What are the things you need to know before forming a company?
There are many types of business entities (or vehicle) that you can form in Malaysia. For this article, we will focus solely on the most common vehicle, the Private Limited Company or Sendirian Berhad (often abbreviated to Sdn. Bhd.).
#1 Shareholders, Directors and Company Secretary
To form a Sendirian Berhad (Sdn. Bhd.) in Malaysia, you are required to have a minimum of two (2) shareholders, two (2) directors and a company secretary. The directors and company secretary must be resident in Malaysia. The company secretary must also be professionally qualified or licensed in the country (see: Section 139A of the Companies Act 1965).
#2 Incorporation Fee
The fee includes the following:
- Company name search
- Oaths, Stamping and Declaration
- Common Seal
- Register of Members
- Minutes Book
- Memorandum & Article of Association
- Professional fees for the preparation and filing of documents and liaison with the Suruhanjaya Syarikat Malaysia (SSM)
- Registration fee for Minimum Authorised Share Capital* payable to the Suruhanjaya Syarikat Malaysia (SSM).
*The amount increase according to authorized share capital. See: Fees table
- Others such as delivery, printing and etc.
#3 Retainer Fees
According to Section 139 (1) of the Malaysian Companies Acts 1965 “every company shall have one or more secretaries each of whom shall be a natural person of full age who has his principal or only place of residence in Malaysia”.
The fee is for the appointment of company secretary and the use of the office address as registered office as it is a requirement under the Companies Acts to have a registered office (see: Section 119 (1) of the Companies Acts 1965).
Note: E-mail us to get a quotation now, find out what are the information you are required to provide to us HERE.
#4 Other Charges
The followings are some of the charges that you may incur other than the above:
- Filing of Annual Return with the Suruhanjaya Syarikat Malaysia (SSM) (compulsory)
- Preparing resolutions, notice of meetings and minutes of meetings (compulsory for AGM)
- Attending Board/Annual/Extraordinary General Meeting(s)
- Certification of forms or documents
- Certification of Memorandum and Articles of Association (if any changes on the original)
#5 Your Company Name
Yes! We are not kidding. You should prepare at least 2 names (but only apply using the first name/choice with the SSM) just in case the first name/choice is not approved, then the company secretary can quickly send the second application using the second name/choice. Although the application does not take too much time, as a business owner, you do not want to waste a day or two to figure out the second best name for your company. It is always better to prepare in advance.
There you have it, things you need to know before forming a company. We hope the information can give you an overview about the costs you most probably will incur.
Head on our services to find out more about incorporation of company.
Find out more information about the COMPANIES ACT 1965.
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