FLOW OF COMPANY INCORPORATION
Five Major Steps of Incorporation
There are standard procedures for a person who wishes to incorporate a company in Malaysia. Before we proceed with the procedure of incorporation, you must know that operating a company in Malaysia requires strict compliance with the requirements of the Companies Act 2016. Suruhanjaya Syarikat Malaysia (SSM) acts as a body for registering companies and businesses, and providing company and business information to the public.
1. Application of Name Reservation
Before incorporating a company, you need to ensure the availability of the names of the company. Each application of the name reservation requires the payment of a fee of RM50 to SSM. If SSM rejects the application, you need to conduct the process with another name again to obtain the acceptance of the SSM for your reservation of name. The application of the name of the company can also be done through Malaysia Corporate Identity Number (MyCoID) to register the company name.
There are a few categories for companies. The first type of company is a company limited by share. It is the most common type of the companies that operate in Malaysia. The liabilities of the members of the company are limited based on their shareholdings. Members do not have responsibility to pay for the company during the liquidation of the company. They only bear the part that they hold.
Second type of the company is company limited by guarantee which is mostly used by non-profit companies such as societies and clubs. There will be profits gained retained in the company. The profit will not be distributed to the members who are commonly known as shareholders of the company.
2. Completion of the Application Form
After obtaining the approval of the name reservation from the SSM, you are required to complete the application through MyCoID to complete the process. It may request the company information such as director, shareholders’ personal information and the company business type. It requires you to fill up all the information that was requested by the SSM.
3. Submission of the Application Form
After completing all the application forms of the incorporation, you should proceed to submit the application form to SSM and wait for the approval of SSM. SSM will ask for a registration fee of RM1,010 from you. After making the payment, it may take few days for SSM to approve the application.
Before the commencement of business, companies should obtain the permit or license for the particular businesses to prevent any breach of the Malaysia law. Companies should ensure that the company is in compliance with corporate compliance requirements such as EPF, SOCSO etc.
5. Successful Incorporation of the Company
If SSM approves the application of incorporation of a company, it will issue a Notice of registration to confirm that the company is officially incorporated. Also, the company need to appoint a company secretary within 30 days of incorporation and a standard Constitution.
Company secretaries have the responsibility to record the decisions made by directors and shareholders and annual reports. They manage the company’s important documents and keep the documents which are related to your company.
Why AL Account Management？
Our founder is Chartered Accountant with the Malaysian Institute of Accountants (MIA), member of Association of Chartered Certified Accountants (ACCA) and Company Secretary in Malaysia. Our dedicated professional team provides a comprehensive and professional service to your company based on your needs. We will provide the high quality of service from our professional team. For more information, please contact us by dropping us an email at [email protected].
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