Company Formation and Registration in Malaysia

Malaysia is a developing country. The economic position of Malaysia being kept constant for long time that is better than many Asian countries. Registration of a new company in Malaysia is done by Suruhanjaya Syarikat Malaysia (SSM) or known as the Companies Commission of Malaysia under the provision of Companies Act. The foreign investor can have 100% ownership in specific industries as dictated by the government.

List of industries in which Malaysian government is encouraging Foreign Investment are:

• Education
• Banking and Finance
• Tourism Outbound and Ticketing
• Agriculture

Type of business for which foreigners are not permitted in Malaysia:

• Market research and public opinion polling services;
• Management consulting services;
• Supporting services for road transport;
• Building Cleaning services etc;

Type of company set up in Malaysia:

Limited Liability Company Registration in Malaysia: The investor can set up

Limited Liability Company in two type’s i.e

Private Limited Company which can be identified through “Sdn. Bhd” which is appearing together with the company’s name. Minimum two and maximum fifty members are required in setting up this type of business. It prohibits invitation to public to subscribe to any of its shares.

Public Limited Company which can be identified through Berhad’ or ‘Bhd’ appearing together with the company’s name. Minimum two members are required. Its shares are offered to the public for fixed periods.

There are three (3) types of limited companies in Malaysia:

Limited by Shares: Liability of members’ contribution is limited to the amount specified on their unpaid shares.

Limited by guarantee: Members’ liability is limited to the amount which they ‘guarantee’ or undertake during winding up and is specified in the Memorandum, agreed and signed by all members.

Unlimited Companies: They are similar to sole proprietorship and partnership business entities but the difference is that they have a special articles of association and are free to return capital to its members’.

1. Sole proprietorship: This type of entity is owned solely by one individual with unlimited liability.

2.Partnership: It is a type of joint-entity holder with two or more persons to carry out a legal business in Malaysia. It must comprise of at least two and maximum twenty members. Partners are bounded by unlimited liability.

3. Foreign Companies: This type of entity is equivalent to a foreign branch in Malaysia. Branch office is registered as an extension of the parent company and is not a separate legal entity. Foreign branch is not allowed to carry out trade related businesses, be it retail or wholesale. The liabilities of a branch office extend to its parent company.

4. Limited Liability Partnership: This type of entity is a hybrid between a private limited company and partnership. It is body corporate and has a separate legal entity from its partners.

Procedure for company registration in Malaysia:

1. First step is to check the availability of name
2. If the name has been approved, then file document of incorporation within three months from the date of the approval of name with SSM;
3. Documents required to be submitted to SSM are explained below:
4. Memorandum and Article of Association
5. Statuary Declaration by a Director or Promoter before Appointment
6. Declaration of Compliance
7. Other additional documents as required
8. If SSM is satisfied about the compliance of procedure and payment of prescribed fees, issued a certificate of incorporation.

For further information mail us on info@enterslice.com