Basic Guide to Incorporate A Company in Malaysia

Malaysia’s swift incorporation process and ease of doing business make it one of the best locations to incorporate a company in the Asia Pacific region

Business owners need to register their company with the Companies Commission of Malaysia or locally known as the SSM or Suruhanjaya Syarikat Malaysia. SSM is responsible for regulating and overseeing business and corporate affairs in Malaysia. The incorporation of companies in the country is a relatively straightforward process. This article guides you through how to properly incorporate a company in Malaysia.

What to Do Before Incorporating a Company in Malaysia?

Business owners planning to incorporate their company should first take certain steps before starting the incorporation process to improve their success odds and enhance their business’s quality before establishment. These steps include:

• Create a Robust Business Plan: A business strategy is critical to the success of any company. It helps business owners identify and analyse business opportunities and assess their ventures’ feasibility. It also serves as a roadmap to guide the company’s course.
• Conduct Proper Market Research: Proper market research allows the company to identify the current trends in its industry, its biggest competitors, risks, demands and the target market for its products or services.
• Evaluate Finances: Business owners need to assess their finances to determine if they require any extra funding solutions.

How to Incorporate a Company in Malaysia?

Under the Companies Act 2015, company incorporation may be made by those who wish to establish a company. The basic requirements are as follows:

• Private Company: One promoter and a minimum of one director who ordinarily lives in the country and has a principal residence place.
• Public Company: At least one promoter and a minimum of two directors residing in the country and own a principal residence place.

To incorporate a local company, applicants can choose to incorporate via direct incorporation or a name reservation. For direct incorporation, applicants are required to complete the application for incorporation and the company’s name via MyCoID 2016 system and with a payment fee of RM 1,000. Once the SSM approved the proposed company name, the system will forward the application to the officer for further confirmation.

On the other hand, applicants who choose to incorporate a company via name reservation need to complete the details for the application for company’ names via MyCoID 2016 systems with a payment fee of RM 50 for every name applied. The approved company’s name will be reserved for thirty days from the approval date. Afterward, the applicants can apply for incorporation with a RM 1,000 fee.

Foreigners who wish to incorporate a company in the country needs to meet the following conditions:

• Foreign director or member must be above 18 years of age
• Those who named as the company’s director should have an only or principal place of residence in the country

What to do Post-Incorporation?

Upon successful company incorporation, business owners need to obtain the necessary business permits, licences, or approval from relevant authorities before commencing their operations. Depending on the company’s location, business activities and industry, the compliance requirements for the procurement of business licenses may vary. The public limited company is required to lodge further documentation with the SSM.

The company must appoint a company secretary within thirty days after the incorporation of the company in Malaysia. The company may also consider adopting any constitutional documents, setting up a corporate bank account and have to comply with every corporate requirement under the Companies Act, which includes provisions related to income tax, SOCSO and EPF.

Getting Help from a Professional Company Incorporation Services Provider in Malaysia

Professional company incorporation agencies help streamline the company incorporation process in Malaysia and ensure the company stays compliant with its distinctive legal and regulatory requirements.