Malaysia is an emerging diversified economy, and also a prominent diversified emerging industrial country in Asia and an emerging market economy in the world. Malaysia has a good economic development, and its economic and trade cooperation with China has continued to develop steadily. It is China's tenth largest trading partner in the world.
The Malaysian Companies Registration Committee is the sole authority and registration body for company registration in Malaysia. All companies to be registered must submit their registration applications to the Companies Registration Committee and wait for review and approval.
Generally speaking, a company can start business as soon as it is successfully registered. However, if the industry the company is engaged in requires approval from other government regulatory departments, it must obtain a license or permit from the relevant government regulatory department before it can start business. Such as the pharmaceutical industry, tourism industry, and catering industry.
Advantages of Malaysia Company
Market potential
Malaysia is a Commonwealth country and the most economically influential country among the ten ASEAN countries. It also ranks among the top in terms of product awareness and market behavior among the 54 Muslim countries in the world. It is known for its large number of Muslim customers and merchants from all over the world.
Trade Physics Center
Malaysia has a superior geographical location and is a world-class maritime and shipping transportation hub, which can expand its business territory to various Southeast Asian countries.
The establishment of diplomatic and commercial relations between the Malay Archipelago and China can also be traced back at least several centuries.
Belt and Road Initiative
The Belt and Road Initiative has brought many new cooperation opportunities to China and Malaysia.
On May 23, 2020, the General Administration of Customs of China released the table of the total value of imports and exports by country (region) in April. The data showed that Vietnam, Malaysia and Russia have occupied the top three positions in China's trade volume with countries along the "Belt and Road" for four consecutive months.
Malaysia company registration preparation
1. Preliminary consultation
RSM Malaysia CPAs (hereinafter referred to as “the Firm”) will discuss with you the requirements for the incorporation of a new company and provide a corporate structure for the new company as required. During the consultation, the Firm will list the registration requirements for the relevant business licenses for the client and provide advice based on your needs and objectives.
2. Company name registration
List 3 company names, 1 as the main name and 2 as alternatives. Only English names are accepted and the company name needs to be approved before registration. The company name usually ends with SDN.BHD., which means "Private Limited Company".
3. Confirm the company’s place of registration
Each local council has different requirements for business licence applications.
When a Malaysian company is established, it must provide a valid local business address to facilitate government officials to conduct necessary official correspondence and legal records.
4. Registered capital
The minimum paid-up registered capital is RM1 and the amount can be increased at any time after successful registration with no upper limit.
5. Build equity structure and allotment
Both companies and individuals can be shareholders.
6. Confirm the company directors
At least one local director (Malaysian citizen or Malaysian resident) aged 18 or above and without bankruptcy or criminal record. One person can be both a director and a shareholder at the same time, and a director does not have to be a shareholder.
7. Company Legal Secretary
The legal secretary must be a Malaysian citizen and cannot be the sole director or shareholder of the company.
8. Main business scope of the company
Generally speaking, a Malaysian company can engage in all legal business activities, but can only choose one or two main businesses of the company when registering.
Malaysia Company Registration Process
1. Confirm the company directors and shareholders
Estimated time required: 1-2 working days
2. Prepare and search the company name to confirm the company name
Estimated time required: 1-2 working days
3. Prepare application materials for company registration
Estimated time required: 1-2 working days
4. Sign the company registration application documents
Estimated time required: 1-2 working days
5. Submit company registration application to the Malaysian Company Registration Committee SSM
Once the registration documents are complete, you can apply to submit the registration application. During the application process, the government agency may ask other questions, so your company needs to have professionals to follow up the entire approval process and respond to the government agency in a timely manner.
Estimated time required: 1-2 working days
6.Company registration is successful
All shareholders and directors will meet and conduct all the explanations about company laws, accounting, income tax, sales tax, service tax, employee-related laws, and request all documents for company registration and bank account opening. After successful registration, the company will receive official documents with certification.
Estimated time required: 7 working days
After the above process, the registration of the Malaysian company is completed.
Preparation before the company's formal operation
set up an account
Generally, a company needs to open a corporate bank account after receiving the registration materials.
Lease of business premises
Office space is rented according to the company's business needs for employees to carry out daily operations.
Apply for a business license
Different industries have different relevant licenses.
hiring employee
Since Malaysia is a multi-racial country and the education system allows mother tongue teaching, not only the Chinese are generally proficient in Chinese, but many other ethnic groups can speak fluent Chinese and dialects.
Recruit employees according to the company's business and operational needs.
What is a sole proprietorship?
Sole proprietorship is the most common and simplest legal business model option in Malaysia. Sole proprietorship is regulated by the Companies Commission of Malaysia and the Business Act 1956.
What are the requirements for setting up a sole proprietorship in Malaysia?
What documents are required to set up a sole proprietorship in Malaysia?
How long does it take to set up a sole proprietorship in Malaysia?
Can a foreigner set up a sole proprietorship in Malaysia?
No. Sole proprietorship is only allowed to be set up by Malaysian citizens or permanent residents.
How can a foreigner own a company in Malaysia?
What is the biggest difference between a sole proprietorship/partnership and a private limited company (Sdn.Bhd.)?
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