top of page

​​In​corporation of Company

Updated: Sep 7, 2023


​​In​corporation of Company | Bestar
​​In​corporation of Company | Bestar

​​In​corporation of Company


Here are the steps on how to incorporate a company in Malaysia:

  1. Conduct a name search. You need to check with the Companies Commission of Malaysia (SSM) if the proposed company name is available. You can do this online or by submitting a hard copy application to SSM.

  2. Prepare the incorporation documents. These documents include the Memorandum of Association (MoA), Articles of Association (AoA), and Declaration of Compliance. You can get these documents from a lawyer or a company incorporation service provider.

  3. Sign the incorporation documents. Once the documents are prepared, you need to sign them in front of a commissioner for oaths (CVO).

  4. Submit the incorporation documents to SSM. You can submit the documents online or by post.

  5. Pay the incorporation fees. The incorporation fees are RM1,000 for a private limited company and RM3,000 for a public limited company.

  6. Obtain the Certificate of Incorporation. SSM will process your application and issue a Certificate of Incorporation within 14 working days.

Here are some additional requirements for incorporating a company in Malaysia:

  • The company must have at least one director and one shareholder.

  • The director(s) must be natural persons who are at least 18 years old.

  • The company must have a registered office in Malaysia.

  • The company must have a paid-up capital of at least RM1.

Once the company is incorporated, you need to take the following steps:

  • Open a corporate bank account.

  • Obtain the necessary permits and licenses.


Company Type


There are 8 types of business entities that can be registered in Malaysia:

  • Sole proprietorship is a business owned and operated by a single individual. The owner is personally liable for all debts and obligations of the business.

  • Partnership is a business owned and operated by two or more people. The partners are jointly and severally liable for all debts and obligations of the business.

  • Limited liability partnership (LLP) is a business owned and operated by two or more people. The partners are only liable for their own debts and obligations, not for the debts and obligations of the other partners.

  • Private limited company (Sdn Bhd) is a business that is separate from its owners. The shareholders are only liable for the amount of their investment in the company.

  • Public limited company is a business that is similar to a private limited company, but it can raise capital by issuing shares to the public.

  • Company limited by guarantee is a business that is similar to a private limited company, but the shareholders are not liable for the debts and obligations of the company.

  • Foreign company is a business that is incorporated in another country, but has a branch in Malaysia.

The most common type of business entity in Malaysia is the private limited company (Sdn Bhd). This is because it offers the most protection for the owners of the business.


The type of business entity that you choose will depend on the size and nature of your business, as well as your personal preferences. If you are unsure which type of business entity is right for you, you should consult with Bestar.


Here is a table summarizing the key features of each type of business entity in Malaysia:

​Business Entity

​Liability of Owners

​Number of Owners

​Minimum Paid-up Capital

​Sole proprietorship

​Unlimited

​1

N/A

​Partnership

​Joint and several

​2 or more

​N/A

​Limited liability partnership (LLP)

​Limited

​2 or more

​N/A

​Private limited company (Sdn Bhd)

​Limited

​1 to 50

​RM1

​Public limited company

​Limited

​1 or more

​RM1

​Company limited by guarantee

​Limited

​2 or more

​N/A

​Foreign company

​Varies

​Varies

​Varies

Company Features

Here are some of the key features of companies in Malaysia:

  • Limited liability: The liability of the owners of a company is limited to the amount of their investment in the company. This means that if the company goes bankrupt, the owners will not be personally liable for the company's debts.

  • Separate legal entity: A company is a separate legal entity from its owners. This means that the company can own property, enter into contracts, and sue or be sued in its own name.

  • Transferability of shares: The shares of a company can be freely transferred to other people. This makes it easy to raise capital for the company.

  • Ease of raising capital: Companies can raise capital by issuing shares to the public or by borrowing money from banks.

  • Flexibility of profit distribution: The profits of a company can be distributed to the shareholders in any way that is agreed upon by the shareholders.

