How to set up a company in Malaysia?

Setting up a company in Malaysia involves several steps and procedures. Here is a general overview of the process:

Decide on the Type of Company:

Determine the type of business entity you want to establish. The common types are a private limited company (Sdn Bhd), sole proprietorship, partnership, or branch office of a foreign company.

Choose a Business Name:

Select a unique and appropriate name for your company. Ensure the name is not already registered by another company and doesn't violate any naming guidelines set by the Companies Commission of Malaysia (SSM).

Appoint Company Directors and Shareholders:

Appoint at least one director who is a resident of Malaysia. You can have 100% foreign ownership in most industries, but some sectors may have specific ownership restrictions.

Register with the Companies Commission of Malaysia (SSM):

Register your company with the SSM. You can do this through the MyCoID portal or by visiting the nearest SSM office. You will need to submit the necessary documents and pay the required fees.

Prepare Company Constitutions (Articles of Association):

Draft the company's constitution, which outlines the rules and regulations governing the company's internal management and operations.

Obtain Necessary Licenses and Permits:

Depending on your business activities, you may need specific licenses and permits from relevant authorities. Make sure you research and obtain all the necessary approvals before commencing operations.

Open a Business Bank Account:

After obtaining the necessary registration and licenses, open a business bank account in Malaysia for financial transactions.

Register for Taxation:

Register your company for taxation with the Inland Revenue Board of Malaysia (IRBM) to obtain a tax identification number.

Register with the Social Security Organization (SOCSO) and Employees' Provident Fund (EPF):

If you plan to hire employees, you must register with SOCSO and EPF as required by law.

Comply with Employment Laws:

Familiarize yourself with Malaysia's employment laws and regulations to ensure proper compliance when hiring employees.

Annual Compliance Requirements:

Keep track of the company's annual compliance requirements, such as filing annual returns, financial statements, and renewing licenses and permits.

Seek Professional Advice:

It is advisable to seek the assistance of a qualified company secretary or a professional service provider who can guide you through the entire process and help with the legal and regulatory aspects of setting up a company in Malaysia.

Please note that the specific requirements and procedures may vary based on the type of company and the nature of your business activities. It's essential to stay updated with the latest regulations from the relevant government authorities.