Sdn Bhd Company Registration in Malaysia- How To Register A Company?

Bismillahir Rahmanir Rahim

Entrepreneurs worldwide can get current information about the steps, processes, and fees regarding the online registration of Sdn Bhd company in Malaysia. It takes 4 to 5 working days to register a company in Malaysia. Shareholders can register a company from anywhere in the world. The registration cost starts from 2500 to 3100 Ringgits. Call us: +601151177141

let us update you about the nature of the Business, the registration fees and the processes involved in registering a company. It will not be wrong to say that Sdn Bhd company is one the best choices for foreigners to register a new business company in Malaysia. In the local language, a Limited Liability Company is referred to as Sdn Bhd company, also known as Sendirian Berhad company  (Sendirian Berhad company).

1. Cost is regarded as an incorporation fee ;
2. Sdn Bhd is an abbreviation used for Sendirian Berhad ;
3. Company Secretary is referred to as the license secretary. A licensed secretary is a person authorised by the law to register an Sdn Bhd company through SSM ;
4. Cost refers to the charges other than companies incorporation fee ;
5. Paid up means impartial share ;
6. SSM is an abbreviation used for Suruhanjaya Syarikat Malaysia (Malay language). In other countries, it is called ROC;
7. Business license it is referred to the export, import, WRT, Halal and Signboard in Malaysia ;
8. KL is an abbreviation used for Kuala Lumpur;
9. COSEC stands for Company Secretary in a precise format ;
10. The same shareholder can be the director by law when business is registered by SSM;

7 steps of business registration in Malaysia for foreigners

Step 1: A person who is an expert or a company secretary by law can register a company under the SSM guidelines.

Step 2: The company secretary is required to create a form for the shareholders of the Company to get that form signed for Non-bankruptcy from the respective countries.

Step 3: It is one of the important to choice three proposed names of the business, check here name search of SSM .The registration of the Company’s name is a hectic process as many other companies are registered in a month.

Step 4: The businessman is required to share the relevant information about the nature of their email, contact number, to enhance further the chances of establishing their Company. Note; only three business natures are allowed in one Company.

Step 5: The next step is for the COSEC to make an online payment for the reservation and confirmation of the Company’s name and submit the form to SSM. The validity of the approved Company’s name will last for 30 days unless it gets an extension. 

Step 6: The overseas shareholders are required to contact the concerned bank officer or SFM CONSULTING FIRM SDN BHD to learn about the requirements of opening a fresh business account. The advisor or consultant can help to make it easier to create a bank account.

Step 7: The secretary of the Company will certify the Company’s incorporation certificate as it is the bank’s requirement. Further details of the registration fees of Sdn Bhd company will be discussed in this article.

Different Types of Company’s registration in Malaysia

Sdn Bhd Company in Malaysia is the only company that is suitable for foreign-owned businesses. Overseas business people cannot get sole ownership of a company by law. It is only allowed for the local people in Malaysia.

1. Single ownership 
2. Business on share 
3. In Malay, it is called Sendirian Berhad company whereas in the English language it is known as Private Limited Company.
4. CLG Stands for Company Limited by Guarantee. 
5. Sendirian (Sdn) is also known as an unlimited Company. 
6. Berhad (Bhd) or Public Limited Company 
7. Foreign Company 
8. Perkongsian Liabiliti Terhad (PLT) or, Limited Liability Partnership (LLP) 

How to open a sole proprietorship company?

The ownership of a sole proprietorship is only allowed to the local IC holder through the process of SSM and under the business Act of 1956. Sdn Bhd business has much more bigger responsibilities than enterprise business.

It is due to various reasons such as Low income tax, there is no requirement for annual filing return to SSM on due time, it is much easier to create and finish. The registration fee for business only 30 RM as per the information given on ROC and SSM websites. Lastly, appointing a secretary for Company is excluded. 

Proprietorship company formations steps are 1) Fill up a form and submit to the counter of SSM to verify by officer. 2) SSM officer will check the name availability 3) Make a payment of online new registered Company’s purpose RM 60, Name purpose RM 30 and branch RM 5 only. 4) Applicant need to wait for 1-2 hours to receive business registration certificate after making payment. 

How to register a business on partnership?

In Malaysia, more than 2 to 20 people can register a business on partnership. There is no need to appoint a secretary for the Company nor there is a share capital. The registration process for a partnership business is exactly the same as it is for sole proprietorship, visit: ezbiz Malaysia

It is necessary to check the proposed name in the search counter of SSM. The next step is to fill up the form provided by the SSM office and pay the required registration fee. The reservation fees for the Company’s name us RM 65. Companies on partnerships are much easier to get and run for local people in Malaysia. Some of the things that are important to register a company are, name and address of the Company, IC card and fee information.

Some of the benefits are:

1. There is no requirement of a company secretary.
2. 2. There is no requirement of an annual audit report. 
3. 3. Tax filing is free from the hustle
4. 4. Quick process to start your venture

How to register a company limited by guarantee (CLG)?

