Understanding the Incorporation Timetable in Malaysia
Do you want to start your own business in Malaysia but you just don’t know how? Do you have some questions like what are the things that you need in order to have a business name and a legal identity? Maybe you want to know if you can have full business ownership in Malaysia? If you’re eager to know the answers to these incorporation timetable questions, then you’ve come to the right place. It’s a wise decision to know what you’re getting into.
Malaysia is one of the world’s friendliest when it comes to establishing a business. The incorporation of a business is easy with just a few simple steps to follow. The Incorporation Package in Malaysia would depend on the kind of business identity you’re going to apply for. You should familiarize yourself with these different entities.
What Business Entities Can Be Incorporated by a Foreigner in Malaysia?
A business entity is your entitlement when it comes to operating your own business in a particular business setting. In Malaysia, there are 6 different business entities namely:
- Sole proprietorship
- Limited Liability Partnership
- Private Limited / Sendirian Berhand (Sdn Bhd)
- Labuan International Company (LIC)
- Representative / Regional Office
Not all business entities are available for foreigners. Items 1 to 3 on the list above are available only to Malaysians and items 4 to 6 are the ones available to foreigners. This is designed by the Malaysian Government in order to balance the ownership in Malaysia and to make sure that there will always be something for the Malaysians. Foreigners should not be disheartened by this.
What matters is that they can still engage in business no matter what it is and earn a fortune out of it. Not only that, as a foreign businessman in Malaysia, but you also get to stay longer with your Business Visa and explore the entire country.
Steps in Incorporating a Company in Malaysia and How Much Time Would It Take
Incorporation is the process of giving business identity to a company that is recognized by the government. With incorporation, you get the privilege and protection the country is giving to all business companies in Malaysia. The steps in incorporating are pretty easy but each step takes time to happen. They are the following with its corresponding timeline:
Name Search and Application
This would take 1 day to secure. What you need to do in this step is think of 3 potential names for your company and write this down on a piece of paper and go and submit it to the Companies Commission of Malaysia, also known as Suruhanjaya Syarikat Malaysia (SSM). Their address is at No. 7 Jalan Stesen Sentral 5.
The SSM would then look at their database if this name is not yet taken. If it is available, the one you wrote in a piece of paper is approved, the first on the list being the priority, and you have to pay for their new registration fee of 30 Malaysian Ringgit. On the other hand, if you prefer to apply for a business name online, especially when you’re abroad, you can do that as well.
Preparing Incorporation Documents
This would take only an hour or less once you have the papers that you primarily need for incorporation. You should have secured these prior to your Name Search and Application. The papers that you need are the following:
- Memorandum of Association
- Articles of Association
- Statutory Declaration by a director before appointment
- Declaration of Compliance made by the Company Secretary
- Original Version of Form 13A
- A copy of the letter from SSM stating the approval of company name
Filling and Lodging the Incorporation Documents
This would take 3 to 5 working days. After the successful registration of your company name, you have 3 months to submit all the incorporation documents. Failing to do so would require you again to register a new company name.
Issuance of Certificate of Incorporation by SSM
This would take 5 to 10 working days. Once you have submitted your incorporation documents to SSM, they will issue a Certificate of Issuance. The company has to form its First Board of Directors. Their role will be important as they will become the signatories to the statutory forms to be submitted to the SSM. These statutory forms can be generated within 1 to 2 working days after the first convention of the Board of Directors.
To summarize the discussion presented above, here’s a small table where you can see clearly each step in the incorporation process and how much time it would take approximately :
|Steps in Incorporating a Company in Malaysia||Estimated time to accomplish this particular step|
|Name Search and Application||1 Day|
|Preparing Incorporation Documents||An hour (It is assumed that you have already processed these papers even before the application for incorporation)|
|Filling and lodging the Incorporation Documents||3-5 Days|
|Issuance of Certificate of Incorporation by SSM||5-10 Days|
|TOTAL NO. OF DAYS:||9-16 Days|
If you think incorporating a business in Malaysia is still difficult, don’t worry. We at the 3E Accounting services for Incorporation are happy to help you. We will help you in incorporating your business step by step and we will provide you with information on the best Incorporation Package in Malaysia.