Setting up a private limited company in Malaysia can be a complex process, but it is essential for entrepreneurs who want to start a business in this country. A private limited company is a type of business entity commonly chosen by many entrepreneurs in Malaysia because it offers limited liability protection to the owners and has a separate legal identity from its owners.
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They provide services to register private limited companies in Malaysia and can assist you in choosing a suitable name for your company, conducting the necessary name search, preparing the company’s constitution and Memorandum and Articles of Association (M&A), and obtaining the necessary business licenses and permits for your private limited company.
How to Register Private Limited Company in Malaysia
The steps to register a private limited company in Malaysia are as follows:
Step 1: Choose a Name for Your Company
The first step to registering a private limited company in Malaysia is to choose a unique name for your company. The name must not be identical or similar to any existing company in Malaysia. You can check the availability of your desired name by conducting a company name search on the Companies Commission of Malaysia (SSM) website.
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Step 2: Appoint Directors and Shareholders
The next step is to appoint directors and shareholders for your company. A private limited company in Malaysia must have at least one director and one shareholder, who can be the same person. The directors must be Malaysian citizens or permanent residents.
Step 3: Prepare the Company’s Constitution Memorandum and Articles of Association (M&A)
The company’s constitution outlines the rules and regulations governing the company’s internal affairs, while the Memorandum and Articles of Association (M&A) define the company’s objectives and activities. The directors and shareholders must prepare and sign these documents before registration.
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Step 4: Register Your Company with the Companies Commission of Malaysia (SSM)
The next step is registering your company with the Companies Commission of Malaysia (SSM). You can submit your application online or at any SSM office. The following documents are required for registration:
Form 9 (Application for Registration of a Company)
Form 24 (Return of Allotment of Shares)
Form 49 (Return Giving Particulars in Register of Directors, Managers, and Secretaries)
You will also need to pay the registration fees, which depend on your company’s authorized capital.
Step 5: Obtain Business Licenses and Permits
Depending on the nature of your business, you may need to obtain additional licenses and permits from relevant government agencies, such as the Ministry of International Trade and Industry (MITI), the Department of Environment (DOE), or the Ministry of Health (MOH).
onecompany.my can assist you in obtaining the necessary business licenses and permits for your private limited company.
Step 6: Open a Bank Account and Register for Taxes
Once your private limited company is registered, you must open a bank account and register for taxes, such as the Goods and Services Tax (GST) and the Income Tax. You can open a bank account with any commercial bank in Malaysia.
Step 7: Apply for Director Identification Number (DIN)
All directors of a private limited company in Malaysia must apply for a Director Identification Number (DIN) from the Companies Commission of Malaysia (SSM) before registering their company. This can be done online through the MySME portal or by submitting a manual application form to any SSM office.
Step 8: Obtain Approval for Your Company’s Name
After applying for your private limited company registration, you must obtain approval for your company’s name from the Companies Commission of Malaysia (SSM). This usually takes around three days, and you can check the status of your application through the SSM website.
Step 9: Obtain Your Company’s Incorporation Certificate
If everything goes well, the Companies Commission of Malaysia (SSM) will issue an incorporation certificate within 14 working days after the successful completion of all the necessary processes. The certificate confirms the successful registration of your private limited company in Malaysia.
Step 10: Comply with the Statutory Requirements
After obtaining your company’s incorporation certificate, you must comply with the statutory requirements, such as maintaining proper accounting records, holding annual general meetings, and filing annual returns with the Companies Commission of Malaysia (SSM). Failure to comply with these requirements may result in penalties or legal action.
Overall, registering a private limited company in Malaysia is not a difficult task. It can be done quickly and efficiently with the help of an experienced lawyer or accountant. There are several steps that must be taken to ensure the correct registration process is followed, including selecting a business name, submitting documents to SSM, and getting approval from the relevant authorities.
After these steps have been completed, your business will be officially established as a private limited company in Malaysia according to Malaysian law.
How many types of companies are available in Malaysia?
There are mainly six types of companies available in Malaysia. These six types of companies are as follows:
1. Sole proprietorship
2. Private Limited Company (Sdn. Bhd.)
3. Limited liability partnership (LLP) or Partnership
4. Public Limited Company (Berhad)
5. Non-Profit Organization
6. Foreign Company
What is a private limited Company?
Private Limited Company (Sdn. Bhd) is a legal entity guaranteed by the share. Shareholders’ liabilities are limited by the amount of shares they hold. As a legal entity, the company can be a borrower or defaulter, hold assets or invest assets, and sue in the court. Technically, investors can limit their business liability by incorporating a private limited company. If you want to open up a business in Malaysia, you should limit business liability as a smart decision-maker.
What is a local ownership private limited company?
Local ownership private limited company is a company in which all shareholders or members are Malaysian citizens. A company with all local shareholders can enjoy better facilities than joint ventures between a local or foreigner or a full foreigner ownership company.