Top 8 Things You Need To Know If You Are Planning To Incorporate A Malaysian Company Sdn Bhd
1. All foreigners can now register a company (limited by shares-Sdn Bhd) in Malaysia with 100% foreign equity depends on the nature of business.
2. However, not all industries and businesses allow 100% ownership by foreigners. There are certain special industries which may require local Malaysians’ participation, according to the guidelines given by the relevant Government Ministries.
Below are few examples of these special sectors that required Industry License to operate:
* Education
* Petroleum, Oil and Gas
* Banking and Finance
* Tourism Outbound and Ticketing
* Agriculture
The above list may vary from time to time, according to the directive of the Malaysian Government on its economic scenario. With effective of 22 April 2009, Malaysia had further liberalised Various Services Sectors with no equity capped for foreigners’ ownership. However, there are still many services, business and industries and jobs foreigners for not allowed.
3. Generally, there are 3 main structures for Malaysian Company Sdn Bhd registration based on the type of venture to qualify for the work permit application:
A. 100% Foreign Owned – minimum paid up capital of RM500,000 for advisory and consultancy businesses and minimum paid up capital of RM1 million for import, export, restaurant and trading businesses. The business concept has to be unique, bring benefit to the Malaysia’s economy as well as employment for the trade license to be approved under the 100% foreign owned structure.
B. Joint Venture with Malaysian partner (minimum 50% control) – minimum paid up capital of RM350,000 with an authorized capital of RM500,000.
4. Steps to Incorporate a Company in Malaysia
Steps involved when we assist you to get started on incorporating Malaysian Company Sdn Bhd:
i. Discuss and define the scope of business activities if you can have a 100% foreign owned company
ii. Name your directors and shareholders
iii. Propose 3 names and search to confirm availability
iv. Upon confirmation of the name selected, prepare company documents accordingly and list the directors and shareholders
v. Incorporation documents need to be sent for approval by the Commissioner Companies of Malaysia
vi. Once they are approved, your company will be issued a Registration Certificate (Form 9)
5. The basic requirements for incorporating Malaysian Company Sdn Bhd (Private Limited), under the Company Act 2016, is as follows:
* Minimum 1 director – can be individual or corporate
* Minimum 1 shareholder- can be individual or coprorate
* Decide on ownership – is it joint venture with Malaysians or 100% foreign owned? This will affect the paid-up capital needed for different categories.
Your Malaysian company will have its name ending with “Sdn Bhd”, which means “Private Limited” in the Malay language.
For example, if your chosen name is Corporate Solutions, then your Malaysian company official name will be “Corporate Solutions Sdn Bhd”.
6. You are required to indicate your company registration number in all your official documents, correspondences and your business cards. This number can be found in your Company Registration certificate (Form 9).
7. Although this designation is in Malay language, all company documents filed with the CCM (Companies Commission of Malaysia) is in English. Incorporating Malaysian Company Sdn Bhd
8. 2 common queries raised :
Query 1) Is there any minimum paid up capital, requirements for opening bank accounts ?
Answer: No minimum requirement.
Query 2) Is there any restriction on foreign authorized signatories ?
Answer: For foreign authorised bank signatory, he must hold an Employment Pass in Malaysia. To apply for an Employment Pass, must increase paid up capital to RM500,000.
Corporate BackOffice has a Corporate Secretarial office in Kuala Lumpur. We are glad to assist you should you need to incorporate a company in Malaysia.
Contact call our direct line at +65 6385 1011 or mobile at +65 9088 0669 for Enquiry.
