Doing Business

How to incorporate a company in Malaysia in 2022

Trường Lăng

December 28, 2022

Doing Business

How to incorporate a company in Malaysia in 2022

Trường Lăng

December 28, 2022

There are the 5 main types of business entities available in Malaysia.

· Sole Proprietorship
· Partnership
· Sendirian Berhad (Sdn Bhd): Private limited company limited by shares
· Berhad (Bhd):

  • Unlisted Public Company
  • Listed Public Company
  • Company Limited by Guarantee

· Limited Liability Partnership (LLP): Mix of traditional partnership and Sdn Bhd company

During the progress, simple procedures that can be finished include incorporating a business in Malaysia and creating a corporate bank account. If a Power of Attorney is granted to the Malaysia incorporation agent, who will then carry out all procedures on his behalf, Our Client won’t need to travel to the nation. The following steps are as below:

Requirements

After deciding on the business entity type, to set up a company in Malaysia, the following requirements shall be met:

· Minimum of 1 shareholder
· Minimum of 1 local resident director
· Minimum of 1 local resident company secretary
· Minimum of RM1.00 initial paid-up capital
· A local registered address

Pre-incorporation planning

  • Before Viettonkin Consulting moves forward with the establishment of a Malaysian business, our firm demands that our Client shall:

i) pay the engagement fees that are due,
ii) sign our engagement letter, and email it back to us;
iii) each shareholder, director, and the corporate beneficial owner shall deliver to us all requested due diligence papers such as:
Copy of Identification Card (IC) or Passport
Copy of residential proof address or bank statements

  • The Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia – SSM) is searched by Viettonkin Consulting’s Malaysia Incorporation Team for company names. If the name is available, we fill out Form PNA 42 on your company’s behalf to reserve it. SSM typically takes 1 to 3 working days to approve a name reservation.
  • For our Client, Viettonkin Consulting creates a thorough engagement strategy for the creation of a Malaysian Company that includes the requirements for creating a corporate bank account. In order to maximize openness and ensure that our Client’s expectations will be met throughout the project, this engagement project plan outlines, week by week, each stage to engagement completion;

Incorporation procedure

  • Viettonkin Consulting will complete the incorporation of Form A for our Client’s signature and courier return once the corporate structure has been decided upon with our Client. After that, we create the corporate documents for the company incorporation.
  • To our client for his signature and courier return to us, our team emails the Memorandum and Articles of Association, as well as the director and shareholder consent forms. Viettonkin Consulting’ Incorporation Team works with the SSM to finalize business incorporation in Malaysia, provided our Client gives us the original signed documents in a timely way;
  • The Certificate of Incorporation from the Malaysia SSM is sent to Viettonkin Consulting via email, and our staff quickly forwarded it to the Client;
  • The Viettonkin Consulting Malaysia incorporation team submits to the SSM a register of the company’s shareholders, directors, managers, and secretaries on behalf of the client.

Post-incorporation

  • By filling out and submitting Form CP 600C to the Inland Revenue Board of Malaysia, Viettonkin Consulting registers our Client’s business for corporate tax;
  • Together, the Banking Team at Viettonkin Consulting opens a corporate bank account for our Client in Malaysia with top-notch multi-currency internet banking capabilities. For the purpose of offering corporate bank account services, we collaborate with locally-based Maybank, Public, CIMB, and RHB banks as well as globally renowned institutions like HSBC, Standard Chartered, and Citibank.
  • In order to avoid our Client having to go for a bank account opening interview, Viettonkin Consulting’s Banking Team will also communicate with the bank. Our Client is obliged to deposit the proposed share capital of the company as soon as the bank account is opened. The board resolution to move forward with creating a bank account will be sent by our company secretary together with all approved corporate documentation;
  • Following the conclusion of the engagement, Viettonkin Consulting couriers a company kit folder containing the following corporate documents, including original corporate documents, bank correspondence, and a client feedback survey to evaluate the quality of our Malaysia company incorporation services, to our Client’s preferred international address;
  • All foreigners wishing to work lawfully in Malaysia must first get a working visa in Malaysia. There are 2 main types of work passes available in Malaysia:

· Employment Pass
· Professional Visit Pass
Viettonkin Consulting will assist clients in applying for a working visa for foreigners working in Malaysia

Conditional business sectors in Malaysia

The following commercial activities call for a license for foreign investors when forming a company in Malaysia:

(i) manufacturing;
(ii) banking;
(iii) construction projects;
(iv) oil, gas,
(v) both retail and wholesale.

