The most common type of company in Malaysia is a private limited company, also known as a Sendirian Berhad (Sdn Bhd) company. Since a Sdn Bhd company is a company with limited liability, it will be considered as a separate legal entity from its shareholders. This means that business owners will only be held liable for the number of shares they have in the company. If you are planning to proceed with Malaysia company registration, you are most likely looking at private limited company incorporation in Malaysia. With the launch of online registration platforms, you can easily register your company without having to travel to Malaysia, by following the steps below.
Steps to private limited company incorporation in Malaysia
Step 1: Register an online account with MyCoID 2016
Step 2: Check the availability of your company’s name in MyCoID 2016
Step 3: Register private limited company in MyCoID 2016
Step 4: Register your employees with the SOCSO
[ps2id id=’step1′ target=”/]#1 Register an online account with MyCoID 2016
- MyCoID 2016 is an online service launched by the Companies Commission of Malaysia (SSM), which allows individuals who are setting up business in Malaysia to complete company formation. You can register as an individual or a professional, depending on your position in the company. Throughout the application, you will be required to provide detailed information about your company. Once you have registered an account, you will be able to proceed with the application for private limited company incorporation in Malaysia.
[ps2id id=’step2′ target=”/]#2 Check on the availability of your company’s name in MyCoID 2016
- Before you start on the actual registration of your company with the SSM, you will first have to decide on your company’s name. To check on the availability of your desired company name, you will have to log in to your MyCoID 2016 account. After clicking on the ‘New Name Reservation Application’ menu, you will be able to search for the availability of your company’s name via the ‘Name Search’ page. In addition, you can reserve your company’s name for up to 30 days for a fee of RM 50. Additional fees will be charged if you wish to extend your reservation.
[ps2id id=’step3′ target=”/]#3 Register private limited company in MyCoID 2016
- After you have ensured that your desired company name is available for registration, you can proceed to fill up the registration form. You can incorporate your company in Malaysia either through Direct Incorporation or Incorporation from Reserved Name (if you have reserved your company’s name). Do note that if you have registered as an Individual for your MyCoID 2016 account, you will automatically be recorded as the director of the company.
- Before you register your company in MyCoID 2016, it is also important to ensure that your company meets the requirements for a private limited (Sdn Bhd) company in Malaysia. To be eligible, you will need to have at least one resident director, one company secretary and one shareholder. The company secretary will need to be a member of a professional body authorized by the Minister of Domestic Trade Cooperative and Consumerism or be licensed by the SSM. Both the resident director and company secretary must be at least 18 years old and have their place of residence in Malaysia. Your company will also be required to have a registered office in Malaysia, and you will need to open a corporate bank account after you have finished your registration.
- Under the Companies Act 2016, a registration fee of RM 1,000 will be required by the SSM in order to incorporate a company in Malaysia. In addition, foreign entrepreneurs are permitted to own 100% of their company in Malaysia as long as there is a minimum of RM 500,000 paid-up capital in their company. However, this amount may be higher depending on the industry your business belongs to.
[ps2id id=’step4′ target=”/]#4 Register your employees with the Social Security Organisation (SOCSO)
- The SOCSO is an organisation in Malaysia that aims to implement the Employees’ Social Security Act and the Employees’ Social Security (General) Regulations, by providing social security to workers through medical insurance. There are two general schemes governed under this Act – the Employment Injury Scheme and the Invalidity Scheme. Both schemes protect and insure employees against occupational accidents, illnesses, or death.
- It is mandatory for all employees, both Malaysian and non-Malaysian, to be protected under the Social Security Organisation, as of January 2019. As long as you are setting up business in Malaysia, you will be required to register with SOCSO within 30 days after you have hired a new employee. The registration form can be downloaded from the SOCSO website.
Looking to start a business in Malaysia?
Due to the low cost of setting up a company in Malaysia, Malaysia has historically been an attractive place for foreign entrepreneurs hoping to expand their business to Asia. While the steps to register a business in Malaysia may appear to be relatively straightforward, it can be quite challenging to complete certain forms because the instructions or the forms themselves may be documented in Bahasa Melayu, the official language in Malaysia. You may also be required to submit corporate documents written in Malay after you have registered your company in Malaysia.
As such, you may wish to engage the services of Tetra Consultants. Tetra Consultants will provide you with a fast and simple way to register your company in Malaysia through our service package, which includes registering your company with the SSM, securing a work visa for you and your partners, opening a corporate bank account, assisting in accounting and tax obligations, and providing a nominee resident director and a local company secretary, in accordance with the requirements to set up a company in Malaysia. Tetra Consultants will also liaise with a certified translator to help you translate corporate documents to the desired language, if necessary.
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