Understanding the stages required in registering a business is informative and important for individuals beginning new enterprises in Malaysia. This guide will walk you through the process. In general, there are three stages involved when setting up Sdn. Bhd. Company in Malaysia which consists of registration preparation, registration, and post-registration. This guide will walk you through the 1st stage and 2nd stage. We will discuss about 3rd stage in the other post soon
Step 1: Registration Preparation
The first stage in forming a corporation is to determine the basic needs, which include determining the best business structure for your company, choosing a name, deciding and appointing qualified officials, establishing a registered office, and determining capital requirements.
The processes for preparing to register a business are outlined below:
1. Choosing a suitable company name
You may need to think of at least 3 names that you will use as your new company’s name. After you’ve decided on a name, you should check it with the Companies Commission of Malaysia (SSM). You can register the name with the SSM once the name check is done. The name will be reserved for your firm after it has been approved.
According to the guidelines of the Malaysian company name regulation, Malaysian company names shall have the following characteristics:
– The name must be properly spelled and written.
– The meaning of any terms in the name that are not in Malay or English must be provided.
– When used to describe the type of business, a mix of Malay and English is acceptable as long as proper grammar is followed.
– Names that are neither profane nor likely to offend the general public.
– Names that do not have any religious connotations.
– Avoid using names like Technology Sdn. Bhd. or International Sdn. Bhd. because they are too broad.
– The company names can only be the names provided by the directors which are listed on the incorporation application form.
– The meaning of words that have been developed or coined must be determined.
– The number of symbols that can be used in the company name is restricted to five which is inclusive of & (includes and, as well as N),. (dot symbol), – (hyphen symbol), () (bracket symbol), ‘(apostrophe symbol).
– The name is not an abbreviation and should not be mistaken with the following names which include institutions of higher learning’s names and the name applies to federal government agencies as well as state and government-owned businesses.
2. Choose your company’s officers and equity
– A minimum of one director is required.
– Maximum: indefinite
– You must be a natural.
– Over the age of eighteen
– A minimum of one shareholder is required.
– Maximum: indefinite (limited to 50 for private limited company)
– It could be an individual or a company.
– Individuals must be at least 18 years old
Company Secretary: One company secretary is required and he/she must be a member of a professional organization or licensed by the SSM.
Address of Registration: To receive formal correspondence and paperwork from the government, you must have a registered office address. P.O. boxes are prohibited from registering as registered office addresses.
– Minimum: RM1
– Maximum: Unlimited
Step 2: Registration
After you’ve completed the preparation stage, the following step is to register your firm with the appropriate Malaysian authorities. This step will lead you through the process of registering your business and the documentation you shall prepare.
The company’s name must be registered through SSM. When a name is confirmed, it is reserved for 30 days from the date of confirmation, with the option to extend for another 30 days for RM50. The following documents are required to incorporate your business:
– Constitution (optional)
– Declaration by a director or promoter before the appointment
– Declaration of compliance
– Copy of the IC of every director
Here is the guide for you to set up Sdn. Bhd. Company. You may hire a specialized person to assist you in doing it if you feel that it is complicated. Bear in mind that the documents needed to be submitted on time to avoid any issues occurring.