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Company Incorporation in Malaysia


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Company registration in Malaysia is a very simple and easy process. One can incorporate a company in Malaysia with 100% foreign ownership. The company is known as Sendirian Berhad. Although the government has listed only few specific industries for the company to work under complete foreign ownership.

A foreigner can start business in Malaysia by either merging with a local company or by registering the foreign company in Malaysia with Companies Commission of Malaysia.

Benefits of incorporating a company in Malaysia

Some are the factors which make Malaysia the leading destination in the world for business owners are mentioned below.

  • Start up costs in Malaysia are one of the lowest in the world.
  • Reduced rental rates.
  • Low Wages i.e. average wages is $2.31 USD per hour.
  • If any dividend is paid outside of Malaysia than there will be No Withholding Taxes by the government.
  • No restrictions on Malaysian corporations upon repatriation of capital, profits, dividends, and royalties.
  • Strong incentives and subsidies are given to encourage the business formation and capital investment by the government.

Following Are Preferred Industries To Start A Business In Malaysia:

Agriculture

Banking and finance

Petroleum, Oil and gas

Tourism Outbound and Ticketing

Education

A company limited by shares.

An Unlimited Company


How to register a company in Malaysia?

  1. Application for name of the company - Select a proper name for the company and then check its availability. To check the availability of company name one needs to refer to Government Gazette, which gives the guidelines regarding the name and application of a company name.

    The Steps Involved In Filing A Name Availability Application Are:

    • Choose a name and file the name application form. SSM does the name approval depending on the availability of the name. The name is reserved for three months from the date of approval.
    • All the incorporation documents need to filed with SSM within 3 months from the date of approval of the company’s name. In case of failure, a fresh application has to be submitted.

  2. MoA and AoA have to be submitted to SSM. The Inland Revenue Board affixes the official stamp. The MoA & AoA should have details of directors and secretaries. The subscribers of the company’s shares are also required to sign the MoA & AoA in the presence of a witness.
  3. The director or promoter have to submit a declaration stating the he/she is not bankrupt and has no criminal record.
  4. The Company secretary should sign the Declaration of Compliance stating that all the requirements of the Companies Act have been adhered to.
  5. Identity proof of directors.
  6. Company name approval letter from SSM.

    After compliance with the procedure and submission of the duly completed Documents with the prescribed fee the SSM issues a Certificate of Corporation. The company shall get the permit from the concerned authority before starting the business activity mentioned in MoA.