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What you need to know before register a Company in Malaysia

Updated: Nov 1, 2021


First of all, what types of businesses are available in Malaysia?

There are 3 most common types of businesses that you can register for in Malaysia. They are:

  1. Sole Proprietorship (i.e. Enterprise or Trading)

  2. Partnership (e.g. Wandagal and Partners)

  3. Sendirian Berhad (i.e. Sdn Bhd or Private Limited)

Sole Proprietorship or Partnership are popular business options among the new Small Medium Enterprise (SME) owners in Malaysia. The reason is because:

  • cheapest options (registration fees about RM100)

  • fastest registration process (about 1 hour)

Other things you need to take note for Sole Proprietorship or Partnership are:

  • number of owner (Only 1 for Sole Proprietor & minimum 1 to maximum 20 for Partnership)

  • Unlimited liabilities - You will have to personally liable and responsible for all the debts of your business.

  • Sole proprietorship or Partnership will most likely be ceased or closed down immediately once the owner or partners withdrawn from the business or deceased.

On the contrary, a Sdn Bhd business needs to have a minimum of one director who do not have a bankruptcy status as well as a minimum of one shareholder. The registration fees can goes to about RM1,000 and duration usually takes 10-14 days.

The benefits of register Sdn Bhd are:

  • Limited liabilities - Your personal wealth will be protected

  • Easier to obtain financing, it depends on company cash flow, strategy and business prospects

  • Better tax planning as company is a separate legal entity

All business needs to be legally registered with the Companies Commission of Malaysia (SSM).


Who is SSM?


The Companies Commission of Malaysia (Malay: Suruhanjaya Syarikat Malaysia), abbreviated SSM, is a statutory body formed under an Act of Parliament that regulates corporate and business affairs in Malaysia. The main purpose of SSM is to serve as an agency to incorporate companies and register businesses as well as to provide company and business information to the public.


What you need to do to register a Sdn Bhd?


To register a company in Malaysia, you will need to be prepared with the following documents:

  1. A company name

  2. Business activities

  3. A registered office in Malaysia

  4. A minimum of 1 director (minimum 18-years of age and residing in Malaysia)

  5. A minimum of 1 shareholder

  6. A minimum of 1 Corporate Secretary who must be a member of any of the prescribed professional bodies and/or licensed by the SSM.

  7. A minimum paid-up capital of RM1

  8. Copy of all directors’ & shareholders’ Identification Card (IC) or passport

Registration process:-

Company name search -----> Preparation of registration documents -----> Signing of documents by all directors and shareholders -----> Submission of documents to the SSM -----> Digital incorporation certificate issued by the SSM


Is that all?


Having a Business Registration Certificate alone is not enough. Here are five other important things you need to do:

1. Appoint a Company Secretary

2. Open a company bank account

3. Register your business with SOCSO

4. Register your business with EPF/KWSP

5. Appoint an auditor & tax agent



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