Malaysian Production Company Registration Guide

Malaysian Production Company Registration Guide | Bestar

Malaysian Production Company Registration Guide

Registering a production company in Malaysia involves several steps, primarily with the Companies Commission of Malaysia (SSM) and then with the National Film Development Corporation Malaysia (FINAS), along with other general business licenses.

Here's a guide to help you through the process:

1. Choose Your Business Structure

The most common and recommended structure for a production company in Malaysia is a Private Limited Company (Sdn. Bhd.). This offers limited liability protection for shareholders, meaning their personal assets are separate from the company's debts.

Other options include:

• Sole Proprietorship: Simple to set up, but the owner has unlimited liability.

• Partnership: Owned by at least two and not more than twenty partners, with unlimited liability.

• Limited Liability Partnership (LLP): Combines features of a partnership and a company, offering limited liability.

2. Company Registration with SSM (Suruhanjaya Syarikat Malaysia)

This is the foundational step for any business in Malaysia.

Key Requirements for Sdn. Bhd. Registration:

• Name Search and Reservation: Your proposed company name must be unique and comply with SSM's guidelines. You can check availability and reserve the name through the SSM online system (MyCoID). The name is reserved for 30 days.

• Directors: At least one director must be a natural person, 18 years or older, and ordinarily reside in Malaysia. They must not be a discharged bankrupt or convicted of certain offenses.

• Shareholders: At least one shareholder is required (can be the same person as the director).

• Company Secretary: You must appoint at least one company secretary within 30 days of incorporation. The secretary must be a natural person, 18 years or older, a Malaysian citizen/permanent resident, and a member of a professional body recognized by SSM or duly licensed by SSM.

• Registered Office Address: Your company must have a physical registered office address in Malaysia where all official documents and notices can be received.

• Minimum Paid-Up Capital: The minimum paid-up capital for a Sdn. Bhd. is RM1. However, some industry-specific licenses or foreign ownership may require higher capital (e.g., RM500,000 to RM1 million for foreign-owned companies, depending on business activity, or RM1 million for Wholesale, Retail, and Trade License).

Steps for SSM Registration:

1. Register as a user on MyCoID 2016 (SSM's online portal).

2. Activate your MyCoID account via email and create a new password.

3. Choose "New Name Reservation Application" or "Direct Incorporation." Direct incorporation combines name search and incorporation.

4. Complete the "Super Form" with particulars of the application, clarification, application details (directors, shareholders), information to agencies, and declarations.

5. Download the Superform (PDF format).

6. Proceed to online payment.

7. Upon approval, you will receive a Notice of Approval and a Notice of Registration.

Cost:

• Name reservation: RM50 for every 30 days.

• Company limited by shares (Sdn. Bhd.) incorporation: RM1,000.

3. Register with Inland Revenue Board of Malaysia (LHDN)

After incorporation, your company must register with LHDN for tax purposes, including income tax, withholding tax, and potentially other taxes. MyCoID often enables simultaneous registration with LHDN, EPF, and SOCSO.

4. Obtain Necessary Licenses and Permits

This is a crucial step for production companies, as specific industry licenses are required beyond general business registration.

General Business Licenses:

• Business License: Issued by local authorities (e.g., city council).

• Signboard License: For displaying business signage.

• Environmental Permits: If applicable, depending on your operations.

Industry-Specific Licenses (Production Companies):

The primary regulatory body for film and video production in Malaysia is the National Film Development Corporation Malaysia (FINAS).

FINAS Licenses:

• Film Production License (PF): For film and video production companies.

• Video Production License (PV): Specific to video production.

• Other FINAS licenses include Film Distribution (DF), Video Distribution (DV), Film Exhibition (EF), and Video Exhibition (EV) licenses, if your company plans to engage in these activities.

FINAS License Requirements (as of 2025):

• Must be registered as a Private Limited Company (Sdn. Bhd.) in Malaysia.

• Minimum paid-up capital of RM50,000.

• Submit a three-year production plan detailing intended projects (dramas, telemovies, advertisements, etc.).

• At least one shareholder must be a member of a recognized industry association such as:

  • Persatuan Seniman Malaysia (SENIMAN)

  • Persatuan Sutradara Malaysia (FDAM)

  • Persatuan Pekerja Profesional Filem Malaysia (PROFIMA)

  • Persatuan Karyawan Malaysia (KARYAWAN)

  • Persatuan Penulis Skrin Malaysia (SWAM)

  • Persatuan Penerbit Televisyen Malaysia (PTVM)

• Required Documents for FINAS application:

  • Completed Application Form (BPL-1)

  • Company's Memorandum and Articles of Association (if applicable)

  • Forms 24, 32A (if applicable), and 49 from SSM (certified true copies by Company Secretary or SSM)

  • Latest three months' company bank statements

  • Proof of membership in a recognized industry association

  • Letter of approval from MIDA (Malaysian Investment Development Authority) for PV license applicants (if applicable, for manufacturing-related activities).

FINAS License Fees & Deposits

:

• PF (Film Production): Annual fee RM100; refundable deposit RM1,000.

• PV (Video Production): Annual fee RM100; refundable deposit RM5,000.

