The 5 Easy Steps in Achieving Successful Company Incorporation in Malaysia!

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The 5 Easy Steps in Achieving Successful Company Incorporation in Malaysia!

November 17, 2021 incorp 0 Comments

Reading Time: 4 Minutes –

Having your company incorporated has a large number of benefits that come alongside it. In Malaysia however, it may seem like a daunting task, especially with the immense number of paperwork and resources having to be considered.

 

However, that shouldn’t be the case! With our simple and comprehensible step-by-step company incorporation guide catered especially for business start-up owners, this makes you more equipped than ever in starting the incorporation process.

 

Suruhanjaya Syarikat Malaysia (SSM) & Companies Act 2016

To begin, it’s imperative that potential business owners ought to both comprehend and understand the rules and regulations imposed by the Companies Commission of Malaysia (CCM) also known as Suruhanjaya Syarikat Malaysia (SSM), as well as Companies Act (CA) 2016 before proceeding further due to the possible heavy penalties such as large sums of fine or worse, company wind-ups as a result of the company operating non-compliantly.

 

Company Name Search

Also, before incorporating a company, it’s advisable to select a name that best represents your company. However, not just any name meets the mark as according to guidelines issued by Commission of Companies Malaysia (CCM) or Suruhanjaya Syarikat Malaysia (SSM), it should be noted that your company name DOES NOT: –

 

– Have any connection with any lineage/family of royalty or government bodies and authorities. (EG: Royal Family, Federal Government, and ASEAN)

– Mislead the company’s nature of business

 

– Sound blasphemous or offensive

 

– Resemble or mistaken for another registered company

 

– Connect with activities controlled by other laws such as “insurance”, “estate agents”, and “takaful” unless written approval from related agency is attained.

 

– Connect with activities regulated by government agencies or professional bodies with words like “architect”, “co-op”, and “engineer” unless written approval from relevant agency is attained.

 

Hence, its preferable to come up with at least 3 ideal company names prior within either the English or Malay language. 

 

Also, names such as Sultan’s Cakes wouldn’t be an ideal selection UNLESS you’ve applied to use those trademarked or controlled words.

 

Nature of Business

Subsequently, whilst in the midst of selecting a name that best represents your company, its equally important to know which industry you’re headed for. All businesses in Malaysia are classified via the MSIC Codea series of number codes that determines the type of industry here in the country.
Therefore, for example, if your business was in the industry of exporting paddy, its business code would then be 01120e.

 

Paid-Up Capital

Just like how cars run on fuel, companies equally require a certain amount of working capital to operate. The minimal capital amount to run a company is RM1, although it’s advisable to commence with an amount equating to RM100.

 

However, as running a business takes copious amounts of resources, its preferable to cap your paid-up capital at an amount of RM10,000 and increase it once you have been successfully incorporated and possess the necessary funding. 

 

This is due to declaring a paid-up capital which you do not have being considered illegal and punishable!

 

Business & Registered Addresses

Once the above factors have been considered, another required aspect to look into would be the Business & Registered Address. Business addresses refers to the official location which companies operate their addresses. 

 

However, should your business not have a physical location, then a business address need not be applied.

 

For registered address, it relates to the current preceding company secretary’s (or CoSec) office where all company affiliated communications, notices, and documentations are both held and accessible to the public during normal business hours.

 

Configuration of Sdn. Bhd. Company Layout

Finally, prior to being classified as a Sdn. Bhd. company, the company has to first comply with a series of requirements such as: –

– Company must have at least 1 Director and 1 Shareholder for incorporation

 

– Company’s number of shareholders are limited to equal or less than 50 members

– Company’s shareholders’ liability are limited by the amount they have invested in

 

Pertaining to the Director of the company, both locals and foreigners can incorporate a Sdn. Bhd. as sole Director and Shareholder, provided the following conditions are met for the Director in which s/he: –

– Is 18 years old and above

– Must reside in Malaysia (By having a principal place of residence in Malaysia)

– Not disqualified under Section 198 of Companies Act 2016

Upon assuring all the above factors are accounted for, SSM will be able to commence incorporation for a fee of RM1,010 (inclusive of tax). Alternatively…

 

These factors can simply be resolved through partnering with a Company Secretary…

 

At Incorp, our seasoned team of company secretaries are equipped with 38 years worth of professional experience in company secretary matters, being capable of smoothening out your company’s incorporation process while providing other company secretary related services ranging from effective document preparation, jotting of meeting minutes, and more!

 

Interested? Feel free to connect with us through either our email or WhatsApp and we’ll revert back to you as soon as possible: –

Email: secretarial@elegant.com.my

WhatsApp: +6017-2727118

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