Do you know what you should do when you want to incorporate a company? You need to follow some requirements if you have the intention of registering a company and start running a business (Also see Errors That You May Commit When Recording Business Transactions) in Malaysia. If you are unfamiliar with these, you should engage a corporate secretarial firm in Johor Bahru to help you with the process of business registration which is quite complicated.
Business owners may incorporate two types of companies under Companies Act 2016, which are a company limited by shares and unlimited company. In this article, we will focus more on the process of incorporating a company limited by shares.
Business owners may incorporate a company that has a share capital (Also see Differentiating Capital Expenditures and Operating Expenses) as a private company or a public company. If the company is a private company, you will see “Sdn. Bhd.”, which stands for “Sendirian Berhad”, in its name. If the company is a public company, that you will see “Bhd.”, which stands for “Berhad” in its name. To open a company, you need to fulfil some requirements, which include having at least a subscriber to the company’s shares, at least a director and a corporate secretary. The secretary can be someone who is licensed by the SSM or someone who is one of the members of a professional body authorised by the KPDNHEP.
When incorporating a company limited by shares, the business owner needs to apply for a name search for the company. This is to identify if the company’s name proposed is available for company registration in Malaysia. The business owner needs to fill in and submit the Form 13A to SSM, and he needs to pay RM30.00 for every business name that it has applied. As soon as SSM has approved the proposed company name, the name will be reserved from the date it gets the approval for three months.
After getting the approval, the business owner needs to submit the incorporation documents needed for the registration of the company. He has to do so in 3 months from the date it gets the approval. If he fails to do so, he will need to apply for a name search again before opening a company in Malaysia.
The incorporation documents that the business owner needs to submit are the constitution, a statutory declaration by a director before the appointment, or by a promoter before the corporation’s incorporation, declaration of compliance, as well as some other documents like a copy of identity card of the company secretary and all the directors, the approval letter from SSM regarding the business name, as well as a copy of Form 13A. For companies which are limited by shares, for each company incorporation application, the business owner needs to pay a fee of RM1000 to SSM under the Companies Act 2016. After completing all the incorporation procedures and submitting the incorporation documents, SSM will issue a notice of registration to the business owner.