Malaysian company registration guidelines for local

INCORPORATION OF A COMPANY MALAYSIA – Through this Malaysia Company Registration guide, you can gain an understanding of the company registration in Malaysia process, new business registrations in Malaysia, register company online Malaysia and how to register a company in Malaysia.

There is a number of requirements you must comply with if you wish to start the registration of a new company, register company in Malaysia and operate business here in Malaysia. We strongly urge you to engage Business AD, the best Malaysia Company Incorporation Package, to help you through this rather complex Malaysia business registration process of setting up your Malaysia Corporation or open company in Malaysia.

Foreigners can register a 100% foreign-owned company in Malaysia depends on the business nature. However, self-registration of a new company or self-register a new company in Malaysia is not permitted for foreigners in Malaysia.

The two types of companies that can be incorporated under the Companies Act 2016 are:

• A company limited by shares
• An unlimited company

1. COMPANY LIMITED BY SHARES

A company having a share capital may be incorporated as a private company (identified through the words ‘Sendirian Berhad’ or ‘Sdn. Bhd.’ appearing together with the company’s name) or public company ‘Berhad’ or ‘Bhd’ appearing together with the company’s name).

The requirements to form a company or opening a company are:

(i) A minimum of one subscriber to the shares of the company (Section 14 CA);
(ii) A minimum of one director (Section 122); and
(iii) A company secretary who can be either :

• An individual who is a member of a professional body prescribes by the Minister  of Domestic Trade Cooperative and Consumerism; or
• An individual licensed by the Companies Commission of Malaysia (SSM)

Both the director and company secretary shall have their principal or only place or residence within Malaysia.
 

A. INCORPORATION PROCEDURES

1. Filing Application of Company Name Search

A name search must be conducted to determine whether the proposed name of the company is available for open company in Malaysia. Refer to Guidelines For Naming A Company and Guidelines For Application Of A Company Name. The steps involved are:

Completion and submission of Form 13A CA (Request for Availability of Name) to SSM; and
Payment of a RM30.00 fee for each name applied for Malaysia company registration.

Where the proposed company’s name is approved by SSM, it shall be reserved for three months from the date of approval.

2. Lodgment of Incorporation Documents for Malaysia Company Registration
Incorporation Documents (as further explained in Part B below) must be submitted to SSM within 3 months from the date of approval of the company’s name by SSM, failure of which a fresh application for a name search must be done before open company in Malaysia. (Steps (i) and (ii) above shall have to be repeated).

B. DOCUMENTS TO BE LODGED WITH SSM FOR INCORPORATION

1. Constitution (formerly known as Memorandum and Article of Association)
An original of the Constitution (formerly known as Memorandum and Article of Association) shall each be stamped at RM100.00. Stamps are affixed at the Inland Revenue Board’s stamp office.

• The first directors and secretaries shall be named in the Constitution (formerly known as Memorandum and Article of Association).
•  The subscribers to the company’s shares shall sign the Constitution (formerly known as Memorandum and Article of Association) in front of a witness.
•  Table A of the Fourth Schedule in the CA can be adopted as the Constitution of the company (Section 30 CA).

*NOTE: For incorporation of a private company, the articles of association shall contain the following stipulations.

• Restriction  on the right  to transfer the company’s shares;
•  Limitation on the number of members to not exceed fifty;
•  Prohibition to any invitation to the public to subscribe the shares/debentures of the company; and
•  Prohibition on public invitation to deposit money with the company.

2. Form 48A (Statuary Declaration By A Director Or Promoter Before Appointment)
The director or promoter declares under oath that:

•  He/ She is not a bankrupt; and
•  He/ She has not been convicted and imprisoned for any prescribed offences.

3. Form 6 (Declaration of Compliance)
This declaration states that all the requirements of the CA have been complied with. It must be signed by the company secretary who handles the SDN BHD Company registration services and is named in the Memorandum and Articles of Association.

4. Additional Documents:

• Original copy of Form 13A.
• A copy of the letter from SSM approving the name of the company.
• A copy of the identity card of each director and company secretary.

C. REGISTRATION FEES

Under the new Companies Act 2016, a flat registration fee of RM 1, 000 is payable to SSM for each application for the incorporation of a company and register company online Malaysia.

Under the old Companies Act 1965, each application for the incorporation of a company shall be accompanied with payment as per the schedule follows:

AUTHORISED SHARE CAPITAL (RM)	FEES (RM)
Up to 400,000	1,000
400,001 – 500,000	3,000
500,001 – 1 million	5,000
1,000,001 – 5 million	8,000
5,000,001 – 10 million	10,000
10,000,001 – 25 million	20,000
25,000,001 – 50 million	40,000
50,000,001 – 100 million	50,000
100,000,001 and above	70,000

D. NOTICE OF REGISTRATION

A notice of registration (formerly known as Certificate of Incorporation) will be issued by SSM upon compliance with the incorporation procedures and submission of the duly completed Incorporation Documents.

2. UNLIMITED COMPANY

The procedures and Incorporation Documents for the incorporation of an unlimited company is the same as company limited by shares. The only difference is that for an unlimited company, the liability of its members must be stated in the Constitution (formerly known as Memorandum and Article of Association) as unlimited.