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Latest Guide To Company Incorporation of Sdn Bhd In Malaysia

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This is the complete Malaysian guide for company incorporation with the SSM through the MyCoID portal or a company secretary to set up a Sdn Bhd online.
Sdn Bhd is the most commonly incorporated type of company among the 8 types of business entities available in Malaysia.
Company incorporation requirement has been simplified according to several key updates since the implementation of the Companies Act 2016.
Here’s how you can incorporate your company with the Companies Commission of Malaysia (SSM) as a Malaysian to start running your business in this country.
Starting a company on your own can be an overwhelming and tedious process. But Masta eases this process and we are with you every step you take when setting up a company.

How to Set Up a Company

Through our quick and easy online business registration, the application will only take you 10 minutes.

How to Register a Company

All businesses registered in Malaysia are required to go through the Companies Commission of Malaysia, which is the statutory body formed under an Act of Parliament that regulates the corporate bodies and business affairs in Malaysia.
The Companies Commission of Malaysia is known locally by the Malay variation of its name, which is Suruhanjaya Syarikat Malaysia, hence the commonly known SSM.

Eligibility to incorporate a Sdn Bhd company

It takes a minimum of 1 director and 1 shareholder to incorporate a company in Malaysia where the director and shareholder can be the same person.
You need to fulfil the following criteria to be a director of a company:
  • 18 years old and above
  • Residing in Malaysia
  • Not disqualified under Section 198 of the Companies Act 2016
It is important to understand the roles of directors and shareholders to ensure that you carry out your responsibilities and protect your rights in the company before incorporating a company.

The SSM Registration Process in Malaysia

A business may be registered with the SSM by using a personal name or a trade name. This depends on the preference of the individual who is registering the said business.
If the individual is registering a business using a personal name (for example, their own name that is registered on their identity card) they do not need to submit an application for a business name. Individuals who intend to register the business using a trade name must get prior approval of the proposed name from the Registrar of Business.
Once the name has been approved, the next steps of the SSM registration process would be as follows:
  • Individuals need to complete Business Registration Form A with details of the business name, commencement date of the business, principal place of the business, the address of the business branch (if any), information of the owners and partners, the type of business carried out and provide a copy of the Partnership Agreement (if any).
  • If there is more than one business owner involved, every owner and partner is required to sign the completed form.
  • The application form must be submitted over the counter or through the online SSM e-Lodgement services in the SSM’s website.
  • Documents that must be submitted along with the forms include a photocopy of the individual’s identity card, permits, licence or supporting letters for the type of business, approval of the supporting letter from the relevant agency if required by the Registrar of Business.

What Are the Requirements for SSM Registration in Malaysia?

To be able to successfully register a business, individuals must be:
  • A Malaysian citizen or a permanent resident of Malaysia.
  • 18 years of age and above.
  • Registration of the business must not be later than 30 days from the date of the business commencement.
  • The nature of the business must not contravene any laws or be likely to be used for unlawful purposes.
New business registrations are valid for a period of one year and do not exceed five years on each registration.
Individuals need to keep in mind that despite being registered with the SSM, licences, permits or approval letters from other relevant authorities that are needed for the business must be obtained by the individual on their own.
The two types of companies that can be incorporated under the Companies Act 2016 are:
  1. A company limited by shares
  2. An unlimited company

Information and documents to prepare

These are the important documents you should prepare in advance so the company incorporation process can be smooth without missing information:
  • Proposed company name(s)
  • Business nature and description
  • Business address and registered address
  • Information of directors and shareholders
  • Paid-up capital

Along with these 5 documents, you also need to prepare these 2 documents:
  • IC for identity verification purposes.
  • Authorization letter if your proposed company name contains controlled words or trademark.

Payment needed

The SSM charges an incorporation fee of RM1,010 (inclusive of tax).
There is an additional fee if you engage with a company secretary to incorporate the company on your behalf.

Company incorporation through the MyCoID portal

It is possible to incorporate your company on your own without going through a third party by going through the MyCoID portal.

1

Account registration on the MyCoID portal

Register an account on the MyCoID portal as an individual user.

2

Account activation at the SSM counter

Upon activating the account through email, you will receive another email with instructions to validate your registration at the nearest SSM counter.

3

Login credentials received through email

After the SSM has activated your account, you will receive an email to create login credentials on the MyCoID portal.

4

Proposed company name search

To get started with the company incorporation process, go to the Direct Incorporation Application on the MyCoID portal homepage to carry out the name search by keying in the proposed company name that you want.
You will not be able to proceed if the proposed company name is taken, reserved by other people or contains prohibited words.

