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Starting Company

Updated: Sep 10, 2023


Starting Company | Bestar
Starting Company | Bestar

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


1. Decide on your business idea and structure. What kind of business do you want to start? What will be your business structure? There are three main types of business structures in Malaysia: sole proprietorship, partnership, and limited liability company (Sdn Bhd).


2. Choose a company name. The company name must be unique and cannot be the same as any other existing company name in Malaysia. You can check the availability of a company name with the Companies Commission of Malaysia (SSM).


3. Prepare the necessary documents. The documents you need to prepare will vary depending on the type of business structure you choose. For a Sdn Bhd, you will need to prepare the following documents:

  • Memorandum and Articles of Association

  • Declaration of Compliance

  • Statutory Declaration

  • Consent to Act as Director

  • Shareholder's Agreement (optional)


4. File the incorporation documents with SSM. You can file the incorporation documents online or at the SSM office. The filing fee for a Sdn Bhd is RM1,000.


5. Get the necessary licenses and permits. Depending on the type of business you are starting, you may need to obtain certain licenses and permits from the relevant government authorities.


6. Open a business bank account. You will need to open a business bank account to deposit your business funds and make business transactions.


7. Register for taxes. You will need to register for taxes with the Inland Revenue Board (LHDN). The types of taxes you need to register for will depend on the type of business you are starting.


8. Promote your business. Once you have all the necessary paperwork in order, you can start promoting your business. There are many ways to promote your business, such as online marketing, print advertising, and word-of-mouth.


Here are some additional tips for starting a company in Malaysia:

  • Do your research. Before you start a business, it is important to do your research and understand the Malaysian business environment. This includes understanding the different types of business structures, the necessary licenses and permits, and the tax requirements.

  • Get professional help. If you are not familiar with the Malaysian business environment, it is a good idea to get professional help from Bestar. We can help you with the incorporation process, obtaining licenses and permits, and registering for taxes.

  • Be patient. Starting a business takes time and effort. Don't expect to become successful overnight. Be patient and persistent, and you will eventually achieve your goals.

Here are some business ideas that you can start with RM10,000 in Malaysia:

  • Food truck business

  • Pet care services

  • Event planning

  • Printing services

  • Affiliate marketing

  • Freelance services

  • Repair of computers and smart devices

  • Sales of mobile devices and other electronics

These are just a few ideas to get you started. There are many other business ideas that you can start with a small budget. The most important thing is to choose a business that you are passionate about and that you believe in.


Company Type


There are 8 types of business entities that you can register in Malaysia:

  • Sole Proprietorship

A sole proprietorship is a business owned and operated by one person. The owner is personally liable for all debts and obligations of the business.


  • Partnership

A 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)

An LLP is a partnership where the partners' liability is limited to their investment in the LLP.


  • Private Limited Company (Sdn Bhd)

A Sdn Bhd is a company that is limited by shares. The shareholders of a Sdn Bhd are not personally liable for the debts and obligations of the company.


  • Public Limited Company (Berhad)

A Berhad is a company that is limited by shares and is listed on a stock exchange. The shareholders of a Berhad are not personally liable for the debts and obligations of the company.


  • Unlimited Company

An unlimited company is a company where the shareholders are personally liable for the debts and obligations of the company.


  • Foreign Company

A foreign company is a company that is incorporated in another country but has a branch or place of business in Malaysia.


  • Company Limited by Guarantee (CLG)

A CLG is a company where the members are liable to contribute to the assets of the company in the event of its winding up, but only to the extent of a fixed amount.


The most common type of business entity in Malaysia is the Sdn Bhd. This is because Sdn Bhds offer limited liability protection to their shareholders, which makes them a more attractive option for businesses that want to minimize their risk.


The type of business entity you choose will depend on the size and structure of your business, as well as your personal preferences. If you are not sure which type of business entity is right for you, you should consult with Bestar.


Company Features


There are a number of features that are common to companies in Malaysia, regardless of their size or industry. These features include:

  • Limited liability: The shareholders of a company in Malaysia are not personally liable for the debts and obligations of the company. This means that if the company goes bankrupt, the shareholders' personal assets will not be at risk.

  • Transferability of shares: Shares in a company in Malaysia can be freely transferred to another person. This makes it easy for investors to buy and sell shares in a company, which can help to increase the liquidity of the company's shares.

  • Perpetual succession: A company in Malaysia is a legal entity that is separate from its shareholders. This means that the company can continue to exist even if the shareholders change.

  • Corporate governance: Companies in Malaysia are subject to a number of corporate governance requirements. These requirements are designed to ensure that the company is managed in a responsible and transparent manner.

