In the last few decades, there has been a paradigm shift towards setting up a business or being an entrepreneur. There are many reasons for this sudden shift, the most common one being an individual’s aspiration to become a hirer and not a hiree. Speaking of one particular country, investors are showing great interest in company registration in Malaysia due to advantages like low income tax exposure, an easier process to get a loan, etc.
But setting up a company in Malaysia can be quite tedious, given the elaborate process for the same. One such process is to register a company name in Malaysia. And as the saying goes, the journey of a thousand miles begins with the first step – while forming a company in Malaysia the first step is to get the trade name of your company reserved and registered.
Now, if you already have a name in mind for your company, the process can be dropped down to just a few steps, but if you are a foreigner and do not have much idea about the whole process of choosing a company name then do not fret on it much. We are here for you!
Principles of Company Nomenclature in Malaysia
In Malaysia, the Companies Act 1965 provides that before a company or its change of name is registered, the Minister of Domestic Trade and Consumer Affairs or the Registrar of Companies must first approve the name or the new name of the company, respectively and accordingly. Without the consent of the Ministry, a company cannot register its name that, in the opinion of the registrar, is undesirable or is a name, or a kind of name, that the Minister has directed the Registrar not to accept for registration.
- The name should have the official language and should be correctly spelled
- In case if the name contains words which are not in Malay or English then the meaning of such words must be given
- The name should not contain a blasphemy or contain offensive words to any member of the public
- The name should not resemble any elements of a religion
- One has to clearly state the meaning of the name to the officials
- The name should not be an acronym to any global giants, like PNB, ICI, IBM, etc.
- The usage of individual names shall be from the names of the directors and to be named in the Memorandum or Articles of Association. However, individual names can be considered if such names are from the names of immediate family members of the director or the promoter; for example, the names of children, father, wife, grandfather or grandmother. Proof of family relationship must be given. If the name of the company is from the individual name of a group of companies in existence, a consent letter must be obtained from the group of companies which have such individual names.
Words Prohibited by Virtue of the Direction of the Minister
- The name should not suggest any connection with the royal family or patronage including words like Royal, King, Queen, Prince, Princess, Crown, Regent, or Imperial.
- The name should not suggest any connection with a State or Federal government department, a statutory body, government agency, or municipality, including words like State, Federal, and National.
- The name should not suggest any connection with any political party, society, trade union, or building.
- The name should not suggest any connection with any ASEAN, Commonwealth or foreign government, or with the United Nations including words like ASEAN, UNESCO, NATO, EEC, OPC, etc.
- The names those are misleading as to the identity, nature, objects, or purpose of a company.
- The names including words like Bank, Banker, Banking, Bumiputra, Bureau, Chamber of Commerce and Industry, Chamber of Manufacturers, Chartered, College, Consumer, Council, Credit, Exchange, Executor, Fair Price, Finance, Foundation, Fund, Guarantee, Institute, Insurance, Investment, Leasing, Made in Malaysia, Prime, Registry, Treasury, Trust, Unit Trust, University, etc.
How to Select a Malaysia Company Name?
The SSM (Suruhanjaya Syarikat Malaysia) also known as the Companies Commission of Malaysia is the statutory body formed in Malaysia to regulate companies and businesses that are legally registered and operating in Malaysia. It is a company name generator in Malaysia. You can conduct a SSM company name search to check company name Malaysia at their official portal by following the below mentioned steps.
- Visit the SSM website www.ssm-einfo.my
- Click on icon that says “Register an e-Account Member”
- Fill in the e-Registration form by mentioning all the details and submit it
- You will receive a message “Please login now”
- Login with your username and password
- Once logged in successfully, click on the icon “>>search”
- Enter your desired Malaysia company name in the box “By Name”
- Voila! Malay company name list result from SSM will be displayed.
If your desired name has already been taken by someone else in the company name list in Malaysia, it will be listed down in a table. The registration number, company name, city and state of the registered company will be displayed. The search result will remain empty if your desired name has not yet been registered with SSM. This shows that no one else has been using the same desired name and you are good to go. And that is how you have to go about doing a Malaysia Company name search.
How to Register a Malaysia Company Name?
If an applicant or the owner of a company has justification to use the names or words contained in the aforesaid points for company registration in Malaysia, the applicant or the owner has to apply to the Minister through the Registrar of Companies, stating the reasons or justifications for using such names or words as part of the proposed name by the company, together with a payment of RM 150.
If your name complies with the dos and don’ts of the Malaysia Company name requirements, then you must visit the official SSM website to ensure availability and registrability of you business name. Next, you have to submit Form 13A with a fee of RM 30 to the Companies Commission in Malaysia (SSM). After which your business name will be approved.
Upon approval of name by SSM, the approved company name will be reserved for a period of three months. The completed registration documents are required to be submitted to SSM within the 3-month time for incorporation purposes.
There is more to this than the aforementioned list and it is highly recommended that you consider enlisting company secretarial services, due to complex and continuous processes in which many factors come into play. Just to be on the safer side and abide by the rules and regulations of the Ministry, an individual should look for a professional consultant to make things easier.
If you are one of the investors who want to invest in Malaysia, you can do so by establishing a company in the beautiful country. And if you need any help, we are at your service. We at Business Setup Worldwide can help you set up your company in Malaysia. For any queries or advice, you can contact us – we’d be happy to be of assistance.