#

Ease of Doing Business in

Malaysia

Malaysia Download Profile (1830.6KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 30,331,007
GNI Per Capita (US$) 10,570
City covered Kuala Lumpur

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 23 22 down
1
78.11 78.18 down
0.07
Starting a Business 112 59 down
53
83.67 89.31 down
5.64
Dealing with Construction Permits 13 13
-
81.10 81.08 up
0.02
Getting Electricity 8 7 down
1
94.34 94.33 up
0.01
Registering Property 40 39 down
1
76.29 76.32 down
0.03
Getting Credit 20 29 up
9
75.00 70.00 up
5.00
Protecting Minority Investors 3 3
-
80.00 80.00
-
Paying Taxes 61 59 down
2
79.20 79.31 down
0.11
Trading across Borders 60 58 down
2
82.38 82.38
-
Enforcing Contracts 42 40 down
2
66.61 66.61
-
Resolving Insolvency 46 45 down
1
62.49 62.49
-

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 112

DB 2016 Rank: 59

Change in Rank: down53

DB 2017 DTF (% points): 83.67

DB 2016 DTF (% points): 89.31

Change in DTF (% points): down5.64

Standardized Company
Legal form: Sendirian Berhad (Sdn. Bhd.) - Private Limited Company
Paid-in minimum capital requirement: MYR 0
City: Kuala Lumpur
Indicator Malaysia East Asia & Pacific OECD high income
Procedure – Men (number) info_outline 8.0 7.0 4.8
Time – Men (days) info_outline 18.0 23.9 8.3
Cost – Men (% of income per capita) info_outline 6.2 19.0 3.1
Procedure – Women (number) info_outline 9.0 7.1 4.8
Time – Women (days) info_outline 19.0 23.9 8.3
Cost – Women (% of income per capita) info_outline 6.2 19.0 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 12.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Obtain husband's permission to leave the home

    Agency: Domicile

    According to Islamic Family Law, Art. 59(2)(b), the woman must obtain permission from her husband to leave her home.
    1 day no charge
    2

    Search and reserve company name at the (SSM) one-stop shop

    Agency: Companies Commission of Malaysia

    Since May 16, 2013, it is mandatory to conduct company name search and reservation online via MyCoID portal http://ww1.ssm-mycoid.com.my/omni/omni/portal/mycoid
    Less than one day (online procedure)
    MYR 30 per name search application
    * 3

    Company Secretary prepares the company incorporation documents

    Agency: Companies Commission of Malaysia

    A company secretary is required to prepare the incorporation documents and provide a statutory declaration of compliance (Companies Act 1965).

    After the name reservation application has been approved by the Companies Commission of Malaysia (“CCM”), the company secretary would need to prepare the incorporation documents as follows and thereafter lodge the same over the counter of CCM in person:

    (i) Memorandum and Articles of Association (“M&A”)
    (ii) Form 48A (Statutory Declaration by A Person before Appointment as Director, or by A Promoter before Incorporation of Corporation)
    (iii) Form 6 (Statutory Declaration of Compliance by the Company Secretary)
    (iv) Form 24 (Return of Allotment of Shares)
    (v) Form 49 (Return Giving Particulars in Register of Directors, Managers and Secretaries and Changes of Particulars)
    (vi) Form 44 (Notice of Situation of Registered Office and of Office Hours, and Particulars of Change)

    Since the implementation of the MyCoID online portal, for incorporation of private company limited by shares whereby all the initial subscribers are individual shareholders, the preparation and submission of the incorporation documents are mandatory required to be done via the MyCoID online portal. Upon the approval of the name search application, the company secretary, who has the access to the MyCoID online portal, only needs to enter the relevant information and particulars required by the online portal and is not required to prepare any incorporation document (save for the Form 48A as explained below) or upload any incorporation document into the online portal. Within one or two working days upon the complete submission of the information and particulars required by the online portal, an electronic copy of the Certificate of Incorporation of Private Company (Form 9) issued by CCM evidencing that the company has been duly incorporated will be generated by and can be downloaded from the online portal. In addition, the online portal will also generate an electronic copy of all the incorporation documents mentioned above, i.e. the M&A (which is a standard boiler-plate M&A), Form 48A, Form 6, Form 24, Form 49 and Form 44 for the company secretary’s record and the same will also be available in CCM’s database for public searches.

