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  • What are the requirements to form a Company in Malaysia?
    1. A minimum paid-up capital of MYR 1.00 only. 2. A minimum of One (1) subscriber to the share(s) of the company. 3. A minimum of One Director who are at least 18 years of age and are residing in Malaysia. He/ she is not a bankrupy and has not been convicted and imprisoned for a period of past 5 years. 4. A minimum of One Company Secretary (Company Secretary must be a member of any one of the prescribed professional bodies or liecensed by the SSM). 5. Must have a registered office in Malaysia to which all communications and notices may be addressed.
  • What are the procedures for incorporation?
    1. Propose nameas for company name 2. Make a name search to check availability of the proposed name 3. Reserve the proposed name 4. Fill in the particulars of Section 14 Form - Proposed name of the company - Status of private/ public company - Proposed type of business - Registered office address - Business address - Complete detail of Director(s) & promoter(s) - Declaration of the Director(s) & promoter(s) 5. Fill in the form of Declaration of Compliance 6. Prepare additional documents if required - A copy of consent letter from corporate body named as the member of the company - A copy of certificate of Director's qualification - A consent letter from relevant agency 7. Prepare incorporation fee of MYR 1010.00 to SSM 8. Wait within 7 working days to get the notice of approval and registration, Most Importantly, a Certificate of incorporation in Malaysia
  • Can foreigners open company in Malaysia?
    Yes, they can. However, under the Company Commission of Malaysia (CCM), all foreigners are only allowed to register a Private Limited Company (Sendirian Berhad).
  • What are the requirements for being a Director?
    1) A natural person who is at least 18 years old. 2) A person shall not be bankrupt and have not been convicted of an offence in relation to the promotion, formation, management of a corporation, bribery, fraud or dishonesty.
  • Can a foreigner be the Resident Director?
    Yes, provided he/ she is: 1) A permanent resident 2) His/ her principal place of residence is in Malaysia with employment pass 3) He/ she is 18 years old and above and need to lodge with SSM a statutory declaration (Form 48A) declaring he/ she is not a bankrupt and is involved in conviction of any offence.
  • What are the responsibilities of Director?
    1) Is known as company officer and can also be shareholder 2) Manage the company business and affairs within the power 3) Is appointed to a company at discretion of the shareholders 4) Call meetings including annual general meeting (AGM), annual meeting of shareholders and extraordinary general meeting. 5) Brokers contract with lenders, suppliers for benefit of the company and the shareholders. 6) Legally responsible to ensure that there is no any action taken to violate Companies Act and the company complies with corporate compliance.
  • How many Directors need to be appointed?
    Pursuant to Section 196(1) of the Companies Act 2016, that a company shall have a Minimum number of Directors as follow: - Private Limited Company- 1 Director - Public Company- 2 Directors The Director must be ordinary reside in Malaysia by having principal place of residence in Malaysia. The requirement of residency is mainly to ensure that there is a point of contact in Malaysia and for purposes of enforcement.
  • What are the requirements for being a Shareholder?
    1) He/ she is at least 18 years old. 2) He/ she is not a bankrupt and has not been convicted and imprisoned.
  • How many Shareholders need to be appointed?
    Statutory minimum no. of shareholders is one (1). Maximum number of shareholders is 50 people.
  • What are the roles of Shareholder?
    1) Is known as members of company 2) Can be natural person or corporate body 3) Can be Director 4) Own some/ all of company through shares 5) Not involved in day-to-day business of the company 6) Have the power to appoint and remove director by ordinary resolution 7) Will make decision aboutn significant issues 8) Have limited liability as company debts are responsibility of company itself, shareholder is only liable up to the price they paid for shares, or if the shares are partially paid, shareholder will be required to pay remaining balance
  • What are the requirements for a Secretary?
    1) A natural person who is at least 18 years old 2) A citizen or permanent resident of Malaysia 3) A member of a body as set out in the Fourth Schedule: - Malaysian Institute of Chartered Secretaries and Administrators - Malaysian Institute of Accountants - Malaysian Bar - Malaysian Association of Company Secretaries - Malaysian Institute of Certified Public Accountants - Sabah Law Association - Advocates Association of Sarawak 4) A person licensed by the Commission under Section 20(G) of the Companies Commission of Malaysia Act 2001
  • What are the other roles of Company Secretary?
    - Ensure the company complies with its constitution and drafting/ incorporating amendments in accordance with correct procedures - Act as official liaision officer of the company - Prepare and submit statutory returns to Companies Commission of Malaysia - Prepare minutes, resolutions, and attend meetings - Implement changes in the structure of company shares - Prepare documents and authorise changes in the name of company/ changes in Directors - Coordinate the publication and distribution of Company Annual Report, accounts and interim statement, and preparation of Director's report
  • What are the general principles that can be considered as Company name?
    1) Names shall use the correct language and spelling 2) If a name contains words other than the Malay/ English Languages, the meaning of such words must be given 3) Names which are not blasphemous/ likely to be offensive to members of the public 4) Names which do not resemble elements of religion 5) Certain names which are not too general, eg: "Attempt Sdn. Bhd." / "Beautiful Sdn. Bhd." 6) The usage of individual names shall be from the names of the directors to be named in the Memorandum/ Articles of Association. However, individual names can be considered if such names are from the names of immediate family members of the Director/ promoter, eg: the names of children, father, wife, grandfather/ grandmother. Proof of family relationship must be given. If the name of the company is from the individual name of a group of companies in existence, consent letter must be obtained from the group of companies which have such individual names 7) State the meaning of the created words 8) Company name is not an acronym that can be used to mislead as the name of a multi-national company, eg: PNB, ICI, IBM
  • Why is the Company name not available?
    1) It is undesirable/ unacceptable in opinion of Registrar 2) It is identical to the existing company, corporation/ business 3) It is identical to name that is being reserved under Companies Act 2016 4) It is a name of a kind that Minister has directed the Registrar not to accept for registration - Name suggesting connection with members of Royal family/ Royal patronage - Name suggesting connection with State/ Federal government department, statutory body, authority/ government agency/ any municipality/ other local authority - Name suggesting connection with any Asean, Commonwealth/ foreign government/ with the United Nations/ other international organization/ cartel - Name suggesting connection with any political party, society, trade union, co-operative society/ building society - Name including any words like import or the following words, "Bank", "Bureau", "College", "Fair Price", "Foundation", "Guarantee", "Institute", "Insurance", etc. - Name misleading as to identity, nature, objects/ purposes of company
  • What is SSM and CCM?
    SSM or Suruhanjaya Syarikat Malaysia is the malay term of CCM or Companies Commission of Malaysia. They serve as a government agency to incorporate companies and register businesses as well as to provide company and business information to the public.

Frequently Asked Questions

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