  • Taxation: Companies in Malaysia are subject to a variety of taxes, including corporate income tax, goods and services tax, and withholding tax.

In addition to these general features, there are also a number of specific features that may apply to companies in certain industries or sectors. For example, companies in the financial services industry are subject to additional regulations and requirements.


If you are considering starting a company in Malaysia, it is important to understand the features that are common to companies in Malaysia. This will help you to make informed decisions about the structure and operation of your company.


Here are some additional features that may apply to companies in Malaysia:

  • Minimum paid-up capital: The Companies Act 2016 requires that all companies in Malaysia have a minimum paid-up capital of RM1.

  • Resident director: All companies in Malaysia must have at least one resident director. A resident director is a person who is ordinarily resident in Malaysia.

  • Company secretary: All companies in Malaysia must have a company secretary. A company secretary is a person who is responsible for ensuring that the company complies with the Companies Act 2016 and other relevant laws.

  • Annual returns: All companies in Malaysia are required to file annual returns with the Companies Commission of Malaysia (SSM). The annual returns must include information about the company's directors, shareholders, and financial performance.

Requirements for Company Incorporation


The requirements for company incorporation in Malaysia vary depending on the type of company you are incorporating. However, there are some general requirements that all companies must meet. These requirements include:

  • Company name: The company name must be unique and cannot be the same as any other existing company name in Malaysia. You can check the availability of a company name with the Companies Commission of Malaysia (SSM).

  • Memorandum and Articles of Association: The Memorandum and Articles of Association are the governing documents of the company. They set out the company's objectives, structure, and management.

  • Declaration of Compliance: The Declaration of Compliance is a document that confirms that the company has met all the requirements for incorporation.

  • Statutory Declaration: The Statutory Declaration is a document that is signed by the company's directors and shareholders. It confirms that they have read and understood the Memorandum and Articles of Association, and that they agree to be bound by them.

  • Consent to Act as Director: The Consent to Act as Director is a document that is signed by the company's directors. It confirms that they agree to act as directors of the company.

  • Shareholder's Agreement (optional): The Shareholder's Agreement is an optional document that sets out the terms and conditions of the shareholders' relationship.

In addition to these general requirements, there are also some specific requirements that may apply to companies in certain industries or sectors. For example, companies in the financial services industry are subject to additional regulations and requirements.


If you are considering starting a company in Malaysia, it is important to understand the requirements for company incorporation. This will help you to make informed decisions about the structure and operation of your company.


Here are some additional resources that you may find helpful:


Company Incorporation Procedures


The company incorporation procedures in Malaysia are as follows:


1. Check the availability of the company name. You can check the availability of a company name with the Companies Commission of Malaysia (SSM).


2. Prepare the incorporation documents. The incorporation documents you need to prepare will vary depending on the type of company you are incorporating. However, the basic documents include:

  • Memorandum and Articles of Association

  • Declaration of Compliance

  • Statutory Declaration

  • Consent to Act as Director

  • Shareholder's Agreement (optional)


3. File the incorporation documents with SSM. You can file the incorporation documents online or at the SSM office. The filing fee for a Sdn Bhd is RM1,000.


4. Obtain the Certificate of Incorporation. Once the incorporation documents have been filed and approved, SSM will issue a Certificate of Incorporation. This is the official document that confirms that the company has been incorporated.


5. Open a business bank account. You will need to open a business bank account to deposit your business funds and make business transactions.


6. Register for taxes. You will need to register for taxes with the Inland Revenue Board (LHDN). The types of taxes you need to register for will depend on the type of business you are operating.


7. Promote your business. Once you have all the necessary paperwork in order, you can start promoting your business. There are many ways to promote your business, such as online marketing, print advertising, and word-of-mouth.


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

  • Do your research. Before you start a business, it is important to do your research and understand the Malaysian business environment. This includes understanding the different types of business structures, the necessary licenses and permits, and the tax requirements.

  • Get professional help. If you are not familiar with the Malaysian business environment, it is a good idea to get professional help from Bestar. We can help you with the incorporation process, obtaining licenses and permits, and registering for taxes.

  • Be patient. Starting a business takes time and effort. Don't expect to become successful overnight. Be patient and persistent, and you will eventually achieve your goals.

Registration Fee


The starting company registration fee in Malaysia is RM1,000. This is the fee for incorporating a private limited company (Sdn Bhd) with the Companies Commission of Malaysia (SSM). The fee is inclusive of tax.


There are other fees that may be incurred when starting a company in Malaysia, such as the following:

  • Name reservation fee: RM50 per name

The total cost of starting a company in Malaysia will vary depending on the type of company you are incorporating and the specific services you need. However, the starting company registration fee of RM1,000 is a good starting point for budgeting purposes.


