Published November 24, 2016 · Updated October 9, 2026
What Makes a Company Name Unacceptable or Controlled in Malaysia?
Could a proposed company name be refused before the incorporation process even begins?
In this blog, we discuss SSM refusals, approval words, Sdn. Bhd. and PLT suffixes, and how to reduce rejection risk.
Under the Companies Act 2016, some words that you can't use in your new company name require approval first. A refused name is not just an inconvenience; each fresh reservation with the Companies Commission of Malaysia (SSM) costs RM50 for a 30-day hold and stalls the entire incorporation.
Day-to-day control of company naming sits with SSM under the Companies Act 2016. The Registrar will not register a name that is identical to an existing company's name. The Registrar also rejects names that closely resemble it. Misleading or undesirable names are also refused.
According to SSM's naming guidance, some wording is controlled rather than automatically banned. This covers wording that suggests a connection with royal institutions, government, the nation or a regulated industry. Words in the Minister’s Direction are not ordinary controlled words: Royal terms are considered only under SSM’s limited exceptions, and otherwise, like other directed names, need an appeal to the Minister through the Registrar with the RM300 fee; authority-controlled words require consent or supporting documents.
The distinction matters in practice. Outright prohibitions lead to immediate refusal. Controlled words require an approval route. Many founders do not know what evidence to prepare.
Which Names Are Likely to Be Rejected at the Availability Stage?
Names that are unacceptable, identical to an existing or reserved name, or materially misleading are unlikely to pass SSM’s availability assessment.
The first availability test is whether the proposed core name can be accepted under section 26 of the Companies Act 2016 and SSM’s current naming guidance. A consent letter does not turn an identical, undesirable or misleading name into an available one, and a word that can't be used in a new company name stays controlled unless the Minister approves it.
Applications usually need a different proposed name where the issue is:
- Identity with an existing or reserved name
- Undesirable or offensive wording
- A misleading implication about the company, its activities or status
- A similarity risk involving another party’s trademark or brand
The subsections below explain the practical response to each issue.
1. Names identical or too similar to existing companies
SSM does not treat a name as distinct merely because of a different entity suffix, letter case, spacing, punctuation, plural form or root-word variation. Certain general expressions are also disregarded or assessed under the name-identity rules. Choose a genuinely distinctive core name and obtain any consent letter that SSM requires for a permitted related-name application.
2. Undesirable or offensive words
Names that are obscene, contrary to public policy, likely to offend a community or religion, or otherwise unacceptable can be rejected. There is no standard supporting document that cures this issue; the safer response is to choose neutral, professional wording.
3. Names that mislead the public
A name must not misrepresent the company’s identity, nature, objects or purpose. Avoid wording that suggests government support, a regulated status, professional entitlement or a business scope that the company cannot substantiate.
4. Names too close to well-known trademarks
SSM name availability is not a trade mark clearance. Before committing to a brand, search the MyIPO trade mark database and consider whether the proposed name could confuse customers or conflict with another party’s protected mark.
Which Words Need Approval or Supporting Evidence First?
A name subject to a Ministerial direction may be appealed after a Registrar decision, while other controlled terms need consent or eligibility evidence from the relevant authority.
Controlled wording is not a single category, and it should not be treated as automatic approval or automatic refusal. Start with the current SSM Guidelines on Company Names, the Gazette notification and the relevant authority’s requirements.
Minister-directed names are names that the Minister has directed the Registrar not to accept under section 26(1)(d) — these are words that can't be used in a new company name unless the Minister approves an appeal. If the Registrar refuses a proposed name, an aggrieved applicant may appeal to the Minister through the Registrar within 30 days. The current appeal fee is RM300, and SSM requires a written justification, the rejection notification and any relevant supporting documents.
Other controlled wording is handled through referral authorities. This commonly arises where a name suggests a regulated financial, education, health, professional, aviation, property or other regulated activity. The applicant should obtain the required consent letter, certificate of eligibility or supporting document before submitting the name search in MyCoID.
Royal, government, national and international-status wording also needs particular care because it can imply an official connection or patronage. Do not rely on an old list of examples: the current Gazette, SSM guidance and the relevant authority’s requirements determine the route for a particular application.
The table below is a planning guide rather than a definitive list. SSM and the relevant authority assess the proposed name, supporting evidence and proposed activities on their facts.
How Do Sdn. Bhd., Bhd. and PLT Suffixes Work?
Companies must use the statutory ending for their type, and a different ending does not cure an identical or misleading core name.
Under section 25 of the Companies Act 2016, a private company must end with Sendirian Berhad or Sdn. Bhd., while a public company must end with Berhad or Bhd. An unlimited company uses Sendirian or Sdn.
A PLT is a different legal vehicle and must use Perkongsian Liabiliti Terhad or PLT rather than a company ending. Adding Sdn. Bhd., Bhd., PLT or a similar general expression does not make an otherwise identical core name distinctive for name-availability purposes.
Choose the entity type before finalising the proposed name. A company’s statutory ending identifies its legal form; it should not be used as a branding workaround.
Required Name Suffixes by Entity Type
| Entity type | Required suffix | Key rule |
|---|---|---|
| Private company limited by shares | Sdn. Bhd. (Sendirian Berhad) | Standard form for local and foreign-owned SMEs |
| Public company | Bhd. (Berhad) | May offer shares to the public |
| Limited liability partnership | PLT (Perkongsian Liabiliti Terhad) | Cannot use Sdn. Bhd. or Berhad |
| Foreign company (branch) | Retains its home-country name | Registered in Malaysia with its original corporate name |
How Can You Reduce the Risk of a Name Rejection?
