Malaysia

Starting a Business in

Malaysia

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Malaysia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2014.

Compare Malaysia to 188 other economies.

  • Standardized Company

  • Legal form: Sendirian Berhad (Sdn. Bhd.) - Private Limited Company
  • Paid in minimum capital requirement: MYR 0
  • City: Kuala Lumpur
No. Procedure Time to Complete Associated Costs
1 File necessary documents with the Companies Commission of Malaysia (SSM) one-stop shop
Agency: Companies Commission of Malaysia

Name search can be conducted online and payment can be made online.
Less than one day (online procedure) MYR 30 per name search application
2 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).
3 days on average MYR 1000
3 File necessary documents with the Companies Commission of Malaysia (CCM) one-stop shop and obtain company incorporation, tax registration, registration with the Employment Provident Fund (EPF), Social Security Organization and the Inland Revenue Board, 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 (CCM) one-stop shop and obtain company incorporation, tax registration, registration with the Employment Provident Fund (EPF), Social Security Organization and the Inland Revenue Board, as well as the post-incorporation package (company seal, share certificates and statutory books).

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 a copy of the letter from the CCM approving the name of the company have to be attached as well.
- The address or location of the registered office.

After the submission of the incorporation papers, the CCM 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

Since April 01, 2010 the authority for stamping of documents has been delegated to the CCM and entrepreneurs no longer have to go to the Inland Revenue Board (IRB). The stamp cost is RM 100 for the Memorandum and RM 100 for the Articles with a second set stamped at RM 10 each.
2 days on average MYR 1,000 (registration fee)+ MYR 200 (stamp) + MYR 75 (post-incorporation package)

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