Registering a Company Name in Malaysia

Registering a Company Name in Malaysia | Bestar

Registering a Company Name in Malaysia

In Malaysia, the registration of a company name is a crucial step in the overall business registration process, which is managed by the Companies Commission of Malaysia (SSM). The specific steps and requirements vary depending on the type of business structure you choose. The two most common structures for new businesses are Sole Proprietorship/Partnership and Private Limited Company (Sdn. Bhd.).

Key Steps for Company Name Registration

1. Choose Your Business Structure

Before you can register a name, you must decide on the type of business entity.

• Sole Proprietorship & Partnership: These are for Malaysian citizens or permanent residents aged 18 and above. Registration is simpler, and you can register using either your personal name or a trade name.

  
  

• Private Limited Company (Sdn. Bhd.): This is a separate legal entity from its owners, offering limited liability. It's the most popular structure for foreign investors and growing businesses. An Sdn. Bhd. requires at least one director and one shareholder, and a qualified company secretary.

2. Reserve Your Company Name

You must check if your desired company name is available and not too similar to any existing registered businesses.

• For Sole Proprietorships and Partnerships: You can check name availability through the SSM's EzBiz Online portal. If you're using a personal name as it appears on your identity card, you don't need to apply for a name approval. However, for a trade name, you must submit an application (Form PNA.42).

  
  

• For Sdn. Bhd. Companies: The name reservation process is done through the MyCoID portal. You'll submit your proposed name and pay a fee. If approved, the name will be reserved for 30 days, giving you time to submit the full registration application. The reservation can be extended if needed.

3. Follow Naming Guidelines

The SSM has specific guidelines for company names to ensure they are unique and not misleading.

• Prohibited Words: Avoid words that are offensive, resemble other registered businesses, or are restricted by law.

  
  

• Approval for Certain Words: Some words, such as "Royal," "National," "Federal," or names suggesting a connection to a government agency, may require special approval from a minister.

  
  

• Structure: For Sdn. Bhd. companies, the name must end with "Sdn. Bhd." or "Sendirian Berhad."

Documents and Platforms

The registration process is primarily conducted online through the SSM's official portals:

• EzBiz Online: For registering sole proprietorships and partnerships.

  
  

• MyCoID portal: For incorporating Sdn. Bhd. companies.

The documents required typically include:

• A copy of your identity card (MyKad) or passport.

• The proposed company name and a description of the business activities.

• A registered business address.

• A copy of the partnership agreement (if applicable).

• Other relevant forms, such as the declaration of compliance and details of directors and shareholders (for Sdn. Bhd.).

Post-Registration

Once your name is approved and your company is registered, you will receive a Certificate of Registration or Incorporation from the SSM. This certificate is essential for subsequent steps, such as opening a corporate bank account and applying for any necessary licenses or permits from other government agencies. It is an offense to conduct business without registering with the SSM, and doing so can result in significant fines or imprisonment.

Fees

The fees for company registration in Malaysia vary significantly depending on the type of business you want to register. The fees are set by the Companies Commission of Malaysia (SSM) and can be paid directly through their online platforms.

1. Sole Proprietorship and Partnership (Registration of Business - ROB)

This is the most straightforward and affordable option, managed through the SSM's EzBiz Online portal. The fees are based on the type of name you use:

• Personal Name: If you register the business under your name as it appears on your identity card (e.g., "Ali Bin Abu"), the fee is RM30 per year.

  
  

• Trade Name: If you use a business or trade name (e.g., "Happy Cafe"), the fee is RM60 per year.

  
  

• Registration of Branches: An additional RM5 per year is charged for each business branch you register.

  
  

2. Private Limited Company (Sdn. Bhd.) (Registration of Company - ROC)

Registering a Sdn. Bhd. company is a more complex and expensive process. The fees are standardized by the SSM, and additional costs may be incurred if you use a company secretary or an agent to handle the incorporation.

