company-incoporation-malaysia

COMPANY INCORPORATION IN MALAYSIA 2022

DEFINITION:

The present process to get a company registered in Malaysia 2022 is a very simple and straightforward hassle-free one. An individual can incorporate their company in Malaysia even with one hundred percent foreign stockholding. Such a company is called Sendirian Berhad in Malaysia. However, the Government of Malaysia has put down a list specific industries which can enjoy the advantage of total foreign ownership.

A foreigner may start business in Malaysia by way of a merger with a local company or by registering the said foreign company in Malaysia with the Companies Commission of Malaysia. As per the laws prevailing in Malaysia, only the two above mentioned types of companies can be incorporated in Malaysia.

BENEFITS OF INCORPORATING A COMPANY IN MALAYSIA 2022

  • The low wage bracket where the average wage is as low as $ 2.31 per hour
  • The rates of rent are very reduced
  • The Government of Malaysia levies no withholding tax on any dividend paid outside Malaysia.
  • There is no restriction imposed on the companies incorporated in Malaysia upon repatriation of profits/capital/royalties, and dividends.
  • The Government of Malaysia provides large subsidies and incentives to companies to encourage larger capital investment and business formation.

KEY REQUIREMENTS FOR COMPANY REGISTRATION IN MALAYSIA

  • A minimum of 2 subscribers and directors is mandatorily required to register a company in Malaysia.
  • A company has to appoint a company secretary who is a member of the professional body by the Minister of Domestic Trade Cooperative and Consumerism and should be licensed by the Companies Commission of Malaysia (SSM).
  • It is mandatorily stated by the Government that the company secretary and the proposed director of the company will have their principal place of residence in Malaysia only.
  • To apply for company registration, the company must refer to the Government Gazette which have the required guidelines for applying for the said verification.

THE STEPS INVOLVED IN FILING A NAME AVAILABILITY APPLICATION ARE:

  • To register a company, the Inland Revenue Board should affix the official company stamp. The AOA & MOA must mention the details of all the secretaries and directors. The subscribers of the shares of the company also have to sign the AOA & MOA in presence of a witness
  • The director or promoter of the company have to file a declaration stating the he or she is not bankrupt and has no criminal record
  • The designated company secretary must also sign a compliance declaration which certifies that all the statutory requirements as prescribed in the Companies Act have been complied with
  • The identity proof of directors has to be submitted.
  • A Company name approval letter has to be obtained from SSM.
  • After the company complies with the process of application and submits all the valid documents and pays the application fee, the SSM will issue the Certificate of Corporation. Then, the said company must obtain the permit to start business operations as mentioned in the MOA.

All the documents which are required must be in either English or Malay language.

REGISTERING A COMPANY IN MALAYSIA

  • The company has to select a suitable name for itself and then have the same name verified for availability. To do this, the said company must refer to the Government Gazette which has all the required guidelines needed to apply for the said verification.
  • To register a company, the Inland Revenue Board should affix the official company stamp. The AOA & MOA must mention the details of all the secretaries and directors. The subscribers of the shares of the company also have to sign the AOA & MOA in presence of a witness
  • The director or promoter of the company have to file a declaration stating the he or she is not bankrupt and has no criminal record
  • The designated company secretary must also sign a compliance declaration which certifies that all the statutory requirements as prescribed in the Companies Act have been complied with
  • The identity proof of directors has to be submitted.
  • A Company name approval letter has to be obtained from SSM.
  • After the company complies with the process of application and submits all the valid documents and pays the application fee, the SSM will issue the Certificate of Corporation. Then, the said company must obtain the permit to start business operations as mentioned in the MOA.

All the documents which are required must be in either English or Malay language.

Our team of tax and legal experts at ACE ALLIANCE  will address all your queries about Company Incorporation in the Malaysia. Our team will assist you to get the whole process of filing and registration completed and help you with any post-registration formalities and compliances that may crop up.