Top Questions About Malaysia Company Registration

Malaysian company registration is generally an easy and quick procedure to help people register their businesses and start enjoying the benefits of doing business in Malaysia. However, there are some common questions associated with Malaysia company registration. In this article, you will get the answer to these common questions so that you can go through the process easily.

Question # 01 – What is Sdn Bhd?​

‘Sendirian Berhad’ or ‘Sdn. Bhd’ is a private limited company in Malaysia. Sdn Bhd is the most common type of company registration in Malaysia to do business in the country. It provides limited liability protection to business owners from trading losses. This kind of protection is highly important when you conduct business in volatile economic circumstances.

Question # 02 – What are the benefits of an Sdn Bhd company?​

A private limited company offers many different benefits. Some of them are:

 

  • Quick and easy transfer of ownership via the sale of shares.
  • An Sdn Bhd has unlimited life as per Malaysian law. Even if the company’s owner dies, the company will keep operating.
  • It has limited liability protection that protects the owners’ personal assets.
  • It is easier to raise capital when you operate an Sdh Bhd company because it is possible to sell shares to new investors.
  • The private company enjoys many tax benefits in Malaysia.
  • If a private company grows into a large-scale organization, it is possible to convert it into a public listed company.
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Question # 03 – What are the disadvantages of an Sdn Bhd company?

The only major disadvantage of an Sdn Bhd company is that it has some of the strictest compliance requirements. For instance, it is essential for an Sdn Bhd company to go through an annual statutory audit. In such situations, it is important that you hire a professional and experienced company secretary who can ensure compliance with the regulatory requirements.

Question # 04 – Is it possible to register a company via SSM?

Yes, you can use the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia or SSM in Malaysia) to register your company. The Director is responsible for completing the Malaysia company registration via SSM.

 

It is highly recommended that you rely on your company secretary to complete the registration form and any additional documents so that you can submit the details accurately and prevent any issues in the future.

Question # 05 – What are the requirements to register a Private Limited Company?

Following are the three main requirements of forming a private limited company in Malaysia:

 

  1. The company must have at least one shareholder and capital of RM1.
  2. The company must hire a qualified company secretary within six months of incorporation. It is better to hire a company secretary before the incorporation process.
  3.  An Sdn Bhd in Malaysia must have at least one Malaysian resident director.
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Question # 06 – What documents are required for company registration?​

You need the following documents and information to complete the Malaysia company registration process:

 

 

  • Details about the main business activities.
  • Photocopy of passports of the company directors and shareholders.
  • Complete information about the directors and shareholders that includes their names, email addresses, residential addresses, contact numbers, and NRIC numbers.
  • Proposed company names.
  • Details of RM1 capital submitted into the company.
  • Share division among the shareholders.
  • Documents like Name Reservation Form, Super Form, and the company’s constitution will also have to be submitted.

Question # 07 – Who can be the Company’s Director?

The company’s director must be a natural person aged 18 or above. Moreover, the director should not be bankrupt or have any conviction against him. A private company must have at least one director, while a public company has to hire at least two directors. Moreover, the director must have a principal place of residence in Malaysia.

Question # 08 – What are the responsibilities of a Company’s Director?

Following are the responsibilities of a company’s director:

 

  • The company’s director must be capable of managing the company’s business as per the law and the company’s constitution.
  • The director will make any significant changes in the company like changing the address, dealing with the company secretary, and other such procedures.
  • Both the director and company secretary should work together to ensure compliance with the law.
  • Directors must disclose their interest in different contracts, properties, and offices.

In a Nutshell

These are some of the most commonly asked questions about the Malaysian company registration process. Generally, if you hire a professional and experienced company secretary, you should have no issue completing the registration and incorporation process and start doing business with maximum compliance.