    Please note that in respect of the Form 48A which is a statutory declaration to be signed by the director, notwithstanding that the physical signed Form 48A is not required to be uploaded into the online portal, the online portal will require the company secretary to confirm that the Form 48A has been duly executed by the director and hence, the company secretary will still need to prepare the Form 48A for the director’s execution.

    Please note that if any one of the initial subscribers is a corporate entity and not individual shareholder, the preparation and submission of all the incorporation documents are not possible to be done via the MyCoID online portal (not allowed by the system of the online portal) and the company secretary will still need to prepare and submit all the incorporation documents over the counter of CCM in person.
    between 1-3 days, simultaneous with previous procedure MYR 1,000
    4

    File necessary documents with the Companies Commission of Malaysia (CCM) one-stop shop and obtain company incorporation as well as the post-incorporation package (company seal, share certificates and statutory books)

    Agency: Companies Commission of Malaysia

    File necessary documents with the Companies Commission of Malaysia (SSM) one-stop shop and obtain company incorporation, Promoters must pay the registration fee and file the following incorporation documents with the Companies Commission within 3 months of name reservation:

    - The memorandum and articles of association and the statutory declaration of compliance (Form 48A) (prepared by a lawyer or the company secretary).
    - The particulars of (a) two subscribers holding a minimum of one share of MYR 1 each and (b) At least two directors who have their principal or sole place of residence in Malaysia.
    - The original Form 13A and the approval from SSM about the name of the company have to be attached as well.
    - The address or location of the registered office.
    - The Declaration of Compliance (Form 6)
    - A copy of identity card of each director and company secretary

    After the submission of the incorporation papers, the SSM issues Form 9 (certificate of incorporation) upon lodging the relevant documents.

    The registration fee for the authorized share capital is charged the following scale and is payable to the Companies Commission:
    - For registration of a company whose nominal share capital does not exceed MYR 400,000: MYR 1,000.00
    - For registration of a company whose nominal share capital exceeds MYR 400,000 but does not exceed MYR 500,000: MYR 3,000.00
    - For registration of a company whose nominal share capital exceeds MYR 500,000 but does not exceed MYR 1 million: MYR 5,000.00
    - For registration of a company whose nominal share capital exceeds MYR 1 million but does not exceed MYR 5 million: MYR 8,000.00
    - For registration of a company whose nominal share capital exceeds MYR 5 million but does not exceed MYR 10 million: MYR 10,000.00
    - For registration of a company whose nominal share capital exceeds MYR 10 million but does not exceed MYR 25 million: MYR 20,000.00
    - For registration of a company whose nominal share capital exceeds MYR 25 million but does not exceed MYR 50 million: MYR 40,000.00
    - For registration of a company whose nominal share capital exceeds MYR 50 million but does not exceed MYR 100 million: MYR 50,000.00
    - For registration of a company whose nominal share capital exceeds MYR 100 million: MYR 70,000.00

    If the application is submitted online through Mycoid, there is a processing fee of RM10.00.
    2 days MYR 1,000 (registration fee)+ MYR 200 (stamp) + MYR 75 (post-incorporation package) + MYR 10 (online processing fee)
    * 5

    Open a Bank Account

    Agency: Bank

    In order to register for GST, companies must open a bank account.
    1 day (simultaneous with previous procedure) no charge
    6

    Register for Goods and Services Tax

    Agency: Royal Malaysian Customs

    Goods and services tax ("GST") at the rate of 6% will be imposed in Malaysia with effect from 1 April 2015 and it will replace the current sales tax and service tax regime.

