To start a new business in Malaysia, you have to cope up with several prerequisites. It is quite handy to use 3E Accounting because it will help you to get over the line for the registration of your company in Malaysia’s complex system of business registration. Self-registration of a company is strictly prohibited for foreigners in Malaysia, but they can register a company that is 100% foreign-owned. Under the Companies Act 2016, mainly two types of companies can be allowed to register.
- Such company which is limited by shares
- A limitless company
A company limited by shares
Any company which has share capital can be incorporated as a private or public company. It can be recognized through words (Sdn.) and (Bhd.), or Sendirian Berhad, appeared before the company name. Formalities to open such a company are given below.
- Section (14CA) at least you have to add one subscriber to the company shares
- Article (122) you have to have at least one director
- A person authorized by the SSM (Company Commission of Malaysia or a member of the professional body recommended by the Ministry of national trade Cooperative and Consumerism.
Procedure for Incorporation
The first step in this procedure is the application filing for the company name search. It is done to confirm that the name which you have decided for your company is available to open a company in Malaysia or for Malaysia company registration. This step for the title searches further many levels, which are given below.
- To complete and submit the form of 13A CA (which is for the availability of name). It is provided to SSM.
- Submission of 30.00 RM fee for one name applied for Malaysia Company Registration. SSM does approval of the company name, and it had to be reserved for three months from the approval date.
Submission of incorporation documents necessary for Malaysia company registration
Documents essential for this must be submitted within a three month time period from the date of approval by SSM.
- Share transfer for the company is not allowed
- Number of members shouldn’t be more than fifty
- To invite the public for the subscription of the shares of the company is not allowed
- To invite the public to deposit money with the company is also not allowed
Form 48 A
Promoter or director had to take an oath that he/she isn’t
- A bankrupt
- Hasn’t been imprisoned and convicted for any crime
It describes that all the needs of the CA have been attached to it. A company secretary who had the powers to handle SDN BHD had to sign this form. Company registration services are named in the Articles of association and Memorandum.
Other additional documents
- The original transcript of form 13A
- A Xerox copy of the letter from the SSM in which they approve the company name
- A Xerox copy of the identity card of every company secretary and director.
Under ACT 2016, for new companies for registration of an online company or the incorporation for the company in Malaysia, 1000 RM fee is necessary to submit to SSM per application.
Once a company is registered after fulfilling all required formalities, SSM issues a warning of registration, which is also called a Certificate of Incorporation. It only gets issued after the 100% compliance with the procedure for incorporation and duel submission of complete incorporate documents.
Guidelines for foreign company registration
One can get a certification of international company by these means;
- By incorporating a local company with the Companies Commission of Malaysia
- Registering the foreign company directly with SSM
According to the Companies Act, an international company is defined as an organization, society, corporation, a company, or any other body which is based outside Malaysia. An institution or an unincorporated association working under the law of the place from which it was originated and can sue or be sued or hold any property in the name of other officers of the organization such as secretary, which is duly appointed solely for this cause and which doesn’t have its principal place of business or head office located in Malaysia.