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

Bismillahir Rahmanir Rahim

Here, entrepreneurs can find latest information about online New Sdn Bhd company registration in Malaysia with steps, process & fees. It is required four to five working days to register the company in Malaysia whereas shareholders can register it from overseas. Cost of registering Sdn Bhd companies are starting from Ringgit 2500 to RM three thousand one hundred, Call us: +601151177141

Let share with us about business nature to update the business registration fees and process, properly. Sdn Bhd company is the best choice of registering a business in Malaysia for non-residents. Limited liability company in Malaysia is called Sdn Bhd company (Sendirian Berhad company) as local language.

1. Cost means incorporation fee in detail;
2. Sdn Bhd means Sendirian Berhad;
3. Company Secretary means license secretary who is authorised by law to register Sdn Bhd company through SSM;
4. Cost means other charges apart from companies incorporation;
5. Paid up mean equity share;
6. SSM means Suruhanjaya Syarikat Malaysia (Malay language), ROC in other country;
7. Business license means export, import, WRT, Halal and Signboard in Malaysia;
8. KL means Kuala Lumpur
9. COSEC means Company Secretary in a short format;
10. Shareholder can be director by law when business is established;

7 steps of business registration in Malaysia for foreigners

Step 1: Company secretary or expert who can guide of business registration process in Malaysia. But, it’s only company Secretary by law is eligible to register a company as SSM guidelines.

Step 2: Company secretary will prepare Forms to sign by the shareholder (s) and shareholders must fill up a form declare of non bankruptcy in own country.

Step 3: It is proposed 3 business names to submit for checking availability in name search of SSM . Name registration of a company takes time as many company’s are registered in a month.

Step 4: Share the information of business nature, paid up capital, address, contact and email to go for next step of company formation. Remember, in one company, maximum 3 business natures are allowed to add.

Step 5: Now, the COSEC will submit the form to SSM and make an online payment for name reservation. The approved name is valid for 30 days and after then automatically invalid unless extension.

Step 6: As foreign shareholder must speak with bank officer to know the requirements of opening business account. Advisor or consultant can guide to make it easy and successful of bank account.

Step 7: Receiving company’s incorporation certificate secretary will certify as required by bank. More information of fees to register a Sdn Bhd company will be shared in the end of this article.

Types of company registration Malaysia

Do you know only Sdn Bhd company is suitable format for foreign ownership businesses? Foreigners cannot open sole proprietorship company by law as it’s only for local Malaysian.

1. Sole Proprietorship 
2. Partnership 
3. Sendirian Berhad (Sdn Bhd) in Malay, Private Limited Company in English.
4. Company Limited by Guarantee (CLG) 
5. Sendirian (Sdn) is called unlimited Company 
6. Berhad (Bhd) / Public Limited Company 
7. Foreign Company 
8. Perkongsian Liabiliti Terhad (PLT) / Limited Liability Partnership (LLP) 

How to open a sole proprietorship company?

Only local IC holder is eligible to open sole proprietorship company through SSM process and under business Act of 1956. Enterprise business has lesser responsibilities than Sdn Bhd.

Low income tax, no annual return filing to SSM on time and easy to form and wind up. Business registration fee is RM 30 (thirty) only as ROC and SSM website information. To appoint a company secretary for proprietorship company is exempted.

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 partnership business?

I would love to share important information that 2-20 partners can collectively register partnership business in Malaysia. There is neither share capital or duty of appoint a company secretary. Process of registering a partnership business in Malaysia is almost same as sole proprietorship. Visit: ezbiz Malaysia

A proposed name must select to check in the counter of SSM. Fill up a form given by SSM office and pay for registration, name reservation in total amount of RM 65. Partnership companies incorporation in Malaysia is more easier for local citizen. IC card, address, name of a business and fee information are necessary to know how to register a company. Advantages are:

1. No need company secretary to appoint
2. No need audit report as yearly basis
3. Hassle free tax filing
4. Quick wing up process

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

A new company is registered as publicly and liability is borne by the members. 2 types of CLG company is formed 1) Without Berhad (Bhd) and 2) With Berhad (Bhd). The objectives of the business to form CLG is recreation or promotion of goods. One person might appoint as a director if officer of SSM think as a fit for. Do you know how to register a company and what are the documents required for limited company in Malaysia?.

Basic requirements to registrar limited guarantee company (CLG) are address, name of business, objectives and power of the members. CLG is formed under the Companies Act 2016.

Sendirian (Sdn) Unlimited Company Registration Process 

The company shall have the followings:

The character of an unlimited company is:

• A minimum 3-4 business partners.
• Proper name
• Registered address plus
• IC of the directors for identification. Setting up unlimited company is as like same of limited by guarantee. Documents are verified by the officers of SSM.

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

Requirement of registered public limited company in Malaysia is minimum 2 shareholders and one promoters must be local residence. PLC is established under company act 2016.

1. Name of the companies registration
2. Address
3. Contact detail information as like process of Sdn Bhd company formation.

Way of LLP Incorporation in Malaysia

LLP, Limited liability partnership business is incorporated under company act 2016. Fee of LLP registration is RM 500. According to legal terms the corporate, law firm, accounting firm, joint venture companies are setting up by LLP format. To open LLP there must be 2 partners or corporates and they the company can make profit. Requirement of LLP company formation are:

1. A registered address
2. IC of the partners
3. Organisation’s name registration from SSM officers
4. Business nature
5. Approval letter copy from professional if any special. This is all about process of LLP formation in Malaysia for the local entrepreneurs.

