Bestar Reply Malaysia Company Incorporation Inquiry

Roger Pay
Jun 15
5 min read

Updated: Aug 28

Bestar Reply Malaysia Company Incorporation Inquiry

Hello Client,

Thank you for reaching out to Bestar regarding company incorporation in Malaysia.

Bestar offers services for incorporating a Private Limited Company (Sdn Bhd) in Malaysia.

Key Requirements for Setting Up a Sdn Bhd in Malaysia

Directors: You'll need at least one director who is a Malaysian resident and is at least 18 years old. This individual must not be a bankrupt or have a criminal record.

Shareholders: The company must have a minimum of one shareholder. In most industries, foreigners are allowed to hold 100% ownership.

Company Secretary: It's a legal requirement to appoint a qualified company secretary within 30 days of incorporation. This person must be licensed by the Companies Commission of Malaysia (SSM) or be a member of a professional body like MAICSA.

Registered Office: Your company must have a physical address in Malaysia for legal and official correspondence; a P.O. Box is not acceptable. This is often the company secretary's office.

Paid-up Capital: While the legal minimum is just RM1, certain industries may have a higher required paid-up capital.

Company Name: The name you choose must be unique and approved by the SSM. A name search and reservation are part of the process.

Business Activities: You need to provide a clear description of the company's business activities. The Companies Act 2016 allows for great flexibility, so your company can generally engage in any legal business.

Here's a breakdown of the steps, documents, costs, and our specific services:

Steps Involved in Incorporating a Sdn Bhd in Malaysia

The process of incorporating a Sdn Bhd involves these key steps:

Name Search and Reservation:
- Propose unique company names and check for availability with the Companies Commission of Malaysia (SSM - Suruhanjaya Syarikat Malaysia) via the MyCoID online system.
- Once a name is approved, it can be reserved, usually for 30 days (extendable).
Preparation of Incorporation Documents:
- This involves preparing the necessary forms and declarations as per the Companies Act 2016.
- Key information includes proposed company name, business activities, details of directors and shareholders, and the registered office address.
Signing of Company Documents:
- Directors and shareholders will need to sign the required declarations and forms. This can often be done electronically now.
Submission to SSM:
- The prepared documents and application are submitted to SSM through their online MyCoID portal.
SSM Review and Approval:
- SSM reviews the application. The processing time can be quite fast, often within 1-2 business days if all documents are in order.
Issuance of Notice of Registration:
- Upon approval, SSM will issue a Notice of Registration (and previously, a Certificate of Incorporation, though now it's typically a registration notification). A certified true copy (CTC) of the Certificate of Incorporation can be obtained upon application and payment of a fee.
Post-Incorporation Requirements:
- Appoint a Company Secretary: A qualified company secretary must be appointed within 30 days of incorporation. They are crucial for ensuring compliance with all applicable laws and regulations.
- Open a Corporate Bank Account: A corporate bank account needs to be opened for the new company.
- Register with LHDN (Inland Revenue Board of Malaysia): For tax purposes, including income tax, withholding tax, etc. MyCoID often facilitates simultaneous registration with LHDN, EPF (Employees Provident Fund), and SOCSO (Social Security Organization).
- Obtain Necessary Licenses and Permits: Depending on the nature of your business, you may need specific business licenses from local authorities (e.g., city council) or industry-specific licenses (e.g., for retail/wholesale, education, finance, etc.).

Documents Required:

You will need:

For each Director and Shareholder (individual):

Copy of Identity Card (MyKad for Malaysians) or Passport (for foreigners)
Latest residential proof of address (e.g., utility bill or bank statement, especially for foreigners or Malaysians residing overseas)
Declaration of Non-Bankruptcy (often part of the forms prepared by the Company Secretary)

For the Company:

Proposed Company Name(s)
Description of Primary Business Activities
Registered Office Address in Malaysia
Share Capital Details (minimum paid-up capital is RM1, though higher may be required for certain licenses or foreign ownership)
Percentage of Shareholding for all shareholders
Letter of Authorization (if the proposed company name contains controlled words or trademarks)
Company Constitution (formerly Memorandum and Articles of Association) - while not mandatory for all companies under CA 2016, it's still an important document.

Costs:

Bestar's Specific Services for Company Incorporation:

Professional Services Fees:
- Incorporation Service Fees: USD636, bundled with the first year of company secretarial services. (includes SSM Fees (Government Fees) USD271).
- Free Company Secretarial Service for One Year (valued at USD285 per annum).
- Registered Office Address: Bestar provides this for an annual fee (USD84).
- Nominee Director Service: If you require a local resident nominee director (needed for foreign-owned companies that don't have a Malaysian resident director), Bestar offers this service for USD1,140 per annum, plus a refundable security deposit of USD1,140.

Our Company Incorporation Service includes:

Unlimited name search for availability.
Free name reservation with SSM (up to 2 times).
Approval Letter To Use Name.
Handling of paid-up capital from RM1 to RM1,000.
SSM registration fee of USD236.
Submission of forms to SSM.
Preparation of first board of directors meeting resolutions.
Preparation of 2 sets of certified true copies (CTC) of company registration documents.
Free Certificate of Incorporation.
Free company registration consultation and advisory.
Free tax planning and SST advice.
Free company digital name tags for display at the registered office.
Free for first 3 directors, shareholders, and beneficial owners (additional charge from the fourth person).
Additional charge for corporate shareholders/beneficial owners.

Additional Potential Costs:

Bank Account Opening: USD75 per bank account (Preparation of resolution to open a corporate bank account).

How to Get Started with Our Services

Here are the steps:

Consultation & Proposal:
- Receive a proposal/quote: We will discuss your business needs to tailor our services and provide a comprehensive proposal, including a detailed quotation for our fees and government charges.
Payment:
- Once you agree to the proposal, you'll make the initial payment for the agreed-upon services.
Provide Required Information & Documents:
- Complete forms: We will send you forms like a "Company Incorporation Form", "KYC (Know Your Client) Form", and a "PDPA Consent Form" to gather necessary details about your proposed company, directors, and shareholders.
- Submit identification: You'll need to provide scanned copies of passports/NRICs and proof of residential address for all directors and shareholders. For foreign documents, these may need to be notarized.
Incorporation Process:
- Bestar will then proceed with the company name reservation and submission of the incorporation application to SSM.
- We will keep you updated on the progress. Typically, incorporation can be completed within 5 to 7 business days once all documents are in order and submitted to SSM.
Post-Incorporation:
- Upon successful incorporation, you'll receive the Certificate of Incorporation and Business Profile.
- Bestar will then assist with opening a bank account and setting up any ongoing services (corporate secretarial, accounting, etc.) you've engaged us for.

Post-Incorporation Compliance & Our Comprehensive Services:

Once your company is incorporated, there are ongoing statutory compliance requirements. Bestar offers a full suite of services to ensure your company remains compliant with Malaysia regulations:

Accounting & Tax Compliance: Comprehensive bookkeeping, financial statement preparation, and corporate tax filing services.
Payroll Services: Managing payroll processing and related statutory contributions.
Business Advisory: Ongoing advice on corporate governance, regulatory changes, and business strategy.