When a new company is registered and it is publicly announced, the liability of that Company is spread by the employees working in that Company. There are two different types of CLG companies, 1) With Berhad (Bhd) and 2) without Berhad (Bhd). The first and the foremost objective of the business CLG is to promote and recreation. A suitable candidate may be appointed as a director of the Company on the demand of SSM officer. Do you the what processes are involved in registering a company and what documents are necessary for the registration of a Limited company in Malaysia? .

Some of the key requirements for the registrar limited guarantee company ((CLG) are; the name and address of the Company, main goals and objectives of the Company, and authority of the employees. CLG is established under the Companies Act 2016.

Registration Process of Sendirian (Sdn) Unlimited Company 

The Company is required to have the following things:

The first and the foremost important thing for a company to have minimum 3 to 4 business partners.

• It must have a proper name.
• It must have a registered address.
• It must have IC of all the directors for the proper identification. 
• Establishing an unlimited company is exactly the same as limited by guarantee company. 
• The documents must be verified by SSM officers.

How to establish a Berhad (Bhd) Public Limited Company?

To register a public limited company in Malaysia, one must have minimum of 2 partners and at least one local sponsor to promote the Company. PLC is formed under company act 2016.

The following things are important:

1. A registered name of the Company is required.

2. A proper addrss of the Company is needed. 

3. The details and information of contact is exactly the same as Sdn Bhd company formation.

Ways of LLP Incorporation in Malaysia

The LLP, also known as Limited liability partnership business is established under company act 2016. The registration fee for LLP is RM 500. As per the legal terms and conditions the corporate, accounting firm, law firm and joint venture companies are built up under the format followed by LLP. To register LLP, one must have at least 2 partners. 

Some of the requirements for the formation of LLP company are:

1. It must have a registered address.
2. It must have the IC of all the partners for the proper identification.
3. It must have an authorized and registered Organization’s name from SSM officer
4. The nature of the business be shared and discussed.
5. A cope of approval letter from a professional should be provided. This is the process of LLP formation local Malaysian’s businessmen. 

Now, it is the time to discuss Sdn Bhd company. Only foreigners are eligible to register Sdn Bhd company.

An Online Guideline A-Z For registration of Sdn Bhd Company 

The following are some of the steps to register a company in Malaysia: 

1. An online registration for new account on MyCoID portal (Process by company secretary)  
2. Account activation must be at SSM counter. 
3. After the online registration of the account, the login credentials will be sent on email after activation of account on MyCoID portal. 
4. Name of the Company can be searched directly on incorporation application at the homepage of MyCoID portal MyCoID portal homepage 
5. Other information can be searched under Company’s name.
6. Form 13 A is Company’s name. 
7. Selection of Business code and description 
8. Information of shareholders and directors, form 48a
9. The application must be submitted; 
10. Pay 1060 RM for name’s registration and incorporation and receive a receipt from SSM.
11. Company’s notice of incorporation in Malaysia.

SSM registration Forms

The CS (COSEC) must prepare forms and make online submissions to SSM to perform the duty. For the documents process log in in MyCOID

The following are some of the important points:

1. The name of the copy and its registration copy. 

2. BORANG PNA 42 is a platform for the registration of a business name in Malaysia.

3. BORANG A is a form needed for the incorporation. · For further incorporation there are two forms namely;

• Company Registration Form 1
• Registration Form (2) for new company incorporation

Required Documents for Sdn Bhd Company Setup

The only option for foreigners to register a company is Sdn Bhd company in Malaysia. However, for foreigners to open a new company they must full fill the documentation process which is discussed below:

1. The minimum age requirement for a shareholder is up to 18 years. 
2. They must have a clear record of bankruptcy in their own country.
3. They must share their Residential address in Malaysia.
4. They will have to pay the equity share capital amount in the Bank.
5. Their Company must be located a business address.
6. Banks are also required to provide some information an attested copy of board meeting resolution from secretary of the company
7. To run a company it is important to have one director by law in Malaysia, click to know opening a business information;
8. A company can have maximum 50 fifty shareholders;
9. Directors are not allowed to show capital RM 100K, 300K, 500K or 1 million during the beginning of a new company. The main reason behind it is that there is evidence of such big amount of investment. A suitable share capital is RM 3000-4000 as it is a reasonable amount to show at the time of Company’s registration;
10. As per Malaysian law, foreigners can own 100 percent shares of the company.

Certificate of Registration for Sdn Bhd company

Once the above mentioned process is completed, the director of the Company receives a business registration certificate. The SSM shares a fresh and brand new Sdn Bhd Company registration certificate through email. The certificate and other forms given by SSM are mandatory to start a new business in Malaysia start business in Malaysia: 

1. The incorporation of a company comes under the companies Act, section 17. The details about incorporate companies can be found in in a Malaysian detail link.  
2. Specific company secretary and lodgement comes under section 58. 
3. Particular forms, company secretary, directors and employees come under section 14.

Note: You can purchase other important forms from SSM if required.

Company setup estimated fees

For the registration of a business in Malaysia as a promoter, you are required to discuss it with a consultant for SSM fees. In Malaysia, the overall cost of the Company’s setup and its fee highly depend on offers and services provided by the consultant. The following shows the fee required to incorporate a company.

