Setting Up an Sdn Bhd Company in Malaysia

Malaysia has become one of the main destinations in Asia for business registration. In Malaysia, foreigners can own 100% of the company if the company has been registered as an Sdn Bhd company.

The Malaysian Business Commission (SSM) is the governing body that oversees all business records in Malaysia. Registration must be done through a certified local secretary of the company.

S & F Consulting Firm Limited offers company registration services and our comprehensive solutions will serve all the companies you need so you can register your company quickly and effectively in Malaysia.

Malaysia Company Registration Benefits

• Strategic location in Asia
• Ranked 15th by the World Bank in 2019 for ease of doing business
• No restrictions when it comes to repatriation of capital, profits, royalties, and dividends.
• Double tax treaties with many other countries.
• Low initial costs and rental rates Those who register an Sdn Bhd company in Malaysia will experience the following benefit:
• Limited liabilities
• Business continuity because an Sdn Bhd company will never expire
• Ease of acquiring loans
• Exposure to low-income tax risk
• The company is considered a separate legal entity

Important Points to Consider Before Registering a Company in Malaysia 

There are certain points to consider for those who plan to register a company in Malaysia. They are the following:

• Business field
• Business plan
• Business entity
• Licenses and approvals
• Registration Costs
• In the case of foreigners, other problems that may arise specifically with respect to foreigners living and working in Malaysia

Commercial entity options in Malaysia

The types of business entities from which you can choose to register a company in Malaysia are the sole proprietorship, the company and the company Sendirian Berhad (Sdn Bhd). The following paragraphs will explain more about the Sdn Bhd company and how one can be established in Malaysia.

Incorporation of an Sdn Bhd company in Malaysia

The registration process of an Sdn Bhd company in Malaysia is similar to the registration processes related to all other commercial entities in Malaysia. Before one can register a company in Malaysia, the potential owner of the company must conduct a search for the company name. This is a mandatory step. The name of the chosen company must be reserved for the incorporation process once it has been approved. The name of the company chosen will be reserved for a period of three months from the date of approval.

To register an Sdn Bhd company in Malaysia, the following are required: 

• Company name
• Business activities
• Registered office in Malaysia
• The director who is at least 18 years old, is not a convicted criminal for the past five years, is not bankrupt and resides in Malaysia or has any of the usable work visas.
• Shareholder
• Corporate secretary who must be a member of any of the prescribed professional bodies, licensed by SSM, or both
• Minimum paid capital of RM2
• Copy of the identification card (IC) or passport of all directors and shareholders

 Duration of Each Step of Sdn Bhd Company Registration 

Those who choose to register an Sdn Bhd company in Malaysia can expect the following durations for each step of the process:

• Search for company name: within 24 hours
• Preparation of registration documents - within 2-3 days
• Signature of documents by all directors and shareholders - within 1 day
• Sending documents to SSM - within 3-5 days
• Certificate of digital incorporation issued by SSM - within 1 day

These durations are estimates; In some cases, delays may occur if SSM needs more time to verify the incorporation documents provided. It is the responsibility of the potential owner of the company to ensure that all information submitted for incorporation purposes are accurate.

Company Secretarial Services

A company secretary is an important part of a business as it is the company secretary who will have to deal with regulations, policies, standards, code of ethics, and guidelines during the company registration process. At S & F Consulting Firm Limited, our company secretarial services Malaysia will ensure that our experienced corporate specialists will not only supply you with our best practices, but also provide you with our full range of services including advisory services, statutory services, preparation of resolutions, and others. All of our company secretarial services follow the regulations stipulated in the Malaysia Companies Act 2016.