Company Registration in Malaysia – For Foreigner
It is a known fact that Malaysia welcomes foreign investments. The strategic location, robust investment climate as well as the low operating costs is among the reasons that attract foreign investors. In Malaysia, a foreigner can setup a corporation with 100% foreign ownership.
The Company Registration Process for a Malaysian Foreign Owned Company
1. Statutory Requirements
According to Companies Act in 1965, it is a mandatory requirement that all Malaysian corporations to file annually with the Suruhanjaya Syarikat Malaysia (“SSM”). The annual filing includes the company’s annual return (which has to be updated during the company’s Annual General Meeting (“AGM”). After the update of annual return, the corporation has to file its annual return, a certificate listing the corporation’s shareholders, together with the Audited Financial Statements within a month after the AGM.
In general, a minimum of one shareholder is needed for all Malaysia corporations. As for directors and officers, it is a statutory requirement that the director must be of eighteen years old and is residing in Malaysia (he or she can be either a permanent resident, or a foreigner with a Resident Talent Pass (“RPT”), or a permanent resident (“PR”), or MM2H holder). On top of that, the director cannot be a bankruptcy, or a criminal (with convicted crime by at least five years). In Malaysia, a nominee resident director can be appointed for privacy purposes.
According to the Company Act, you will need to comply with the following if you are setting up a Sdn Bhd (Private Limited Company) in Malaysia:
- a) Must have a minimum of 1 director
- b) A minimum of 1 shareholder are required
It is a mandatory requirement that all corporations must have a secretary who must be a member of at least one of the Minister of Domestic Trade Cooperative and Consumerism’s prescribed professions, or licensed by the SSM.
2. Registration Fees
The Company registration fees is RM1,000 payable to SSM.
A. Business plan – have a business plan in mind. The business plan includes business type, which industry as well as marketing strategy.
B. Company name
b) Run a name check for the availability, below is the steps involved:
- i) Fill up and submit Form 13A CA (Request For Availability Of Name) to SSM; and
- ii) Pay RM30.00 as a fee for each name applied
c)Register the name with SSM to obtain approval from the Company Formation in Malaysia.
C. Registered office address
In Malaysia, every corporation must have a local registered office address.
D. Preparation of incorporation documents
The submission of Incorporation Documents to SSM must be done within the 3-month window from the approval date of the company’s name by SSM. Please note that a new application for a name search has to be done again if the incorporation documents are not submitted to SMM within 3 months.
F. Issuance of a Certificate of Registration
As one of the large economy bodies in Southeast Asia, Malaysia is always the favoured investment hotspot for foreign investors. While Malaysia offers the simple company registration process that benefits foreigners, Malaysia is also the good gateway for foreign investors to enter the nearby Southeast Asian markets.
If you are looking forward to setting up or expanding your business portfolio in Malaysia, you can contact us for more assistance. Meanwhile, you can visit our website to read up more about the company incorporation in Malaysia.