Let discuss on Sdn Bhd company as foreigners are only one option to register this company.

Online Sdn Bhd Company Registration Guideline A-Z

Malaysian company registration steps are as follows: 

1. Online new registration of account on MyCoID portal (Process by company secretary)  
2. Activating account at SSM counter 
3. Login credentials received through email after account activation on MyCoID portal 
4. Name of the company search on the Direct Incorporation Application on MyCoID portal homepage 
5. Under Name Search for other information 
6. Form 13 A is called a company name 
7. Selection of Business code and description 
8. Information of shareholders and directors, form 48a
9. Submission of application 
10. Make a payment of RM 1060 for incorporation and name registration and get a receipt from SSM;
11. Notice of company’s incorporation in Malaysia.

SSM registration Forms

CS (COSEC) to perform duties must prepare some forms submit them online to SSM. Log in MyCOID to process documents:-

1. Company’s name registration copy
2. BORANG PNA 42 to register a business name in Malaysia.
3. BORANG A is a separate required form of incorporation.

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

Documents Required for Sdn Bhd Company Registration

Foreigners must have choice to register Sdn Bhd company as no other option open for them. Opening a company, there must have some require documents to follow up for the foreign nations:

1. Age of the shareholder shall be minimum 18 years
2. No record of bankruptcy in home country
3. Residence address in Malaysia
4. Pay the equity share capital amount in Bank
5. Company must be a business address
6. There are some requirement from banks as well. A board meeting resolution copy attested from Company Secretary.
7. To open a company in Malaysia must be minimum 1 shareholder who is by law hold position of director.
8. The maximum number of shareholders are fifty (50)
9. As there is no more authorised capital system in Malaysia. Minimum and maximum value of share capital is Ringgit 1 to 1 million for limited company.
10. Directors can not show capital RM 100K, 300K, 500K or 1 million at the time of opening a new company. The main reason is as there is no point of evidence copy of investment. A reasonable share capital (RM 3000-4000) is perfect to show at the time of registering a company.
11. As law of Malaysian, foreigners can own 100 percent shares of the company.

Certificate of Registration for Sdn Bhd company

After the completion of the process mentioned above, director receive business registration certificate. New Sdn Bhd Company registration certificate in Malaysia is issued by the SSM through email. Incorporation certificate and other forms provided by SSM are compulsory to start business in Malaysia: 

1. As Companies Act, Section 17 (seventeen) is called Incorporation of a company. You can find detail of incorporate companies in Malaysia detail at link.
2. Section fifty eight is called Particular of company secretary and lodgement.
3. Section fourteen (Super form that describes about particular of the directors and members, lodgement, particular of the company and company secretary)  

Note: Purchase other forms from SSM my data if require

Company setup estimated fees

Registering my business in Malaysia as promoters discuss with consultant for SSM fees . Amount of company setup fee in Malaysia depend on service and offer by the consultancy firm. Let see, how much fee is there to incorporate a company?

Post registration and yearly cost

Investors are worried for yearly cost after incorporate a registered business. Let see, what to do every year as a director:

SSM cost

As guideline of SSM in Malaysia, any Sdn Bhd company must submit annual return within calendar year. To refresh in mind, return filing to SSM is not same as income tax filing in Malaysia. Yearly of cost is RM 150 to above as government fee is not enough.

Consultancy firm add more costs to provide services for whole of the year to the companies (clients). Secretary fee is added Ringgit 600-1200, depend of firm. Please keep in mind, this is all about yearly business registration fee in Malaysia.

Financial statement/ Bookkeeping/ Accounting fees

Any limited (Sdn Bhd) corporations must prepare FS (financial statement) to ignore financial penalty. Accounting, bookkeeping fees are not fixed as it depend on accounting firm and number of transactions. it is charged RM 800-RM 1000 for dormant company.

If the director have own house chartered accountant in own country who is updated about Malaysian accounting system is fine.

Audit service fee

Chartered accountant of firm in Malaysia must sign on the FS adding an audit report page. The auditor shall look into all transactions and supporting papers of expenses and income as the procedure. Without audit copy income tax filing is impossible (T & C apply). As practise in Malaysia, audit service fee for the dormant company is imposed Ringgit 1000 to 1200. For active company, audit fee is RM 2000 to RM 5000 or above.

Income tax filing

Tax agent can proceed to submit company tax filing by the audit copy. There is some forms are given to the director for signing to submit in LHDN (tax department). Tax service fee is RM 800 to RM 1500. Usually, corporate income tax rate is 17 percent in Malaysia.

Responsibility of a dormant company

This is stupidity if the director carry wrong information that you will not submit filing as there is no business in the whole year. Director of the companies be aware about annual responsibilities to follow:

• Annual Return submit to SSM
• Accounting and audit
• Income tax filing
• Wing up or strike off (if require)

What may happen if unfollow above instructions? Well, you will receive a gift voucher amounting RM 5000 from SSM. There is a gift box from LHDN (tax department) is given those company do not submit taxation on time. And the penalty amount RM 5000 to RM 50000. They have to pay for it in future if the entrepreneurs of a company ignore to submit return.

Barrier of bank account open

Do you think bank account open is easier in Malaysia? Local banks never welcome foreign shareholding companies to open account. Which banks are available for the non-resident shareholding company?

1. OCBC
2. HSBC
3. Standard Chartered Bank
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