You are required to register your business with the Companies Commission of Malaysia (CCM) under the Companies Act 1965 and the Registration of Businesses Act 1956. There are three forms of business: Sole proprietorship, partnership and limited company.
Types of Company formation in Malaysia
• Businesses that can be registered under the Registration of Businesses Act 1956 at the Commission of Companies Malaysia are:
i. Sole proprietorship – a business wholly owned by a single owner
ii. Partnership – business owned by two persons and not more than 20 partners.
• Limited Companies are incorporated under the Companies
Act 1965, enforced by the Commission of Companies Malaysia.
General Guidelines for Business Registration
a. Citizens and permanent residents of Malaysia aged 18 and above may register a business.
b. Register the business within 30 days from the date of commencement of the business.
c. The nature of the registered business should not contravene any laws.
d. Submit a copy of permit, license, letter of approval or supporting letter when registering a business that requires special consent or approval.
e. Submit application for registration personally to the nearest office of the Companies Commission or send by post.
f. Attach the following documents:
• Photocopy of Identity Card
• Photocopy of Partnership Agreement (if any)
• Permit, Licence, Letter Approval or Supporting Letter from another agency (if any)
Where to start
Decide on an appropriate name for the company, fill up and submit Form 13A (Request for Availability of Name) to SSM. There’s a charge of RM30 for each name applied. If the name is available, it will be approved within one working day. Present your payment receipt to collect the results of the name search.2. Submit your incorporation documents to SSM within three months from the approval of the company’s name. The documents required are:
• Memorandum and Articles of Association
• Form 48A – Statutory declaration by a person before appointment as a director, or by a promoter before incorporation of a corporation
• Form 6 – Declaration of Compliance, signed by the company secretary, which states that all the requirements of the Company’s Act have been complied with
• Additional documents such as original Form 13A, a copy of the letter from SSM approving the company’s name, and a copy of the identity card of each director and company secretary
Requirements for setting up a company in Malaysia
A company that has a share capital may be incorporated as a private or public company. The requirements are as follows:
• Minimum of two subscribers to the company’s shares
• Minimum of two directors
• A company secretary who is member of a professional body prescribed by the Minister of Domestic Trade and Consumer Affairs or licensed by SSM
• Both directors and company secretary must have their principal place of residence in Malaysia
• For the incorporation of a private company, the Articles of Association must contain the following:
– Restriction on the right to transfer the company’s shares
– Limitation on the number of members to 50
– Prohibition on subscription of shares/debentures by the public
– Prohibition on the deposit of money with the company by the public
Each application for the incorporation of a company shall be accompanied with payment as per the schedule below:
|AUTHORISED SHARE CAPITAL
|0 – 100,000||1,000|
|100,001 – 500,000||3,000|
|500,001 – 1 Million||5,000|
|1,000,001 – 5 Million||8,000|
|5,000,001 – 10 Million||10,000|
|10,000,001 – 25 Million||20,000|
|25,000,001 – 50 Million||40,000|
|50,000,001 – 100 Million||50,000|
|100,000,001 and above||70,000|
Welcome to the World of Business
Once the paperwork is done, you can now focus your full attention on growing your business. If you’re starting out small with a sole proprietorship or partnership, you can choose to convert it to a limited company later, subject to certain conditions. All the best in your business!