Before getting to the important steps to register company in Malaysia, let’s be introduced to the statutory body that regulates companies and businesses based in Malaysia, the Companies Commission of Malaysia (SSM).
SSM came into operation on 16 April 2002. It serves as an agency to incorporate companies and register businesses, as well as to provide company and business information in response to any inquiry from the public. Another critical function of SSM is to ensure compliance with business registration and corporate legislation, in order to maintain reliability and integrity in the Malaysian corporate and business sectors.
Register Company in Malaysia
Understand Malaysia’s Business Structures
Seven different forms of business structures are available in Malaysia, four of which are companies: Company Limited by Shares (Sendirian Berhad or Berhad), Company Limited by Guarantee (with or without Berhad or Bhd), Branch of a Foreign Company and Unlimited Company; the other three being Limited Liability Partnership, Partnership and Sole Proprietorship.
Foreigners are only allowed to register a Sendirian Berhad (Sdn Bhd) company in Malaysia, which is a private limited company. 100% ownership is allowed, except for the Education, Oil and Gas, Banking, Tourism and Agriculture industries.
Read more about the Advantages of Registering a Sdn Bhd Company.
Search and Register a Business Name
After you have shortlisted the business names that represent your company and brand identity most suitably, you will need to run a name check for their availability, as well as compliance with the law. The request form for name availability is available from and submitted to the SSM, and a fee of RM30 is charged for each name applied. Incorporation Agents usually include this name check and reservation requirment in their open company in Malaysia packages.
A business name should not go against the constitution, the law and should not have any negative elements, or violate general prescribed principles stipulated by the SSM.
Required Information and Documents to Open Company in Malaysia
Once your business name is approved and reserved, the following is required by your incorporation agent to successfully register company in Malaysia:
- Current residential address in Malaysia for each director and shareholder of the company. Residential address in Malaysia is mandatory for both Malaysian citizens and foreign nationals
- Copy of the directors’ identification card and shareholders (Malaysian citizen); copy of passport (foreign national)
- Contact information (email, telephone, mobile number) each Director and Shareholder
- Percentage of shares to be held by shareholders
- Number of share units to be held by shareholders
- Main business address of the company
As every business in Malaysia is required to have a legally registered local office address, incorporation agents usually also include that service in their registration packages.
Opening a Company Bank Account
Though not mandatory, a corporate bank account facilitates your business functions, tax reporting and business loan applications. Transacting with clients through a corporate account (instead of a personal bank account) also generates more trust and credibility, improving your company’s image.
Specific requirements by individual banks vary, but generally, you will need to prepare the following items in order to complete an application for a corporate bank account for your newly incorporated company in Malaysia:
- Completed application forms
- Recommendation of an introducer (if requested)
- Company’s rubber stamp
- Photocopies of Identity Cards of directors and authorised signatories
- Certified true copy by the Company Secretary of
- Resolution from Board of Directors to open account & list of authorised signatories
- Return of Allotment of Shares
- List of Directors
- Registered Office Address
- Memorandum & Articles of Association (M&A)
- Borang 9 – Certificate of Incorporation