaysia. Venture into the new experience only after enlightening your minds with the knowledge provided in this blog. Go through each section diligently and only then apply for the company registration process in Malaysia. Based on observations made by experts, it is still easy to launch a business in Malaysia than in other neighboring countries like Indonesia and Thailand.