Post registration and yearly cost

The investors are scared of annual cost after opening a registered business. Let us find out what is needed to be done every year as a director of the company

:

SSM cost

As per the SSM guideline in Malaysia every Sdn Bhd company is required to submit yearly return within due time. Keep in mind that in Malaysia return filing to SSM is different from income tax filling. The annual cost ranges from 150 or more as government fee is insufficient. 

Consultancy companies services are more expensive for the entire year to the companies or clients. Moreover, the Company’s secretary fee ranges from Ringgit 600 to 1200 based on the nature of the firm. Note that it is all about the yearly business registration fee in Malaysia

Financial statement/ Bookkeeping/ Accounting fees

To avoid financial penalty, the limited (Sdn Bhd) companies should make FS (financial statement). The fees for accounting and book keeping is not fixed. It depends on the accounting companies and the number of transactions. It charges from RM 800 to 1000 for dormant company. 

If the director has his own house and is chartered accountant in his own county who knows about the Malaysian accounting system will be preferable.

Audit service fee

In Malaysia, the chartered accountant of a company is required to sign the FS and attaching an audit report page. The auditor job is to keep an eye on all the transactions and supporting documents of income as well as expenses as part of the procedure. The income tax filing is almost impossible without the audit copy of income tax (T & C apply).

As per the practice in Malaysia, the fee for audit service for dormant Company is imposed ranging from Ringgit 1000 to 1200. The fee range for an active company starts from RM 2000 to 5000 or more.

Income tax filing

The tax agent is required to submit Company’s tax filling with the help of audit copy.  There are certain forms provided to the director of the Company to sign and submit it in LHDN (tax department). The fee for tax service starts from RM 800 to RM 1500. Usually, corporate income tax rate is 17 percent in Malaysia.

Responsibilities of a dormant company

This is highly irresponsible if a director of a company conveys wrong or false information about not submitting file as no business is done in the entire year. The Company’s director must know about the following annual responsibilities:

• Annual Return must be submitted to SSM
• Should be aware of the accounting and audit report.
• Should be aware of the income tax filing
• Should know when to wing up or strike off (if require)

What will happen if you did not follow the above mentioned instructions? Well, SSM will give you a gift voucher of RM 5000. Furthermore, there is another gift box from a tax department known as LHDN. It is for those companies who do not submit taxation on due time. The penalty amount ranges from RM 5000 to RM 50000. In future, they will pay for it if the employees of a company avoid to submit the return.

Barriers in opening bank account

Is it easy to open a bank account in Malaysia? Well, the local banks in Malaysia do not entertain foreign shareholders or shareholding companies to open a bank account. However, the following are some of the banks available for the non-resident shareholding companies to open a bank account.  

1. OCBC
2. HSBC
3. Standard Chartered Bank (SCB)
4. UOB

All foreign banks allow foreign shareholding companies to open bank account in Malaysia under terms and conditions. One of major condition is initial deposit amounting RM 30K to RM 50K. Initial deposit amount is withdraw-able by Cheque or online transfer. Foreign shareholding companies can visit foreign banks to open business account.

Joint Venture company formation process

Actually, it is the same process of Sdn Bhd company formation where one partner or company might be local or foreigner. Shareholding, paid up capital and all requirements are same.

IC for local and Passport for non-residence information must put in MoA and super form . The share allotment of the company split as discussion in board meeting of the company.

Any person or an entity is eligible to purchase shares of a Joint Venture (JV) formation as general process in Malaysia. If any local director in a company is not called JV formation as local is silent partner holding zero shares.

WRT license is applicable for all kinds of wholesale and retail entities in Malaysia. Exemption of WRT license is shareholders of the company are local. RM 1 million investment is a condition of WRT application.

Labuan Company Incorporation Malaysia

Labuan company is registered under Labuan company act 1990 and applicants must appoint Labuan trust company to complete the registration process. Business name registration fee is RM 50 only.

To complete limited company incorporation process takes 36 hours at maximum. Fees of Labuan registrar of business are as below:

1. Sdn Bhd company’s name registration fee is RM 50
2. Paid up capital (RM 50K or below) RM 1000
3. As guideline of a foreign shareholding company, shareholder must bank in Ringgit. Which is meant between Ringgit fifty thousand < 1 million RM 2 thousand in favour of paid up capital is the equity investment.
4. Formation of a foreign company directly RM 6000
5. Annual fee RM 2600 for Labuan company
6. Foreign ownership Labuan company registration fee is RM 5300

Conclusion of a company’s registration guideline

Foreign investors are requested to contact us over WhatsApp or email for a free business consultancy. Representative of S & F Consulting Firm will guide to complete Malaysian company’s registration process within timeframe. Never hesitate to speak with us from overseas regarding formation of companies service, bank account opening, business licensing and work permit application.

S & F Consulting Firm Limited is a parent company and the local company name is SFM CONSULTING FIRM SDN BHD. There is no secret costs and services in our package as shown information in the website.

Address of S & F Consulting Firm Limited :

A-03-13 Tropicana Avenue, No 12 Persiaran Tropicana, Petaling Jaya, Selangor, Malaysia, 47410