A distinctive core name, a MyIPO trademark search and the right evidence for controlled wording give an application the best chance of progressing smoothly.
Before filing, we help clients screen candidate names through four practical checks:
- Name-identity review: compare the distinctive core words against existing and reserved names. General expressions, punctuation and a different legal ending may not make a name sufficiently distinct.
- Trademark review: search the MyIPO IP Online Search and Filing system for potentially conflicting marks. Consider whether the proposed branding could confuse customers even if an SSM name reservation is available.
- Controlled-word review: identify whether the wording is subject to a Ministerial direction, a referral authority or a certificate-of-eligibility requirement. Follow the approval route explained above rather than assuming that every restricted term needs the same treatment.
- Contingency planning: prepare two or three genuinely different candidate names so a refusal does not restart the incorporation timeline.
A concise, distinctive name that accurately reflects the proposed business is usually easier to support. Avoid wording that overstates scale, regulated status, government affiliation or professional entitlement. Evidence can support a controlled-word application, but it does not remove the separate need for the name to be available and non-misleading.
Name Categories, Concerns and Safer Alternatives
| Name category | Typical examples | Main concern | Approval route or evidence | Safer alternative |
|---|---|---|---|---|
| Royal and palace words | Royal, DiRaja, Raja, Sultan | Suggests a connection to royal institutions | Royal terms are considered only under SSM’s limited exceptions; otherwise, the applicant may appeal to the Minister through the Registrar with justification and the RM300 appeal fee. | A neutral brand word or the founder's name |
| Government and national words | Malaysia, National, Federal, Bumiputera | Implies official or national-level standing | For National, Federal and Bumiputra terms, submit a formal appeal to the Minister through the Registrar with justification and the RM300 appeal fee; Malaysia at the beginning of a name requires Federal or State Government interest or the relevant party’s consent. | A locality-based or coined name without official wording |
| Regulated-sector words | Bank, Insurance, Takaful, Finance, University | Implies a licensed activity the company may not hold | For BNM-controlled terms such as Bank, Insurance, Takaful and Finance, attach the required supporting documents from Bank Negara Malaysia; University is a Minister-directed word and requires an appeal to the Minister through the Registrar. | Lawful neutral wording such as Advisory or Consulting |
| Scale and structure words | Holdings, Group, International, Global | Overstates the company's actual size or reach | Holding and Group are treated as non-distinguishing ending words in the name-identity assessment and may be considered for a related company with a consent letter from the existing company; SSM does not set a general subsidiaries-or-overseas-operations test for International or Global. | Drop the word until the corporate structure supports it |
| Names similar to famous brands | Wordings close to well-known marks | Trademark conflict and public confusion | A consent letter from the trademark owner where the word is a MyIPO-registered mark controlled with SSM; otherwise refusal is likely | A distinctive coined name unique to the business |
Conclusion
The practical rule is to replace unavailable names and to follow the stated evidence or appeal route for controlled wording before applying.
The Companies Act 2016 framework separates controlled wording into distinct approval routes; some words can't be used in a new company name unless approved by the Minister. Offensive, misleading or confusingly similar names will still be refused. The main approval routes are:
- Royal terms may be considered under SSM’s limited exceptions or by a Minister appeal with the RM300 fee.
- Malaysia at the start of a name needs Federal or State Government interest or relevant-party consent.
- National, Federal and Bumiputera terms may require a Minister appeal.
- Regulated-sector words require the referral authority’s consent or eligibility documents.
- Scale words like International or Global have no general approval test. The safer course is to remove them or choose a distinctive alternative until the structure supports them.
Consent or an appeal does not guarantee approval: SSM and the relevant authority still assess each application on its own facts.
This article was first published on November 24, 2016 and has been fully rewritten to reflect the Companies Act 2016 and current SSM naming guidance as at October 2026.
As a Corporate Services Provider, 3E Accounting Malaysia screens candidate names against SSM records and trademark risks. We prepare supporting documents. We manage the reservation and incorporation end to end. You can also request a free name check before committing to a name.
For further reading:
- Overview of Company Name Search in Malaysia for registry search techniques
- MIDA Strengthens Cooperation with Jetro for market-entry developments
- Malaysia Sdn Bhd Accounting Services 2026: How Monthly Bookkeeping, Tax Filing and Audit Packages Are Priced (RM Guide) for running costs
Start With a Company-Name Check
Our Corporate Services Provider team can review your shortlist for availability, controlled-word evidence and trademark-risk issues before you file.
Frequently Asked Questions
Yes, but the route depends on the category. A term controlled by a referral authority may need its consent letter, certificate of eligibility or other evidence before filing. If the Registrar refuses a name affected by a Ministerial direction, an aggrieved applicant may appeal under section 27 within 30 days. An identical, undesirable or materially misleading name normally needs to be changed.
Malaysia is one of the general expressions SSM may disregard when assessing whether two names are identical. Adding it may therefore not make a proposed name distinct. Where the overall wording implies official affiliation or falls within a controlled category, further evidence or a different name may be required.
No. An LLP must use the PLT (Perkongsian Liabiliti Terhad) suffix. The Sdn. Bhd. suffix is reserved for private companies limited by shares.
Under SSM’s current fee table, a company-name reservation costs RM50 for every 30 days or part of a 30-day period, up to a maximum reservation period of 180 days.
Read the rejection notification and identify whether the issue is availability, controlled wording or missing evidence. Submit a genuinely different name when the core wording is unavailable. If the Registrar has refused the name, an aggrieved applicant may appeal to the Minister through the Registrar within 30 days with written justification, the required documents and the RM300 fee. Also check MyIPO for trademark risk before filing again.
Abigail Yu
Director
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