See this page for more information;

Malaysia local business industry licenses are as follows:

Business TypeType of Business License
Education of all typesUniversities,Colleges,Schools,Tuition Centre,Kindergarden,Language Centre
TourismInbound,Outbound and Ticketing
TransportationCar Rental
Publishing of Books,MagazinePublication
Broadcasting to the PublicTV,Radio, and Music
Distributive,Import/Exports/TradingWholesale Retail Trade (WRT) License for Trading,Import,Export,Restaurant
ManufacturingFactories of all kinds
HospitalityLuxury Hotel,Budget Hotel
Construction and BuilderConstruction Industrial Development Board and Engineering
ICT and E-commerceMulti-Super Corridor (MSC)
Direct Selling and Multi Level MarketingMLM License
BankingCentral Bank of Banking and Financing
Tax Advisory and ConsultancyInland Revenue Board
Audit and Account ServiceMalaysia Institute of Accountant
InsuranceInsurance Agent/Broker/Underwriter
ShippingMaritime License
FranchisingFranchise License of all types
Hire Purchase/Leasing BusinessLeasing
Legal Service/Litigation/AdvocateLawyer
HR Recruitment and PlacementRecruitment License

Compliance under Malaysian regulations

The following post-incorporation compliance factors for our Client’s Malaysian company:

  • Our Client is required to appoint Malaysian auditors six months before the required Annual General Meeting;
  • The Annual General Meeting (AGM) must be convened 18 months after incorporation, and the Annual Return must be filed within 14 days of the AGM;
  • Our Client must finish Employee Provident Fund (EPF) registration within a week after formally hiring the first employee, and within a month, register with Social Security Organization (SOCSO);
  • Our Client must register for GST with the Royal Malaysia Customs Department and submit quarterly reporting if annual sales exceed US$121,000 (RM500,000).

Related posts

Doing Business

Strengthening Vietnam-India Trade and Investment Cooperation

Table of Contents Vietnam – India diplomatic relationsStrong economic & trade partnership between Vietnam – IndiaRobust investment cooperation between Vietnam – IndiaProspects and trends in ...
Read more
Doing Business

Dubai’s creative economy ranks top in FDI draw

Dubai’s thriving creative economy drew Dh4.9 billion foreign direct investment in 2021 to rank first in the region and fourth globally in terms of creating ...
Read more

Download our Latest Ebook about Real Estate and Property!

Real estate holds a pivotal position in the development of a country, not only via the spillover impacts on other economic sectors such as construction, manufacturing, tourism, finance and banking etc. but also affecting the social dynamic by mobilizing the residency and infrastructure system. Foreign direct investment in real estate (RFDI) in Vietnam has a long running history and is unique in that it is largely dominated by the private sector compared to other industries which usually still have a rather large Government involvement. International capital has consistently been selecting real estate as the destination of choice, given that RDI has always been in the top 2 and 3 for volume inflow over the last 10 years, even throughout extremely turbulent periods such as COVID-19, per the General Statistics Office of Vietnam’s (GSO) data. Find out more in this ebook edition.

Tải cuốn ebook mới nhất về nền kinh tế số Việt Nam!

The digital economy of Vietnam has been fueled and accelerated by the global digital trends and the pandemic Covid-19. The movement of digital transformation is underway in every corner of Vietnamese life, strongly influencing the way people do things. Digital economy is the future of the Vietnam economy. Realizing the potential of the digital economy, the Vietnam government has issued policies, guidelines and created legal frameworks to support and further enhance this economy. In this ebook edition, the digital economy is looked at from different angles. Perspectives from the key elements comprising Vietnam digital economy are examined and discovered.

Our Happy Clients