Company incorporation, despite the numerous benefits that comes with it here in Malaysia 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 as with our simplified and comprehensible step-by-step guide to company incorporation is more than adequate to catered especially for business start-up owners!
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 SuruhanjayaSyarikat Malaysia (SSM), as well as Companies Act (CA) 2016 before proceeding further due to the heavy possible penalties such as large sums of fine or worse, company wind-ups that could be inflicted should a company operate 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: –
– Should not have any form of connection with any lineage /family of royalty or government bodies and authorities. (EG: Royal, Federal, and ASEAN)
– Does not mislead the company’s nature of business
– Is not blasphemous or offensive
– Not resembling or mistaken for another registered company
– Not connected with activities controlled by other laws such as “insurance”, “estate agents”, and “takaful” unless written approval from related agency is attained.
– Not connected 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.
Its preferable to come up with at least 3 ideal company names within either the English or Malay language for ease of choosing. Therefore no, a name such as Sultan’s Cakes wouldn’t be an ideal selection UNLESS you’ve applied for use of those trademarked or controlled words.
Therefore, for example, if your business was in the business of exporting paddy, its business code would then be 01120e.
Paid-Up Capital
Following, just like how cars run on fuel, companies equally require a certain amount of working capital to operate. The minimal amount of capital 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 fundings. It should be noted that declaring a paid-up capital that you do not have is considered illegal.
Business & Registered Addresses
Once the above factors have been considered, another required aspect to look into would be the Business & Registered address. Business address refers to the official location in which company operations and activities take place. However, if your business does not have a physical location, then a business address need not apply.
As for registered address, it relates to the current preceding company secretary’s (or CoSec) office where all company affiliated communications, notices, and documentations are held and accessible to the public during normal business hours.
Configuration of Sdn. Bhd. Company Layout
Finally, we proceed to the main point of our company incorporation article, which is the configuration of a Sdn. Bhd. registered company. Prior to being classified as an Sdn. Bhd. company, the company has to first comply with a series of requirements which are: –
– Company must have at least 1 Director and/or 1 Shareholder for incorporation
– Company’s number of shareholders limited to equal or less than 50 members
– Company’s shareholders’ liability are limited by the amount they invested in
Pertaining to the Director of the company, both locals and foreigners can incorporate a Sdn. Bhd. as either a sole Director or shareholder, provided the following conditions are met for the Director in which s/he: –
– Is 18 years old and above
– Must reside 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…
All these factors can simply be resolved through a partnership with a Company Secretary. At Incorp, our seasoned team of corporate secretarial specialists and professionals are equipped with numerous years of relevant experience, capable of smoothening out your company’s journey towards incorporation, along with other services.
Interested? Feel free to liaise with us through either our email or WhatsApp with the relevant details located below and we’ll revert as soon as possible: –
The 5 Easy Steps in Achieving Successful Company Incorporation!
Company incorporation, despite the numerous benefits that comes with it here in Malaysia 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 as with our simplified and comprehensible step-by-step guide to company incorporation is more than adequate to catered especially for business start-up owners!
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 heavy possible penalties such as large sums of fine or worse, company wind-ups that could be inflicted should a company operate 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: –
– Should not have any form of connection with any lineage /family of royalty or government bodies and authorities. (EG: Royal, Federal, and ASEAN)
– Does not mislead the company’s nature of business
– Is not blasphemous or offensive
– Not resembling or mistaken for another registered company
– Not connected with activities controlled by other laws such as “insurance”, “estate agents”, and “takaful” unless written approval from related agency is attained.
– Not connected 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.
Its preferable to come up with at least 3 ideal company names within either the English or Malay language for ease of choosing. Therefore no, a name such as Sultan’s Cakes wouldn’t be an ideal selection UNLESS you’ve applied for use of those trademarked or controlled words.
Nature of Business
Subsequently, whilst in midst of selecting a name that best represents your company, its also equally important to know which industry
you’re headed for. All businesses in Malaysia are classified via theMSIC Code, a series of number codes that determines the type of industry here in the country.
Therefore, for example, if your business was in the business of exporting paddy, its business code would then be 01120e.
Paid-Up Capital
Following, just like how cars run on fuel, companies equally require a certain amount of working capital to operate. The minimal amount of capital 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 fundings. It should be noted that declaring a paid-up capital that you do not have is considered illegal.
Business & Registered Addresses
Once the above factors have been considered, another required aspect to look into would be the Business & Registered address. Business address refers to the official location in which company operations and activities take place. However, if your business does not have a physical location, then a business address need not apply.
As for registered address, it relates to the current preceding company secretary’s (or CoSec) office where all company affiliated communications, notices, and documentations are held and accessible to the public during normal business hours.
Configuration of Sdn. Bhd. Company Layout
Finally, we proceed to the main point of our company incorporation article, which is the configuration of a Sdn. Bhd. registered company. Prior to being classified as an Sdn. Bhd. company, the company has to first comply with a series of requirements which are: –
– Company must have at least 1 Director and/or 1 Shareholder for incorporation
– Company’s number of shareholders limited to equal or less than 50 members
– Company’s shareholders’ liability are limited by the amount they invested in
Pertaining to the Director of the company, both locals and foreigners can incorporate a Sdn. Bhd. as either a sole Director or shareholder, provided the following conditions are met for the Director in which s/he: –
– Is 18 years old and above
– Must reside 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…
All these factors can simply be resolved through a partnership with a Company Secretary. At Incorp, our seasoned team of corporate secretarial specialists and professionals are equipped with numerous years of relevant experience, capable of smoothening out your company’s journey towards incorporation, along with other services.
Interested? Feel free to liaise with us through either our email or WhatsApp with the relevant details located below and we’ll revert as soon as possible: –
Email: secretarial@elegant.com.my
WhatsApp: +6017-2727118
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