    Under the Goods and Services Tax Act 2014 ("GST Act"), GST shall be charged on:

    (i) any supply of goods or services made in Malaysia where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him; and

    (ii) any importation of goods into Malaysia.

    GST is implemented and enforced by the Director General of Customs and Excise and the Royal Malaysian Customs and Excise Department (“Customs”), which implement and enforce indirect taxes. It is a broad-based consumption tax that will virtually apply to every supply of goods or services, unless they are zero-rated, exempted or out of scope. Further, under the GST regime, a taxable person is also required to, amongst other things:

    (i) when charging GST, issue a tax invoice showing, amongst others, the amount of GST and the price of the supplies separately;

    (ii) where the output tax exceeds the input tax, remit the difference to Customs;

    (iii) submit GST returns to Customs at the prescribed time and comply with all other GST reporting requirements; and

    (iv) keep all business and accounting records relating to GST transactions in the National Language or English for a period of 7 year


    In order to register for GST the company needs to submit the following with the GST -01 form:

    - Business Registration Number;
    - A valid email address;
    - Total Taxable Supplies;
    - Industry codes;
    - Bank account information.
    14 days no charge
    * 7

    Register for income tax and PAYE

    Agency: Inland Revenue Board of Malaysia (LHDN)

    After completing the application for the certificate of incorporation and obtaining the MyCOID number, an applicant can register for the income tax number and PAYE through the web-porta: e-daftar.hasil.gov.my or in person. In addition to filling in all the particulars of the company, the company is required to submit the following attachments:

    - Certificate of Incorporation of Company (Form 9)
    - Reterun Giving Particulars in Register of Directors, Managers and Secretaries and Change of Particulars (Form 49)
    1 day (simultaneous with previous procedure) no charge
    * 8

    Register for the Employees Provident Fund

    Agency: Employees Provident Fund (KWSP)

    According to Section 41 (1) of the EPF Act 1991, an employer must register with the EPF within 7 days from the date the employer becomes liable to contribute, that is as soon as an employee is hired. In order to register with the Employee Provident Fund, an applicant must file the Employee's registration application form (KSWP 1 (MAJ)) with the EPF counter/kiosk and to obtain i-Akaun (i-Account) Activation Code using the Form KWSP 1 or KWSP 1(i). The form is required to be submitted together with the following supporting documents:-
    1. Form KWSP1;
    2. A certified copy of identity card/passport of director's /authorised person;
    3. A certified copy each of the Forms 9 and 49; and
    4. A cheque or bank draft for first month EPF contribution, if applicable.

    Upon the submission of the above documents, EPF will issue the Certificate of registration of Employer and given the i-Akaun Activation Code to the authorised system administrator registered in the Form KWSP 1 or KWSP 1(i). The Company is required to activate the i-Akuan within within 30 days using the 6 digits Activation Code.

    Thereafter, employer can submit the monthly EPF contribution form through i-Akaun and register a new employee. Employer's Registration Certificate is to be exhibited at the employer's premise
    1 day (simultaneous with previous procedure) no charge
    * 9

    Register for social security

    Agency: Social Security Organisation (SOCSO- Perkeso)

    Registered employers through MyCoID are required to submit their registration forms together with supporting documents to SOCSO
    - Employers are required to attach the supporting registration documents in accordance with the business entity type.
    -Employers registering employees earning more than RM3,000 per month and not contributing before but opting to contribute must fill in Option Notice and signed by both employers and employees under mutual concensus.
    -Employers must ensure that details such as identification card number is included in Form 2 (Employee Registration Form) and correct against the employee’s identification card. Failure of which will cause the employee being unable to register and contribute, as there will not be any record once checking is done against National Registration Department database



    1 day (simultaneous with previous procedure) no charge

    * Takes place simultaneously with previous procedure.

    Applies to women only.