  • Reputation: A company is seen as a more reputable form of business than other forms, such as sole proprietorships or partnerships. This can be important for businesses that want to do business with other companies or that want to attract investors.

Here are some of the specific requirements for companies in Malaysia:

  • The company must have a name that is unique and that is not already registered with the Companies Commission of Malaysia (SSM).

  • The company must have at least one director and one shareholder.

  • The director(s) must be natural persons who are at least 18 years old.

  • The company must have a registered office in Malaysia.

  • The company must have a paid-up capital of at least RM1.

The Companies Act 2016 is the main law that governs companies in Malaysia. The Act sets out the requirements for incorporating a company, the rights and obligations of shareholders and directors, and the procedures for winding up a company.


Requirements for Company Incorporation


Here are the requirements for company incorporation in Malaysia:

  • Unique company name: The company name must be unique and not already registered with the Companies Commission of Malaysia (SSM).

  • At least one director and one shareholder: The company must have at least one director and one shareholder. The director(s) must be natural persons who are at least 18 years old.

  • Registered office in Malaysia: The company must have a registered office in Malaysia.

  • Paid-up capital of at least RM1: The company must have a paid-up capital of at least RM1.

  • Memorandum of Association (MoA) and Articles of Association (AoA): The company must have a MoA and AoA. These documents set out the company's constitution and the rights and obligations of the shareholders and directors.

  • Declaration of Compliance: The company must have a Declaration of Compliance. This document is signed by the directors and shareholders of the company and declares that the company has complied with all the requirements for incorporation.

In addition to these requirements, the company may also need to obtain certain permits or licenses from the relevant government authorities. For example, if the company is engaged in a regulated industry, such as the financial services industry, it may need to obtain a license from the relevant regulator.


The Companies Commission of Malaysia (SSM) is the government agency responsible for registering companies in Malaysia. The SSM website has a comprehensive guide to the requirements for company incorporation.


Company Incorporation Procedures


Here are the company incorporation procedures in Malaysia:

  1. Conduct a name search. You need to check with the Companies Commission of Malaysia (SSM) if the proposed company name is available. You can do this online or by submitting a hard copy application to SSM.

  2. Prepare the incorporation documents. These documents include the Memorandum of Association (MoA), Articles of Association (AoA), and Declaration of Compliance. You can get these documents from Bestar.

  3. Sign the incorporation documents. Once the documents are prepared, you need to sign them.

  4. Submit the incorporation documents to SSM. You can submit the documents online or by post.

  5. Pay the incorporation fees. The incorporation fees are RM1,000 for a private limited company and RM3,000 for a public limited company.

  6. Obtain the Certificate of Incorporation. SSM will process your application and issue a Certificate of Incorporation within 1 working day.

Here are the steps in more detail:


1. Conduct a name search


You can check the availability of a company name online at the SSM website. You will need to provide the proposed company name and the type of company you are incorporating.


2. Prepare the incorporation documents


The incorporation documents are the MoA, AoA, and Declaration of Compliance. The MoA sets out the company's constitution and the rights and obligations of the shareholders and directors. The AoA sets out the company's operating procedures. The Declaration of Compliance is a document signed by the directors and shareholders of the company that declares that the company has complied with all the requirements for incorporation.


You can get the incorporation documents from Bestar.


3. Sign the incorporation documents


Once the incorporation documents are prepared, you need to sign them.


4. Submit the incorporation documents to SSM


You can submit the incorporation documents online or by post. If you are submitting the documents online, you will need to create an account on the SSM website. If you are submitting the documents by post, you will need to send them to the SSM office in your state.


5. Pay the incorporation fees


The incorporation fees are RM1,000 for a private limited company and RM3,000 for a public limited company. You can pay the fees online or by post.