Here are some additional resources that you may find helpful:


Note


Here are some notes on starting a company in Malaysia:

  • Do your research. Before you start a business, it is important to do your research and understand the Malaysian business environment. This includes understanding the different types of business structures, the necessary licenses and permits, and the tax requirements.

  • Get professional help. If you are not familiar with the Malaysian business environment, it is a good idea to get professional help from Bestar. They can help you with the incorporation process, obtaining licenses and permits, and registering for taxes.

  • Be patient. Starting a business takes time and effort. Don't expect to become successful overnight. Be patient and persistent, and you will eventually achieve your goals.

Here are some of the steps involved in starting a company in Malaysia:


1. Choose a business structure. There are three main types of business structures in Malaysia: sole proprietorship, partnership, and limited liability company (Sdn Bhd).


2. Choose a company name. The company name must be unique and cannot be the same as any other existing company name in Malaysia. You can check the availability of a company name with the Companies Commission of Malaysia (SSM).


3. Prepare the incorporation documents. The incorporation documents you need to prepare will vary depending on the type of company you are incorporating. However, the basic documents include:

  • Memorandum and Articles of Association

  • Declaration of Compliance

  • Statutory Declaration

  • Consent to Act as Director

  • Shareholder's Agreement (optional)

4. File the incorporation documents with SSM. You can file the incorporation documents online or at the SSM office. The filing fee for a Sdn Bhd is RM1,000.


5. Obtain the Certificate of Incorporation. Once the incorporation documents have been filed and approved, SSM will issue a Certificate of Incorporation. This is the official document that confirms that the company has been incorporated.


6. Open a business bank account. You will need to open a business bank account to deposit your business funds and make business transactions.


7. Register for taxes. You will need to register for taxes with the Inland Revenue Board (LHDN). The types of taxes you need to register for will depend on the type of business you are operating.


8. Promote your business. Once you have all the necessary paperwork in order, you can start promoting your business. There are many ways to promote your business, such as online marketing, print advertising, and word-of-mouth.


Here are some of the costs involved in starting a company in Malaysia:

  • Incorporation fee: RM1,000

  • Name search fee: RM50 per name

The total cost of starting a company in Malaysia will vary depending on the type of company you are incorporating and the specific services you need. However, the starting company registration fee of RM1,000 is a good starting point for budgeting purposes.


How Bestar Helps in Starting Company


Bestar is a company registration and corporate secretarial services provider in Malaysia. We offer a comprehensive range of services to help businesses start, grow, and manage their operations in Malaysia.


Bestar can help you with the following aspects of starting a company in Malaysia:

  • Company registration: Bestar can help you register your company with the Companies Commission of Malaysia (SSM). We will take care of all the paperwork and ensure that your company is compliant with the law.

  • Company name search: Bestar can help you search for a unique company name that is available for registration. We will also check the availability of the company name with the SSM.

  • Memorandum and Articles of Association: Bestar can help you draft your Memorandum and Articles of Association (M&AA). The M&AA is the governing document of your company and sets out its structure, management, and operations.

  • Consent to Act as Director: Bestar can help you obtain the consent of your directors to act as directors of your company. This is a legal requirement for all companies in Malaysia.

  • Statutory Declaration: Bestar can help you prepare a Statutory Declaration for your company. The Statutory Declaration is a document that confirms that your company has met all the requirements for registration.

  • Business bank account: Bestar can help you open a business bank account for your company. This is essential for receiving and making payments on behalf of your company.

  • Tax registration: Bestar can help you register your company for taxes with the Inland Revenue Board (LHDN). This is a legal requirement for all companies in Malaysia.

  • Company secretarial services: Bestar can provide you with ongoing company secretarial services, such as filing annual returns with the SSM and maintaining your company's records.

Bestar is a reliable and experienced company registration and corporate secretarial services provider in Malaysia. We can help you with all aspects of starting a company in Malaysia, from company registration to tax registration and company secretarial services.


Here are some of the benefits of using Bestar to help you start a company in Malaysia:

  • Expertise: Bestar has a team of experienced professionals who can help you with all aspects of starting a company in Malaysia.

  • Convenience: Bestar can handle all the paperwork and ensure that your company is compliant with the law. This saves you time and hassle.

  • Peace of mind: Knowing that your company is in good hands with Bestar gives you peace of mind. You can focus on running your business knowing that your company's legal and compliance needs are being taken care of.


Connect with Bestar


If you are considering starting a company in Malaysia, contact Bestar to discuss your needs. We will be able to help you understand the process and provide you with a quote for our services.



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