Registering a company in Malaysia can unlock a world of business opportunities in this vibrant Southeast Asian economy. The process is straightforward and involves choosing a unique company name, drafting a constitution, preparing registration documents, and paying the necessary fees.
Malaysia offers several types of business entities, catering to diverse business needs. From sole proprietorships to private limited companies, you can choose the structure that best suits your needs. Familiarizing yourself with the registration process and requirements can help you navigate this journey smoothly. Stay tuned for a detailed guide on how to register a company in Malaysia.
Company registration in Malaysia
How to register a company in Malaysia?
If you’re planing to establish a business, please follow this guide on how to register a company in Malaysia:
- Business Name Approval: The first step is to select a unique name for your company. The name should not violate any existing trademarks or copyrights. Submit the name to the Companies Commission of Malaysia (SSM) for approval.
- Preparing Company Registration Documents: Once the company name is approved, you need to prepare the following documents:
- Memorandum and Articles of Association: These documents provide the company’s internal regulations and operating methods.
- Form 48F: This form is the statutory declaration by a director or promoter before appointment.
- Form 6: This form is the declaration of compliance with the requirements of the Malaysia Companies Act.
- Identity proofs of the proposed directors and company secretary.
- Registration with the Companies Commission of Malaysia (SSM): Submit all the prepared documents along with the prescribed fee to the SSM. After reviewing the documents, the SSM will issue a certificate of incorporation.
- Register for Income Tax: Upon receiving the certificate of incorporation, register your company with the Inland Revenue Board of Malaysia (LHDN) for income tax.
- Register for Goods and Services Tax (GST): If applicable, you will need to register your company for GST with the Royal Malaysian Customs Department.
- Register for Employees Provident Fund (EPF): Register your company with the Employees Provident Fund (EPF) which is a social security institution formed according to the Laws of Malaysia, Employees Provident Fund Act 1991.
- Register for Social Security Organization (SOCSO): Also, register your company with the Social Security Organization (SOCSO) which provides social security protection to employees and their dependents.
- Business Licenses: Depending on the nature of your business, you may need to obtain additional licenses or permits before you can start operating.
- Open a company bank account: Once all the registrations are done, the last step is to open a corporate bank account in Malaysia.
Remember, the process can be complicated without proper guidance. Therefore, it is advisable to hire a professional service or a company secretary to assist you with the registration process.
How much does it cost to register a company in Malaysia?
The cost of registering a company in Malaysia can vary depending on the type of company and the services you require. The cost can range from RM1,000 to RM5,000 (approximately $240 to $1,200 USD) for a private limited company (Sdn Bhd).
This includes fees for company name search, registration fee, stamp duty, and professional fees for company secretary and legal services. However, the cost may be higher if you require additional services or if there are complex issues involved.
It’s best to consult with a professional service provider or the Companies Commission of Malaysia (SSM) for more accurate information.
Can I register a company by myself in Malaysia?
Yes, you can register a company by yourself in Malaysia. However, according to the Companies Act 2016 in Malaysia, a company must have at least one director who is at least 18 years old and is residing in Malaysia. So, even if you are registering the company alone, you would still need to find a resident director.
In addition, you must engage the services of a company secretary who will handle the registration process. The company secretary must be a member of a professional body prescribed by the Minister of Domestic Trade Cooperative and Consumerism or licensed by the Companies Commission of Malaysia.
Remember, you should always consult with a legal professional to get accurate advice tailored to your specific circumstances.
Where to register a company in Malaysia?
You can register your company in Malaysia at the Companies Commission of Malaysia (SSM), which is also known as Suruhanjaya Syarikat Malaysia. It is the statutory body formed under an Act of Parliament that regulates companies and businesses in Malaysia.
You can register both online and offline. If you choose to register online, you can use the SSM’s online portal, called the MyCoID portal. If you register offline, you can visit any SSM counter or the Registrar of Companies (ROC).
Do small business need to register in Malaysia?
Yes, small businesses need to register in Malaysia. According to the Registration of Businesses Act 1956, all types of businesses, including small businesses, are required to be registered with the Companies Commission of Malaysia (SSM).
This applies to businesses run by individuals, partnerships, or a body of persons, whether or not it is a small business.
Do freelancers need to register a company Malaysia?
No, freelancers in Malaysia do not need to register a company. They can operate as individuals. However, if they want to have a formal business structure, they can register as a sole proprietorship.
They may also need to register for taxation purposes if their income exceeds a certain threshold. It is recommended to consult with a professional or legal expert to understand all legal and tax obligations.
Is it legal to do business at home in Malaysia?
Yes, it is legal to do business at home in Malaysia, but it depends on the type of business. For some businesses, you may need to obtain specific licenses or permits.
It’s also important to note that if you’re renting, your lease agreement may have restrictions on running a business from home. Always check local regulations and consult with a legal expert to ensure you’re in compliance with all laws.