Introduction to register a company in Malaysia

Embarking on the journey of registering a company in Malaysia involves navigating through a series of structured steps and regulatory requirements. From selecting an ideal business structure to obtaining the necessary licenses, each phase demands careful consideration. In this comprehensive guide, we delve into the intricacies of the process, shedding light on vital aspects such as company name selection, registration fees, post-registration obligations, and the subsequent operational necessities. Whether you are a local entrepreneur or a foreign investor, understanding the nuances of Malaysia’s company registration procedures is pivotal for a smooth and legally compliant business establishment.

This section will guide you on performing an SSM company search through https://ssm-einfo.my/ , completing official forms for company registration, and the submission process. The content is tailored for those intending to establish a Sole Proprietorship or Partnership business exclusively in Malaysia.

Registering a company in Malaysia is a straightforward process. Follow these steps under Suruhanjaya Syarikat Malaysia (SSM): brainstorm three company names, check name availability, complete forms “BORANG PNA 42” for Company Trade Name and “BORANG A” for Company registration. Submit both forms to SSM Head Office with your Identity Card (IC) and RM70 for registration fees and business info print-out. With these complexities in mind, follow RS 36 Solutions to delve into the intricacies of Malaysia’s accounting landscape to help you navigate this financial terrain effectively.

General Information

Register your business within thirty (30) days of commencement.
Your approved company name is reserved for 30 days, extendable for RM 50.00.
Business registration is valid for one (1) to five (5) years.
The business must comply with laws, security, public order, and morality.
Obtain the Business Registration Certificate within an hour after payment.
Unregistered business may face fines or imprisonment under ROBA 1956.
Registered businesses must acquire licenses from relevant authorities.

Why should I register my online business with SSM?

Legally registered entity
Boost customer confidence
Facilitates business information verification
Assists government support and development
Eligible for Malaysia Payment Gateways

Registering a Company Online

ezBiz account Activation by visiting SSM counter

Requirements:

Owner must be a Malaysian Citizen or Permanent Resident.
Owner must be aged 18 and above.

ezBiz account Online Activation via ezBiz website

Follow these steps:

Sign in to the ezBiz website.
Select “User Profile” and “User Verification Request.”
Click “Add New,” attach required documents, and click “Submit.”

Successful applications receive an email confirmation. Incomplete applications prompt an email for document resubmission.

Registering Your Business Offline

For offline registration, submit three company names (one approved), check name availability, and fill/submit forms PNA 42 and form A at the SSM office with identity proof.

Suruhanjaya Syarikat Malaysia (SSM)

The Companies Commission of Malaysia, known as Suruhanjaya Syarikat Malaysia or SSM in Malaysia, operates as a statutory body overseeing companies and businesses. Established on 16 April 2002, SSM resulted from the merger of the Registrar of Companies (ROC) and the Registrar of Businesses (ROB) in Malaysia.

SSM Malaysia’s primary role is to function as an agency facilitating the incorporation of companies and the registration of businesses. Additionally, it provides comprehensive company and business information to the public while ensuring the compliance of Malaysian businesses with relevant legislation.

Serving as the foremost authority in enhancing corporate governance, SSM actively enforces business registration and corporate legislation. Through diligent monitoring and enforcement, SSM contributes to fostering positive developments in the corporate and business sectors of the nation.

SSM online, accessible through ssm e-info, offers the public the opportunity to purchase financial information and profiles of all companies registered with SSM Malaysia.

For more information, visit SSM online.

Register SSM online vs offline

The process of company registration provides two options: online registration via Ezbiz Online services or manual registration at any SSM counter in Malaysia. First-time registrants are advised to visit the SSM counter for guidance from helpful officers and to inquire about the process. It is also advisable to apply for Ezbiz Online services at the counter, allowing for convenient online management of business details in the future.

The company registration process involves three key stages:

Pre-registration
Registration with SSM
Post-registration

Steps to Register a Company in Malaysia

The company registration process in Malaysia is a straightforward endeavor once you have gathered all the necessary information.

#1 Identify your ideal business structure

Begin by understanding the types of entities available for registration in Malaysia. Choose from options such as Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company (Sdn. Bhd.), and Public Limited Company (Berhad). The most common structures are Sole Proprietorship and Private Limited Company.

#2. Choosing a company name (at least three)

Opt for a trade name rather than a personal name for a more professional image. Provide at least three name suggestions on “BORANG PNA 42,” ensuring they are remarkable, easy to remember, and relevant to your business.

Business name (Personal Name)

Distinguish between a business name (legal name) and a trade name used for advertising. Specify the business name as per MyKad (e.g., Ali Bin Ahmad).

Trade name

Differentiate the trade name, used for public visibility, from the business name. Align both names to avoid confusion.

#3. Check Company Name availability

Ensure your desired name is unique by checking its availability through the Companies Commission of Malaysia (SSM) portal. Reserve the name upon confirmation, paying a nominal fee.

SSM Company Name Search Online System
Visit www.ssm-einfo.my
Click “Register” and fill in the form
Log in, select “Search” under Company & Business Information
Enter your desired name in the box “By Name”

If the name is taken, it will be listed; an empty result indicates availability.

Explore SSM Company Name Search in Malaysia (Step-by-step Guide) for a detailed guide.

MYDATA Services

Another option is MYDATA. Visit www.mydata-ssm.com.my for name availability.

#4. Complete the form “BORANG PNA 42” to register a Company Trade Name

Access the form here. Differentiate personal and trade names, ensuring adherence to business registration guidelines.

#5. Complete the form “BORANG A” to register your Company

Access the form here. Fill in details, ensuring alignment with the proposed business name.

