Sdn Bhd Secretary Fee

Thinking of starting an Sdn Bhd Company in Malaysia? That is a brilliant idea. Let me tell you why. Whether you are a local or foreign, Sdn Bhd is the most appropriate business entity. It is the local Private Limited Company. One of the requirements for an Sdn Bhd Company is hiring one or more company secretaries. (According to Companies Act 1965 section 139) Sdn Bhd Companies are easier to start up & also considered reliable.

In Malaysia, most small and medium-sized companies register as Sdn Bhd. It is also known as a Private Limited Company. Companies or businesses that register under this entity will carry the suffix "Sdn Bhd" after the company name. The initial start-up cost is higher than of a sole proprietorship company. But, Sdn Bhd companies have a better reputation in the corporate world of business.

Customers, shareholders and even financial institutions consider Sdn Bhd companies to be a reliable entity. An Sdn Bhd company secretary will attend to many tasks of the company at a fee. You may either hire a secretary by yourself or seek help from an external source.

A company secretary must be a permanent resident or citizen of Malaysia. He/she will carry off various tasks on behalf of the company. These are some of the tasks the company secretary will carry out for you.

Follow & apply the Companies Act of 1965 & provide legal advice
Writing minutes of board meetings & shareholder meetings.
Your secretary will attend meetings organized by your company. He/She will advise on secretarial matters file annual returns on behalf of you.
Organize Annual General Meetings
File and submit annual returns to SSM

It is the corporate secretary's responsibility to file Annual returns along with audited accounts to the SSM. The submission of documents must be done within 30 days after the AGM. It is a must for every company to hold an Annual General meeting with 18 months of incorporation.

Preparing statutory and other documents required
The company secretary will prepare and submit statutory returns to the company's commission of Malaysia.
Seeing to matters concerning the allotment of shares, employee rights, bonuses & dividends
Provide legal advice when necessary
Be in charge of company seals & chops

Who can be appointed as a secretary?

An individual must be 18 years or over to become a company secretary. He / She must be a citizen or permanent resident of Malaysia. And must hold a license under the Companies Commission of Malaysia. Also, the person should not have a criminal record (under section 130 (1) of the companies act) & must not be bankrupt.

The secretary must belong to one of the following government approved Institutes.

The MAICSA (Malaysia Association of the Institute of Chartered Secretaries and Administrators)
Malaysian Association of company secretaries
The Malaysian Institute of Accountants
Malaysian Association of Public Accountants
The Malaysia Bar
Sabah Law Association
The Advocates Association of Sarawak

Most small & medium companies do not see the necessity to hire a secretary full time. In these instances, they outsource secretarial services to attend to their corporate needs.

The following are fees applicable for a Company Secretary in an Sdn Bhd Company: (Rates may vary by the company & the work involved. This is meant to give you a basic idea.)

Incorporation (2 Directors, 2 Subscribers with authorized Capital of RM. 400,000) – RM2000

Monthly Fee

Dormant company (1year advance payment): RM50 / Retainer fee: RM.100
Semi-Active Company (6 months advance payment): RM100 / Retainer Fee: RM.150
Active Company (3 months in advance payment): RM.150 / Retainer Fee: RM.30

Meeting Charges: RM.200 per hour or part thereof

(Meetings include, Board meetings, meeting government associates, or Annual General Meeting)

Resolution preparation: RM.100
Annual Return filing: RM.150 per Annual Return
Form Certification: RM.2 per signature
Name Search: RM. 100 per name
Registered Office charges: RM. 15 per month
Company searches at the SSM
Preparation of Amendments: RM500
Letter of Certification from the secretary: RM150 per letter
Business consultancy and advisory: Min. RM300 or part thereof

There are some services which are free of charge:

Preparing memorandum & association for a new company
Informing Directors about new updates of government
Preparation of documents are printing
Monitoring company seal & chop

The Directors of the company may replace the company secretary if the individual doesn't carry out tasks properly. But the position must not be vacant for too long. A new secretary must be appointed within 30 working days.

In conclusion, a company secretary is different from your normal employee. A company secretary is an officer of your company. He/she sees that the company runs smoothly and is up to date with the requirement of the SSM. The secretary carries a huge responsibility in a company. The board of Directors, chairmen all look up to the secretary for guidance. In short, the secretary is your company guardian. Thus, the person you choose to be your secretary must be qualified and experienced.

FAQ:

What are the eligibility criteria to be a company secretary?

A company secretary must possess following eligibility:

Minimum age must be above 18
-Must be a permanent citizen of Malaysia
Must hold a license under the Companies Commission of Malaysia.
Must not have a criminal record (under section 130 (1) of the companies act) & must not be bankrupt.
Must belong to recommended government-approved Institutes.

What would be the secretarial fee for incorporating a company?

The secretarial charge for company incorporation is RM2000. This charge however, may varies from one company to the other.

Is there any additional duties a secretary carries out for free?

Yes, typically a secretary carries out free tasks like: