Why Set Up a Business in Malaysia?
- Malaysia offers state-of-the-art infrastructure and amenities for business development at low start-up costs compared to Singapore and many other Asian countries.
- Malaysia has over 60 double taxation treaties with other countries, implying that firms can benefit from doing business in these places without being taxed by both countries.
- The Malaysian government incentivizes and encourage business formation and foreign investment. There are also free zones (export processing zones) in Malaysia providing for tax exemptions, full repatriation of profits, and 100% foreign ownership.
Prerequisites for Company Registration in Malaysia
To set up a company in Malaysia, the following basic requirements must be met:
- Minimum 2 shareholders and 2 directors
- A minimum of 1 director who should be a local Malaysian resident
- A minimum share capital of MYR 100,000
- A registered office address
- A company secretary (residing in Malaysia if the person is an individual, or having its registered office or place of business in Malaysia if it is a corporate body)
Process of Registering a Company in Malaysia
Company registration in Malaysia takes place in accordance with the Registration of Businesses Act (ROBA), 1956. A company in Malaysia can be incorporated as follows:
- Decide upon a name for the company, and search to confirm its availability. To check the availability of a name for the proposed company, one needs to refer to government gazette. If unique, a name can be reserved by filing a name availability application:
- File the name application form with the proposed name to the Companies Commission of Malaysia or Suruhanjaya Syarikat Malaysia (SSM)
- Make payment of prescribed fee for the name applied
SSM will check and process the application, and if the filed proposed name is available, it is approved by SSM. The name shall be reserved for 3 months from the date of approval.
- Submit the company incorporation documents to SSM within 3 months from the date of approval of the company’s name. Failure to do so shall require the applicant to submit a fresh application for a name search to SSM.
Documents Required for Company Registration in Malaysia
Company registration in Malaysia requires documents, including but not limited to:
- Duly filled and signed application form
- Original copies of the Memorandum and Articles of Association (MAA)
- Shareholding pattern of each shareholder
- Original copy of Declaration of Compliance
- Original copy of Statutory Declaration by the director
- Copies of passport of shareholders, directors and company secretary