In this blog, we will be taking you through everything about how to register a company in Malaysia. This article is an invaluable guide that will teach you what steps you need to take in order to make the process as easy and smooth as possible.
How to Register a Business in Malaysia
There are steps that must be followed for a business to be officially registered in Malaysia. First, the business owner must file an application for the company’s registration with the Registry of Companies. After this, there is a period of waiting time before the application can be submitted to the Ministry. If there are any objections from other companies or groups, then a legal representative (lawyer) will be hired. The final step is to submit a certificate of completion from the Legal Representative that includes all necessary documents and fees paid.
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Types of Business Incorporations to Choose from Sendirian Berhad (Sdn Bhd) – Private Limited Company
Sendirian Berhad, a Malaysian private limited company, can be registered with the registrar of companies. It is a type of company limited by shares. A company will have a maximum of 50 shareholders, and its shares are not publicly available. According to their proportionate shareholding, all shareholders are liable to contribute capital to the company. The amount contributed will be deducted from this shareholder’s shareholding in proportion to the amount contributed until the required amount is reached. It will be divided among all other shareholders on an equal basis. Private limited companies must also hold an annual general meeting, where shareholders vote on important financial matters for the year.
Berhad (Bhd) or Public Limited Company
A public limited company established under the law of Malaysia has limited liability. The company’s aim is to pay its shareholders dividends, usually in the form of capital gains. A public limited company is generally owned by one or more companies that are referred to as the ultimate holding capacity and therefore share an equal shareholding with all other shareholders in the public limited company.
Limited Liability Partnership
A limited liability partnership (LLP) is a business entity that provides the same limited liability protection as a corporation. Instead of having unlimited liability, the general partners are personally liable for partnership liabilities to the number of investments or debts they have personally guaranteed under their personal guarantee agreement. This liability is limited to the extent of capital contributed by each partner.
Sole Proprietorship
A sole proprietorship is a legal business entity in which the business is owned and run by one person, who assumes complete liability for its debts.
In Malaysia, there are two types of businesses:
- A sole proprietorship
- An unlimited company
A sole proprietorship can be used to conduct any type of business that does not require a large amount of capital to start.
Required Documents for a Business
A registered company online in Malaysia with the help of the goverment. The company should submit its Articles of Association and Memorandum & Business Plan to register a business. Other documents that can help secure the registration include a letter of appointment and a letter of recommendation.
List of Necessary Documents:
- A copy of the certificate of Incorporation
- A certified copy of the company’s registration
- Certified copy of MOA of the company
- Submit filled forms 13A, 79 and 80
- A copy of the company name approval document issued by SSM
Conclusion
The first thing you need to do is decide what kind of company you want. You can choose from a sole proprietorship, partnership, limited liability company, or corporation. Next, you need to decide on your company’s name and the address where it will be based. Then you have to appoint an initial director and secretary who must be Malaysian citizens and meet specific requirements. After completing these steps, your company should be registered in Malaysia within one month of starting operations.
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