5

Enter other information under name search

To incorporate a Sdn Bhd, the following information should be selected under name search:
  • Purpose: N – NEW INCORPORATION
  • Type: S – LIMITED BY SHARES
  • Company SubType: SDN. BHD.

6

Clarify your proposed company name in the Super Form

Next, you will be redirected to the Super Form where you will have to clarify the meaning behind the proposed company name.
If the proposed company name contains names of states, controlled words or trademark, you will have to attach an authorization letter from the respective authority or owner.

7

Business code selection and description

Select a business code that is related to your business, and provide the description together with the registered address and business address of the company.

8

Directors and shareholders information

By default, you are automatically listed as a director and shareholder of the company, but you can add directors and shareholders in the next step.
State whether you have employees in the company under the Information To Agency section.

9

Application submission

After reviewing the information on the preview page, submit the application and you will be redirected to the Transaction page.

10

Payment of incorporation fee

Pay the incorporation fee of RM1,010 (inclusive of tax) and get a transaction receipt.

11

Notice of Registration as proof of incorporation received through email

You will receive the Notice of Registration as proof of incorporation through email within 1 business day if your company has been approved by the SSM.
A Certificate of Incorporation can be purchased with a prescribed fee if it is required.
You will be notified through email if the application is queried by the SSM. The application can be edited and resubmitted again.

Extra

Within 30 days of receiving the Notice of Registration, a company secretary should be appointed.

Should I incorporate the company myself or get a company secretary to do it for me?

You can go through the company incorporation process, from creating a MyCoID account to receiving the Notice of Registration, without external help.
The SSM has all the necessary information regarding company incorporation on their website and their officers are helpful in answering questions that you might have.
However, there are several obstacles you may run into if you choose to incorporate your company by yourself:

1

Time and energy-consuming

It will take up a lot of time and energy to register a MyCoID account as you have to visit the SSM counter after activating your account through email for your identity validation.
You also need to go through the SSM guidelines on naming your company and figure out the right business nature your company falls under.
With a company secretary like Masta, you do not have to create a MyCoID account.
We can also advise you on selecting a company name and other information related to your company.

2

Lack of information about starting a company

Entrepreneurs starting their company for the first time go through a whole new learning process, and are faced with a lack of information on the internet.
You might have questions about deciding on the initial paid-up capital of the company, adding directors or shareholders later on, and mandatory compliance to follow.
A company secretary can clear up your doubts through a phone call or an in-person meeting.
It is advisable to seek professional consultation to make sure the company incorporation process is smooth.

3

Mandatory requirement to appoint a company secretary

It is a requirement for all Sdn Bhd companies to appoint a company secretary within 30 days of successful company incorporation.
Therefore, it is recommended to engage with a company secretary from the beginning of the company incorporation process to save yourself the hassle of validating your MyCoID account by yourself.
Company secretaries in Malaysia normally charge a service fee of between RM500 to RM2,000 for Malaysian directors and shareholders, exclusive of the SSM’s incorporation fee.

Company incorporation through Masta

You can incorporate your company with the SSM fully online through Masta. Here’s how it’s done.

1

Create a Masta account.

Create an account at Masta mobile app to protect your data and give you access to the information you have submitted.

2

Fill in and submit the incorporation form.

Provide information about your business and company, such as:
  • Proposed company name(s)
  • Business nature
  • Contact details
  • Paid-up capital
  • Directors and shareholders information

You can consult us if you are unsure of any information needed.

3

Make payment.

Masta charges an incorporation fee of RM2,000 inclusive of the SSM fee worth RM1,010.
Our monthly company secretary fee is RM99.90 that covers all your company secretarial needs.

4

Receive an email to verify your identity.

All directors and shareholders will receive an email to carry out e-KYC for identity verification purposes.
This is done by accessing the unique verification link sent to you and taking photos of your IC (front & back) and a selfie.
Once all directors and shareholders have verified their identity, the company secretary will review your incorporation form and advise accordingly if changes are needed.

5

Receive an email to sign S201 declaration and letter of incorporation.

All directors will receive an email to sign 2 documents electronically:
  • S201 declaration – to declare your eligibility as a director.
  • Letter of incorporation – to confirm that all information provided is accurate.

6

Wait for the SSM approval of your company incorporation.

Your company incorporation application is submitted to the SSM.
It usually takes 2 to 3 working days for your company to get incorporated, subject to the SSM approval.
You will receive the Notice of Registration and Certificate of Incorporation once your company is incorporated.

Incorporate your company today with Masta.

From company name check, appointment of directors, assignment of Company Secretary, submitting document to SSM, we will take care of everything so that you can just focus on your business.

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