Filming Authentication Certificate (SPP):

• Before commencing any filming activities, producers must obtain an SPP from FINAS. Applications should be submitted at least seven days prior to the start of filming.

• You may also need film location permits and licenses for equipment (e.g., cameras, drones), and potential permits for filming in public areas.

Foreign Productions:

• Foreign film producers planning to shoot in Malaysia should contact the Film In Malaysia Office (FIMO) at FINAS for advice on procedures and available incentives (like the Film in Malaysia Incentive - FIMI).

• Foreign producers typically need to appoint a Local Sponsor registered with FINAS to facilitate filming applications and approvals from PUSPAL (Central Agency Committee for Application for Filming and Performance by Foreign Artistes).

• Visas and work permits are required for foreign cast and crew.

5. Other Important Considerations:

• Financial Planning: Develop a comprehensive business plan, estimate startup and operating costs, and explore funding options.

• Intellectual Property Protection: Safeguard your creative works through copyright, trademark, or patent registration.

• Compliance: Ensure adherence to Malaysia's safety and environmental regulations, and employment laws.

• Business Bank Account: Open a corporate bank account after obtaining your Certificate of Incorporation.

• EPF & SOCSO Registration: If you hire local employees, you must register with the Employees Provident Fund (EPF) and the Social Security Organisation (SOCSO) to provide statutory benefits.

• Business Insurance: Consider purchasing business insurance to protect against potential liabilities.

How Bestar can Help

Malaysian Production Company Registration Guide

Engaging Bestar for your production company registration offers significant advantages, especially for first-time entrepreneurs or foreign investors. Here's how we can help:

1. Expertise and Knowledge of Local Regulations

• Up-to-Date Information: Malaysian business laws and regulations, particularly those from SSM and FINAS, can change. Bestar stays current with the latest requirements, ensuring your application complies with all rules.

• Avoiding Common Pitfalls: We know the common mistakes applicants make and can guide you to avoid them, preventing delays or rejections.

• Industry-Specific Knowledge: For a production company, this is crucial. Bestar understands the specific requirements of FINAS licenses, including the minimum paid-up capital, production plan requirements, and the need for industry association membership.

2. Streamlined Process and Time Savings

• Efficient Document Preparation: We handle the preparation and submission of all necessary documents to SSM, FINAS, LHDN, and other relevant authorities. This includes the Super Form, company constitution, declarations, and various application forms.

• Name Reservation and Checks: We can efficiently conduct name availability searches and reserve your preferred company name with SSM.

• Coordination with Authorities: We act as an intermediary, liaising with SSM, FINAS, and other government bodies on your behalf, saving you time and effort in navigating bureaucratic processes.

• Faster Turnaround: Our experience and established processes can significantly expedite the incorporation and licensing timeline.

3. Compliance and Legal Safeguards

• Legal Structure Advice: We advise on the most suitable business structure (e.g., Sdn. Bhd.) for your specific needs, considering liability, taxation, and long-term goals.

• Company Secretary Appointment: A company secretary is a mandatory requirement in Malaysia. Bestar offers corporate secretarial services, fulfilling this role and ensuring ongoing compliance with SSM regulations (e.g., annual returns, maintaining statutory registers, resolutions).

• Shareholder and Director Compliance: We ensure all requirements for directors and shareholders (e.g., residency, age, no bankruptcy records) are met.

• Contract Drafting and Review: Bestar can draft and review crucial contracts such as shareholder agreements, director service agreements, talent agreements, and production contracts, protecting your interests and minimizing legal risks.

• Intellectual Property (IP) Protection: Bestar can advise on and assist with registering your trademarks, copyrights, and other IP assets, which are vital for a creative production company.

4. Post-Incorporation Support

• Bank Account Opening: We can assist with the often-complex process of opening a corporate bank account in Malaysia.

• Tax Registration: We help ensure your company is properly registered with the Inland Revenue Board of Malaysia (LHDN) and advise on initial tax obligations.

• EPF and SOCSO Registration: For companies with employees, we guide you through the registration process for the Employees Provident Fund (EPF) and the Social Security Organisation (SOCSO).

• Ongoing Compliance: Bestar offers ongoing corporate secretarial, accounting, and tax compliance services to ensure your company remains in good standing with all regulatory bodies.

• Visa and Work Permit Assistance (for Foreigners): For foreign investors or directors, we can provide crucial support and guidance on obtaining the necessary visas and work permits to reside and work in Malaysia.

5. Strategic Advice

• Market Entry Strategy: Bestar can provide insights into the Malaysian market for film and video production, helping you formulate a sound business strategy.

• Feasibility Studies: We can assist with conducting feasibility studies for your production projects.

• Business Plan Development: While not strictly part of incorporation, a robust business plan is essential, and Bestar can help you develop one, which might be a requirement for FINAS or funding.

• Incentive Programs: We can advise on government incentives, grants, or tax relief programs relevant to the creative industry in Malaysia, such as the Film in Malaysia Incentive (FIMI).

In summary, leveraging the expertise of Bestar allows you to focus on your core business – creating and producing films and videos – while we handle the intricate administrative, legal, and compliance aspects of setting up and running your company in Malaysia.

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