Important notes:

Start date precedes or aligns with the registration day.
Choose a business name relevant to your products or services.

#6. Submit the two forms to SSM Head Office

Address:
Menara SSM@Sentral
No 7, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50623 Kuala Lumpur.

Operating Hours:
Monday – Friday
Service Counter: 8.15 am – 4.15 pm

SSM Contact Center:
Tel: 03-7721 4000
Fax: 03-7721 4001

SSM General Line:
Tel: 03-2299 4400
Fax: 03-2299 4411

Hotline: 03-2299 4400
E-mail: enquiry@ssm.com.my

Ensure the owner (or all partners) is present at the counter for registration.

The Requirements for Malaysia Company Registration

At least 1 director is essential for company registration.
Registration requires 1 shareholder.
The owner must be a Malaysian Citizen or Permanent Resident, aged 18 years and above.
The owner should not have been convicted or imprisoned in the last 5 years.
The owner must not be bankrupt.
Only the owner or partner is allowed to make an application.

Requirements for Company Secretary in Malaysia

Every registered company in Malaysia must have at least one secretary. A person can serve as a company secretary in the following capacities:

An individual licensed by the SSM.
A qualified ICS member.

Proceed to Level 14 in Menara SSM @ Sentral. Bring the two completed forms to the counter for a manual check to ensure all information is correctly filled in. Obtain your Registration Number. Depending on the day, it might be busy, so be patient and wait for your turn. Don’t forget to bring your identity card (IC) along.

The Documents Needed for Company Registration with SSM Include:

Copy of the identification card for every director.
Copy of Malaysia IC/Passport for Malaysia resident shareholder and director.
Copy of passport and a copy of residential address proof (e.g., recent utility bill, residential phone bill, tax bill, cable TV bill, or bank statements) for non-resident shareholder and director.
Declaration of compliance.
Declaration by a director or a promoter before appointment.

How to Start Registering Your Company in Malaysia

The registration process commences once the director and shareholder sign the registration documents and submit them to the SSM. Typically, the entire registration process takes between 5 to 10 days after document submission.

However, the timeline for the incorporation process is contingent on the accuracy of the information provided in the forms and the submission of the relevant documents.

Registration Fees

As per the new Companies Act 2016, the fee for company registration in Malaysia is RM 1000 [RM1,010 including tax] to SSM. This fee applies to each application filed by a business owner.

The fees charged by SSM for both online and offline registration procedures are as follows:

Sole proprietorship using a personal name as stated on the identity card: RM30.00
Sole proprietorship or partnership using a trade name: RM60.00
Registration of branches: RM5.00 for each branch
Business Information Print-out: RM10.00

The Business Registration Certificate can be obtained within 1 hour after payment, and the entire process typically takes 1 to 2 hours.

Obtain Registration Certificate

Upon successful registration with SSM, a certificate will be issued, serving as proof that the company is registered with SSM. However, if the documents requested in the registration application are not attached, a certificate won’t be issued.

Validity Certificate of Registration

Refer to the Registration of Business Act 1956 for information on the validity certificate of registration, which is issued using A4 paper. Access the certificate.

After Company Registration in Malaysia

Once your business is registered, and you have obtained your incorporation certificate, your enterprise becomes a legal entity, allowing you to commence operations, provided no additional licenses are required.

Here are essential steps to take after successfully registering your company:

Opening a Corporate Bank Account

For foreigners establishing a company in Malaysia, the process of opening a corporate bank account may pose more challenges compared to locals. Explore our insights on potential challenges and the account-opening process here.

a) Consider choosing from a selection of local and international banks such as:

Maybank
CIMB Bank
Public Bank Berhad
RHB Bank
Hong Leong Bank Berhad
UOB Bank
HSBC Bank

b) Documents required for corporate bank account opening include:

Section 14 – Superform (Application for registration of a company)
Section 15 – Notice of Registration (Certificate issued by SSM)
Section 17 – Certificate of Incorporation
Section 46 – Particulars of registered address
Section 58 – Particulars of directors
Section 58 & 236 (2) – Appointment of the first company secretary
Section 78 – Particulars of shareholders and shares
NRIC/ Passport
Business Plan
Proof of residential address
Tenancy agreement of business address (if any)

Applying for Business Licenses (if needed)

Business licenses in Malaysia fall into three categories:

General licenses from local town councils
Industry or sector-specific licenses from government ministries
Activity-specific licenses

Fulfilling Your Tax Obligations & Annual Business Reporting Compliance

Every company in Malaysia must pay corporate taxes and comply with regulations outlined in the Company Act 2016. The corporate tax rate is 24%, and taxes must be filed annually, unless exempted. Determine your company’s eligibility for tax exemptions or incentives.

Hiring Local or Foreign Employees

Hiring employees in Malaysia requires employers to register with the Employee Provident Fund (EPF) within 7 days before the employee’s start date. Documents required for EPF registration for private sector employers include:

Form KWSP 1
Form 49
SSM Company Incorporation Certificate
Director’s identification card

Conclusion

In conclusion, the process of registering a company in Malaysia is a pivotal undertaking, marking the inception of a legal entity poised for business endeavors. The completion of formalities, from selecting an apt business structure to fulfilling post-registration obligations, sets the foundation for a robust and compliant operation. Opening a corporate bank account, acquiring necessary licenses, meeting tax obligations, and hiring employees are integral steps in fortifying the business’s standing within the Malaysian regulatory framework. By navigating these intricacies with diligence and adherence to legal norms, entrepreneurs can ensure a seamless incorporation and lay the groundwork for a successful venture in the vibrant Malaysian business landscape.