6. Obtain the Certificate of Incorporation


SSM will process your application and issue a Certificate of Incorporation within 5 working days. The Certificate of Incorporation is a legal document that confirms that your company has been incorporated.


Registration Fee


The registration fee for the incorporation of a company in Malaysia is RM1,000 for a private limited company and RM3,000 for a public limited company. This fee is payable to the Companies Commission of Malaysia (SSM).


In addition to the registration fee, there are other fees that may be payable, such as the name search fee, and the postage fee. The name search fee is RM50 for the first name search and RM50 for subsequent name searches. The postage fee depends on the method of submission of the incorporation documents.


The total cost of incorporating a company in Malaysia can vary depending on the specific circumstances, but it is typically around RM1,500 for a private limited company and RM3,500 for a public limited company.


Here is a table summarizing the fees for incorporating a company in Malaysia:

​Fee

Type of Company

​Registration fee

​RM1,000 (private limited company)

​RM3,000 (public limited company)

​Name search fee

​RM50 (first name search)

​RM50 (subsequent name searches)

​Postage fee

​Varies

Note


Here are some notes on the incorporation of a company in Malaysia:

  • The company name must be unique and not already registered with the Companies Commission of Malaysia (SSM).

  • The company must have at least one director and one shareholder. The director(s) must be natural persons who are at least 18 years old.

  • The company must have a registered office in Malaysia.

  • The company must have a paid-up capital of at least RM1.

  • The company must have a Memorandum of Association (MoA) and Articles of Association (AoA). These documents set out the company's constitution and the rights and obligations of the shareholders and directors.

  • The company must have a Declaration of Compliance. This document is signed by the directors and shareholders of the company and declares that the company has complied with all the requirements for incorporation.

In addition to these requirements, the company may also need to obtain certain permits or licenses from the relevant government authorities. For example, if the company is engaged in a regulated industry, such as the financial services industry, it may need to obtain a license from the relevant regulator.


The Companies Commission of Malaysia (SSM) is the government agency responsible for registering companies in Malaysia. The SSM website has a comprehensive guide to the requirements for company incorporation.


Here are some additional notes:

  • The incorporation process can take up to 5 working days.

  • The company will be issued a Certificate of Incorporation once the incorporation process is complete.

  • The company will need to open a corporate bank account and obtain the necessary permits and licenses.

  • The company will need to file its annual returns with SSM.

  • The company will need to pay its taxes.


How Bestar Helps ​​in Incorporation of Company

Bestar is a company formation agent registered with SSM that can help you incorporate a company in Malaysia. They offer a comprehensive service that includes:

  • Conducting a name search to check the availability of the proposed company name.

  • Preparing the incorporation documents, such as the MoA, AoA, and Declaration of Compliance.

  • Signing the incorporation documents.

  • Submitting the incorporation documents to SSM.

  • Paying the incorporation fees.

  • Obtaining the Certificate of Incorporation.

In addition to these services, Bestar can also help you with the following:

  • Opening a corporate bank account.

  • Obtaining the necessary permits and licenses.

  • Filing your annual returns with SSM.

  • Paying your taxes.

Bestar has a team of experienced professionals who can help you with all aspects of company incorporation in Malaysia. We are committed to providing their clients with the highest level of service and support.


Here are some of the benefits of using Bestar to incorporate a company in Malaysia:

  • We are a registered company formation agent with SSM.

  • We have a team of experienced professionals who can help you with all aspects of company incorporation.

  • We offer a comprehensive service that includes name search, preparation of incorporation documents, signing of incorporation documents, submission of incorporation documents to SSM, payment of incorporation fees, and obtaining the Certificate of Incorporation.

  • We are committed to providing our clients with the highest level of service and support.


Connect with Us


If you are considering incorporating a company in Malaysia, contact Bestar to discuss your needs. We can help you understand the requirements for company incorporation in Malaysia and we can help you choose the right type of company for your business.

25 views0 comments

Recent Posts

See All

Comments


bottom of page