The Sdn Bhd Malaysia Company can be started by a foreigner easily. Malaysia is known to everyone as the most prime developing country among all Asian countries in the world. The country has a growing economy which allows foreign investors to start a business in Malaysia. There is a variety of businesses you can register in Malaysia. Those business will be discussed in this article.
There are several types of business where an investor can invest in both the small and large scale companies in Malaysia. The business categories in Malaysia are:
- Sole Proprietorship
- Limited Liability Partnership, (LLP)
- Private Limited Company (LLC), Also knowsn as Sdn Bhd Company in Malaysia
- Public Limited Company, knows as Berhad (Bhd)
- Companies limited by guarantee
- Foreign branch companies
Private Limited Company in Malaysia (Sdn Bhd)
Among all the business categories, the highly preferable business in Malaysia is a private limited company or Sdn Bhd company in Malaysia. This is the most preferable business for both local and foreign investors because of the benefits and outcomes the company brings in for the investors. The Sdn Bhd Malaysia company is allowed to have a separate legal identity, asset, or properties on its own, maintain debts, work up with new contracts, and most importantly the ability to sue. These companies are the most reliable, trustworthy, and acceptable ones among all of the Malaysian population
Sdn Bhd Company Benefits
The benefits of Sdn Bhd company in Malaysia are provided below:
- The liability is limited in Sdn Bhd company. The entrepreneurs or investors personal wealth is protected if the business fails or goes complete loss.
- The Income tax in Malaysia is low. Sdn Bhd Company is considered as a separate legal entity so the tax planning system is said to be better than all others. You can save 20% tax if you consider personal tax.
- The business never stops and never gets expired
- Bank loans are more easy to get for Sdn Bhd company than any other company in Malaysia.
Registering your business can look tricky. A few steps need to be followed. Registering your company in Malaysia can get beneficial.
Required Information for Company Registration in Malaysia
- Company proposed name and information
- Business activities (legal activities)
- Copy of all directors’ and shareholders’ I/C or Passport and Valid ID
- Appropriate and valid residential address of all directors
- Pais-up capital less than RM2 to more than RM2500
- Shareholding by each shareholder, directors, and board members
It is important to have a look at the steps and guidelines for company registration in Malaysia.
Time Requirement for Each Process of Registration
|Valid company name search||24 hours|
|Preparation of registration documents||2 – 4 days|
|Directors & shareholders||1 day|
|Submission to SSM||3 – 5 days|
|Digital incorporation Cert issued by SSM||1 day|
|Submission of Form 24, 44 & 49||1 day|
License Requirements for Sdb Bhd Malaysia Company
For Company to run in Malaysia you must have a valid license and permits. This is compulsory for all entrepreneurs and investors when they register a private limited company or Sdn Bhd company in Malaysia. There are at least 8 different licenses required for legally running a company. Such licenses are:
- Company Registration Licenses approved by the Company Commission of Malaysia
- Company Tax Registration approved by Inland Revenue Board (IRB)
- Employees Provident Fund
- Social Security Organization approved by Perkeso
- Business Premises License approved by Local Town Council
- Signboard Licenses approved by Local Town Council
- Halal Certificate
- Human Resource Development approved by the Human Resource Board
Sdb Bhd Company in Malaysia is, with no doubt, the best business structure. It has more benefits than drawbacks. The prime sectors for investment in Malaysia are gas, construction, oil, and IT. Other sectors are also profitable such as garments, jewelry, electronics, restaurants, etc. All business natures can be done by an Sdb Bhd Company in Malaysia.
Sdn Bhd Malaysia Company Registration Cost
When registering Sdn Bhd company in Malaysia you must consider the government fees involved. The government fees are RM1000 and less than 1100 (suruhanjaya syarikat malaysia (SSM) charge) as registration cost. Other costs for collecting additional company registration paperwork are:
- CTC company profile – RM15
- CTC Incorporation – RM15
- CTC name change – RM15
- CTC particular of share capital – RM15
- CTC particular of registered address – RM15
- CTC particular of directors – RM15
- CTC particular of shareholders – RM15
Additional costs with time for LLC company formation in Malaysia are provided in the table below:
|Description of Service||Registration Cost||Time|
|Company Secretary||RM1000 – RM1200||1 year|
|Registered Virtual Address of Company (If owner have no address)||RM free (If a company is registered by us)||1 year|
|Ready Office Desk including Office rental agreement||RM500 (normal) to RM2000 (executive)||1 year|
|Sign Board and Premise license cost||RM1000 – RM1200||1 year|
|Export-Import License registration cost||RM3000 – RM4000||1 year|
|SOCSO and EPF cost||RM1200 – RM1500||1 year|
|WRT Registration Cost||RM3000 – RM4000||1 year|
|ESD Registration Cost||RM1000 – RM2000||5 years|
|VISA Application cost||RM5000 – RM6000 (Applicant) and RM2000 for each dependent||5 years|
Additionally, advisory costs of RM2000 to RM3000 (depending on the consultancy firm) may be added to the whole process during advice sessions and during every step of the company registration procedure. Some advisory firm add more costings, such as:
- Registration documents print copies
- Each board meeting resolution copy
- Each chop on a copy
- Documents receive
- Bank account open assistant
- Detail shareholders information as documents
- Special meeting or secretary resolution
- Miscellaneous expenses
It is advised that you select a reputed consultancy firm that is an expert in company registration. Additionally, you must follow all government rules and regulations. In Malaysia, you must consider both national business laws and company requirements set by the regional authorities in each state of Malaysia.
Sdb Bhd Malaysia company registration is simple if you follow some steps and rules. The benefits of a Limited Liability company in Malaysia are more than the drawbacks. With this business registration, you can do any nature of business in Malaysia. Foreign entrepreneurs and investors are allowed to register Sdn Bhd company in Malaysia.