Company Registration Procedure in Malaysia as a Foreigner

Company Registration Procedure in Malaysia as a Foreigner

You can register a company in Malaysia with 100% ownership as a foreigner. It is called sdn bhd. In order to have full foreign ownership, the company must be in the industry specified by the government.

Below are some of the industries that the Malaysian government is trying to encourage foreign investment.

  • Education
  • Petroleum, oil, and gas
  • Banking and Financing
  • Outbound tours and tickets
  • Agriculture

The list will change according to Malaysia’s economic needs.

Foreign-Owned Company Process in Malaysian

There are many challenges to registering a foreign company in Malaysia, so don’t expect the process to be easy. Here are some of the steps involved.

  1. A conversation about the type of business you plan to manage.
  2. Identification of corporate shareholders and managers.
  3. Three possible names that you would like your organization to call. Names will be checked for availability.
  4. Prepare documentation with the organization’s name, shareholders and managers.
  5. The article of the article has been submitted to the Government of Malaysia.
  6. Issued a registration certificate

According to Company Law 1965, you will need the following to form the sdn bhd (Private Limited Company) of Malaysia:

  • At least 2 directors
  • At least 2 shareholders
  • The decision as to ownership. Do you want to limit the type of business that is 100% company-owned? Or do you want more flexibility in the products and services you sell by being part of a Malaysian-owned company?

The following section is related to Malaysia Incorporation in general, regardless of foreign or local ownership.

Introduction of Malaysia Company

Malaysia has been providing companies to people around the world since when its company law came into force. Malaysian corporations enjoy the same rights and opportunities that other international companies enjoy around the world.

Benefits of Malaysia Company

Whether it’s an entire company or a limited company, the owners of Malaysia companies share the same benefits:

  • Strategically located in Asia.
  • Fewer start-up costs than Singapore and other Asian countries.
  • The average monthly office rent for M2 per Malaysian is as low as $ 17 compared to Singapore (and other Asian countries).
  • The average wage is $ 2.31 USD per hour, which is much lower than Singapore ($ 3.24 USD).
  • Malaysia does not have 68 double tax deals with other countries due to double taxation. This means that Malaysia Company can benefit from doing business in other countries without paying duty.
  • There is no holding tax for dividends payable outside Malaysia.
  • There are no restrictions on Malaysian corporations regarding payment of capital, profits, dividends and royalties.
  • There are incentives to encourage trade and capital investment in Malaysia.

The company registration process in Malaysia

Malaysia enacted its company law in 1965. The Malaysian government company, known as SSM, has to file a company every year.

The filing includes the company’s annual return, which must be updated at the company’s annual general meeting. Upon updating, the corporation must, along with its annual return, issue a certificate listing the shareholders of the company, signed by a director or signed by the corporation’s director or secretary. These documents must be filed together with the audited financial statements within one month of the completion of the AGM.

The name of the Malaysian company

Before forming a company, owners must submit a unique company name that is not identical to the existing registered company name. When the move is completed, the company must register with the government’s registration system to authorize the formation of the company in Malaysia.

In Malaysia, it is mandatory for any company to search online and store a name.

The Secretary of the Company must prepare a document of incorporation after the approval of the application by the Malaysian Agency for the protection of the company name.

Office Address and Local Agent in Malaysia

Each company must have a local office address and a local registered agent. Registered office in Malaysia where all formal communications and notices must be addressed. It is a common practice in Malaysia to have a secretarial office as a registered office.

The agency’s individual office address can be located anywhere in the world.

Shareholder

All Malaysian companies need at least one shareholder.

Directors and officers

Malaysian companies must have at least one director who is at least eighteen years old and lives in Malaysia. This director could not be declared bankrupt or convicted of at least five years of punishable offense. The director may be a permanent resident or foreigner with a Residential Talent Pass (RPT), Permanent Resident (PR), or MM2H holder. A designated residential director may also be appointed for privacy.

The Secretary of Companies must be a Secretary to be a member of at least one of the government’s assigned occupations or be licensed by SSM.

Taxes in Malaysia

Businesses must register for Goods and Services Tax (GST) if they meet certain requirements. Companies do not need to register with GST if their annual business exceeds RM500000.

Annual payment

Businesses pay RM1000 annual fee to SSM for registration

Public Records

Businesses are kept confidential through the appointment of appointed directors and shareholders.

Accounting and monitoring requirements

Firms must select a fiscal year the initial fiscal year may begin at any time within eighteen months of inclusion. Businesses need to keep track of their income and expenses and maintain general accounting, which is maintenance and updating.

Each company must keep an annual report. The annual accounts shall be audited by a Malaysian auditor appointed by the Agency. The audited accounts must also be prepared for the annual general meeting so that the report can be approved by the shareholders. Once this process is completed, the audited report should be submitted to the SSM on the annual accounts of the companies.

Annual General Meeting

Annual meetings are needed to appoint executives (if vacancies are available), and for tax and accounting purposes.

Within last six months of a financial year, an annual general meeting (AGM) has to be conducted. For new companies, the meeting must be held within 18 months of the date of incorporation. During the meeting, the audit report must be approved by the company’s shareholders.

Expected time of a company

Most companies estimate that the entire submission process for registration requires about five to ten days from signing the documents.

However, completion times may vary depending on the accuracy and completeness of the recorded installation documentation. The availability of online systems for business systems in Malaysia may also be delayed.

Shelf Company

Shelf companies are available in Malaysia for faster business management.

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