If you are looking to start a new company and have decided to invest in Malaysia then you have made a wise decision. Over the past decade or so, the economy of Malaysia has seen a stellar rise and it is fast becoming one of the most profitable countries to do business in inside Asia.
No matter what kind of business it is that you are planning to do in Malaysia, you are by law required to register your company. Many entrepreneurs looking to start their business in Malaysia often struggle with the whole registration process. As a result, this article will try to make the process and the requirements for registering a company in Malaysia a bit easier for you.
Malaysians can register their companies with the help of the Companies Commission of Malaysia. It does not matter what kind of business it is, they can register a sole proprietorship, partnership business, and private limited and even public limited companies. However, if you are a foreigner looking to invest in Malaysia and open up your own company then you are not allowed to register sole proprietorship and partnership business.
In Malaysia, there are mainly two types of business categories that can determine what the requirements of registration are for your company. The first one is 100% foreign owned where the minimum paid-up capital should be around RM 500,000 for advisory or businesses which involve consultancy. If you are looking to get into the import and export business then you need a paid up capital of RM 1 million. The same digit applies for opening a restaurant or any sort of trading business.
If your business is a joint venture with a 50% ownership with a Malaysian partner then you need a minimum paid up capital of RM 350,000 alongside an authorized capital which should stand at RM 500,000.
All companies, whether local or foreign are registered with the aid of Companies Commission of Malaysia. Over there the first step of registering a company is to name your firm. You need to adhere to the rules of naming for your company. They cannot contain any of the restricted words as provided by the CCM. Whatever you finalize on your company name, it should end with the term “Sdn Bhd”.
These are Malayan terms or private limited. For instance, if you name your company “Green Light Solutions” then it should be named as “Green Light Solutions Sdn Bhd”. Once registered, you will be provided with a company registration number which should be present in all the documents of your company. These include your official documents, correspondences as well as your business cards. All the forms and instructions in the Companies Commission of Malaysia are in English so if you are a foreigner you do not have to worry about understanding the Malayan language.
Once you have cleared out the naming rights of your company you will be required to provide certain documents and information about the company. The first thing you need to provide is the names of all your directors and shareholders. Keep in mind that according to the Company Act of 1965, any Malaysian Company Sdn Bhd needs to have at least two directors and a minimum of 2 different shareholders. Failure to show this will result in your registration application being rejected by the Companies Commission of Malaysia.
The name of your company along with the registration number and the name of the directors will need to be sent directly to the Commissioner of the Companies Commission of Malaysia. Once all your documents of Incorporation are sent, they will be processed after which you shall be issued the all-important Registration Certificate. Keep in mind that during the registration period you will be asked to show a lot of documents which include a written statement of your intent of business. This is a must for owners who have a 100% share of the company. You will be required by law to explain what kind of activities it is that you are planning to perform within your company. Alongside that, you need to provide other materials such as requirement of how to register a company in Malaysia are the Memorandum and Articles of Associations, the share certificates, common seal and other related materials.
The entire process of registering a company in Malaysia is very easy and simple. As long as you can show all the required documents and fill up the application properly, you should not face any sort of problems to register the company. The only problem that may arise and lead to your rejection is the naming of your business. But even then it is not a big concern since you can always check the availability of the name of your company so it shouldn’t slow down your registration process any longer. Once everything is done, it is just a matter of