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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.
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.
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.
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.)
(Meetings include, Board meetings, meeting government associates, or Annual General Meeting)
There are some services which are free of charge:
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.
What are the eligibility criteria to be a company secretary?
A company secretary must possess following eligibility:
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: