Things You Must Know Before Starting a Company in Malaysia

Posted by We Corporate on February 8th, 2022

Few things are as exciting as launching a business. When it comes to startups, Malaysia has emerged as one of the best environments for entrepreneurs in the Pacific region. Several things make the country a great place to bring your business ideas to life, such as the country’s reduced tax rate for small-to-medium enterprises (SMEs). More is afoot here than just low tax rates. In fact, there are at least six great reasons to consider making your entrepreneurship dreams come true in Malaysia.

All that said, if you are intending on starting a company in Malaysia, it is vital to know what you are signing up for.

Proposed name for company

When registering your company as Sdn Bhd, you should provide two name options. However, there are guidelines to follow in naming your company. For example, the company name should be unique, or it must not contain obscene words.

The completed guidelines on company names for the registration of name for incorporation of a company or to change the name of a company can be found on the SSM website.

Nature of Business

It is necessary to state the nature of business you will be operating in provided the nature of business does not breach any laws.

Paid up Capital

The paid-up capital should be determined when starting a company in Malaysia. The paid-up capitals are funds provided by the shareholders in exchange for shares in the company. These funds are usually rolled for the operation of the company in its expenses.

Business address of the company

This is not a compulsory requirement. However, when registering your company, it is recommended to insert the address of the place you’d be operating your business from.

Financial Year End

When registering your Sdn Bhd, it is advisable for you to determine your Financial Year End. This is necessary for tax filing and audit purposes. This, however, is not a compulsory requirement. 

Shareholders

You will have to list down the following details of the shareholders of your Sdn Bhd company:

• Name
• Email address
• Contact number
• Residential address
• Percentage shareholding of each shareholder
• Copy of NRIC/Passport
• Proof of address (example: utility bill) for each shareholder.

For Corporate shareholders , these documents are required, in English:

• Company profile
• Certificate of incorporation
• Register of shareholders
• Resolution approving of the investment into the Malaysian company
• Appointment of authorised representatives to act on behalf of the corporate shareholder

List of Directors

You will also need to provide the following details of the directors of the Sdn Bhd company:

• Name
• Email address
• Contact number
• Residential address
• Copy of NRIC/Passport
• Proof of address (example: utility bill) for each director.

At WeCorporate, we can help you in registering your Sdn Bhd company while you focus on the important aspects of building your company.

Read more on how to start a Malaysian company at WeCorporate Advisory.