• Name Reservation: The application to reserve a company name costs RM50 for every 30 days of reservation.

  
  

• Incorporation Fee: The flat fee for incorporating a company limited by shares is RM1,000. This fee is charged for each application.

  
  

• Company Limited by Guarantee: For this type of company (often used for non-profit organizations), the incorporation fee is RM3,000.

  
  

• Other Potential Costs:

  
  

  • Professional Services: Many businesses engage Bestar to handle the incorporation process. Our fees can range from RM500 to RM2,000 or more, which would be in addition to the SSM's fees.

    
    

  • Annual Fees: After incorporation, a Sdn. Bhd. must also pay an annual fee of RM150 to lodge its annual return with the SSM.

It's important to note that all fees are subject to change, and the most accurate and current information can always be found on the official SSM website. The fees mentioned above are the standard rates and do not include any potential third-party service charges, taxes, or other administrative costs that may arise.

How Bestar can Help

Registering a Company Name in Malaysia

Navigating the process of company registration in Malaysia can be complex, especially for foreign entrepreneurs or first-time business owners. This is where professional services, such as Bestar, can be invaluable. We provide expertise and support to ensure a smooth and compliant registration and ongoing operation.

Here's how Bestar can help:

1. Expertise and Guidance on Legal Requirements

Bestar is well-versed in the Malaysian Companies Act 2016 and the specific regulations set by the Companies Commission of Malaysia (SSM). We can:

• Advise on the Right Business Structure: We will help you choose the most suitable business structure (e.g., Sole Proprietorship, Partnership, Sdn. Bhd., or LLP) based on your business objectives, liability concerns, and capital requirements.

  
  

• Ensure Legal Compliance: Bestar ensures that all forms, documents, and procedures adhere to the latest legal standards, preventing costly errors, delays, and penalties.

2. Streamlined Registration Process

The registration process involves several steps, from name reservation to document submission. Bestar can handle these tasks efficiently:

• Name Reservation: We will conduct a thorough search to ensure your proposed company name is available and meets SSM's naming guidelines. We'll manage the name reservation application and liaise with SSM for approval.

  
  

• Document Preparation: We will prepare all the necessary incorporation documents, such as the company constitution (if required), director and shareholder consent forms, and other statutory declarations.

  
  

• Submission and Follow-up: We will submit the registration application to SSM on your behalf and follow up on its status, addressing any queries from the commission to expedite the process.

3. Fulfilling the Role of a Company Secretary

For a Private Limited Company (Sdn. Bhd.), the appointment of a qualified company secretary is a mandatory legal requirement. Bestar can serve as your company secretary and perform a wide range of crucial duties, which include:

• Maintaining Statutory Records: We are responsible for keeping and maintaining all statutory records, such as the Register of Members, Register of Directors, and the minute book.

  
  

• Filing Annual Returns: We handle the timely preparation and submission of annual returns and other required forms to the SSM, ensuring your company remains in good standing.

  
  

• Advisory Role: We provide advice to the board of directors on corporate governance, compliance with the Companies Act, and best practices.

4. Post-Incorporation Support

Beyond the initial registration, professional services often offer a suite of post-incorporation services to help your business get started and stay compliant:

• Opening a Corporate Bank Account: We can assist in preparing the necessary documentation and resolutions to open a corporate bank account.

  
  

• Licensing and Permits: We can provide guidance on the specific licenses and permits required for your industry and business activities.

  
  

• Tax Registration: We can help with registration with the Inland Revenue Board of Malaysia (LHDN) and other relevant authorities.

  
  

• Ongoing Compliance: Bestar offers ongoing corporate secretarial services to manage your company's compliance needs on an annual basis, allowing you to focus on your core business operations.

By engaging a professional service, you can save significant time and effort, reduce the risk of non-compliance, and gain peace of mind knowing that your company is established and maintained correctly according to Malaysian law.

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