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Incorporation In Malaysia

In Malaysia, incorporating a company involves registering a private limited company (Sdn Bhd) with the Companies Commission of Malaysia (SSM). Essential requirements include at least one resident director, one shareholder, a local registered office, and a minimum paid-up capital of MYR 1.

Incorporation In Malaysia

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Why Should I Use Auriga Accounting For Incorporation In Malaysia

Auriga Accounting has a team of registration experts who can provide complete guidance to register your Incorporation In Malaysia.

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Our team of experts will get in touch with you and collect all necessary documents and details

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Why Should I Use Auriga Accounting For Incorporation In Hong Kong?

Auriga Accounting has a team of registration experts who can provide complete guidance to register your Incorporation In Hong Kong .

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Overview -Incorporation In Malaysia

Incorporating a company in Malaysia involves registering a private limited company, known locally as Sdn Bhd, through the Companies Commission of Malaysia (SSM). This form of business entity is popular among both local and foreign investors due to its limited liability protection, credibility, and ease of operation. The incorporation process requires compliance with several statutory requirements, including appointing at least one resident director and having at least one shareholder, who can be an individual or a corporate entity. Additionally, a registered office address in Malaysia is mandatory for the company’s official correspondence.

One of the key advantages of registering a company in Malaysia is the minimal paid-up capital requirement, which is currently set at MYR 1, making it accessible for startups and small businesses. The process is relatively straightforward, typically completed within a few days once all documentation is submitted and approved. Upon registration, the company is required to obtain necessary licenses and tax registrations, such as the BizFile registration and tax identification number from the Inland Revenue Board (LHDN).

Eligible for Incorporation In Malaysia

Minimum Number of Directors and Shareholders: A Malaysian company requires at least one resident individual director and a minimum of one shareholder, who can be an individual or a corporate entity of any nationality, including foreigners.

Company Name and Business Purpose: The chosen company name must be unique and approved by authorities, ensuring it does not resemble existing names. The business activities listed during registration should comply with Malaysian law.

Registered Office: A physical address in Malaysia is mandatory for the company’s registered office, where official correspondence will be sent.

Paid-up Capital: The minimum paid-up capital is MYR 1, although certain industries may impose specific requirements.

Legal Capacity and Good Standing: Applicants must have the legal capacity to contract and should not be disqualified under Malaysian law, such as being an undischarged bankrupt or having criminal convictions.

Advantages In Incorporation In Malaysia

  1. Limited Liability: Shareholders’ liability is limited to their share capital, protecting personal assets from business debts.

  2. Access to a Growing Market: Malaysia offers a strategic location in Southeast Asia, providing access to regional markets and trade opportunities.

  3. Favorable Tax Environment: Competitive corporate tax rates, tax incentives, and exemptions are available for certain industries and activities.

  4. Ease of Business Registration: The registration process is straightforward and efficient through the Companies Commission of Malaysia (SSM).

  5. Foreign Ownership Flexibility: Foreigners can own and operate companies in many sectors without the need for a local partner, depending on the industry.

  6. Skilled Workforce: Malaysia has a diverse, multilingual, and skilled labor pool suitable for various industries.

  7. Legal and Regulatory Framework: The Malaysian legal system is transparent, with laws aligned with international standards, providing legal certainty.

  8. Strategic Location and Connectivity: Malaysia’s proximity to major Asian markets and well-developed infrastructure facilitate trade and logistics.

  9. Repatriation of Profits: Companies can freely repatriate profits, dividends, and capital, subject to compliance with local regulations.

  10. Government Support and Incentives: Various government agencies offer grants, tax incentives, and support programs to promote business growth.

Documents Required for Incorporation In Malaysia

  • Form 24: Details of directors’ shareholdings and share capital.
  • Form 49: Personal details of directors, secretary, and shareholders.
  • Constitution of the Company: Memorandum and Articles of Association (or Constitution) outlining company rules and objectives.
  • Incorporation Application (Form 13A): Application for name reservation and registration.
  • Proposed Company Name: Name reservation approved by SSM.
  • Declaration of Compliance: Statutory statement confirming adherence to legal requirements.
  • Identification Documents:
    • For individuals: NRIC or passport copies.
    • For corporate shareholders: Certificate of Incorporation and relevant docs.
  • Registered Office Address: Proof such as utility bills or lease agreements.
  • Consent Letters: Signed declarations from proposed directors and secretary.
  • Registration Payment: Proof of fee payment.

Online Process for Incorporation In Malaysia

  1. Create an Account on SSM e-Services: Register for an account on the Companies Commission of Malaysia (SSM) online portal.

  2. Name Reservation:

    • Log in to the SSM portal.
    • Submit a name reservation application for your company.
    • Pay the reservation fee online.
    • Await approval (usually within a few hours to 1-2 days).
  3. Prepare Required Documents:

    • Gather all necessary documents (as listed previously).
    • Convert documents to PDF format for uploading.
  4. Complete Incorporation Application:

    • Fill out the online registration form via SSM’s BizTrust or MyCoID 2016 system.
    • Upload all supporting documents.
    • Pay the registration fee online.
  5. Verification and Approval:

    • SSM reviews your application and documents.
    • If everything is in order, approval is provided usually within a few hours to a few days.
  6. Receive Incorporation Certificate:

    • Once approved, the system issues the Certificate of Incorporation electronically.
    • Download and save the official document.
  7. Post-Incorporation Steps:

    • Register for taxes (e.g., GST, if applicable).
    • Obtain necessary licenses depending on your business activity.

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