WHY MALAYSIA?

Starting a business is an incredibly exciting endeavour, and Malaysia is one of the most promising places to pursue your business ideas, whether they are expansive or modest in scope.

In comparison to other nations, Malaysia offers an abundance of business establishment opportunities. The opportunities are limitless from an online business to a real estate enterprise.

Malaysia was ranked 24th by the World Bank in 2018’s Ease of Doing Business. Malaysian business is gaining significant traction as one of the best places to start a business in Malaysia and invest in a Malaysian business.

INCORPORATION OF A PRIVATE LIMITED COMPANY (PLC) / Sendirian Berhad (SDN BHD)

MANDATORY REQUIREMENTS TO FORM A SDN BHD COMPANY WITH SURUHANJAYA SYARIKAT MALAYSIA (SSM) / COMPANY COMMISSION OF MALAYSIA (CCM)

PAID-UP CAPITAL	REGISTERED ADDRESS	DIRECTOR
MINIMUM PAID-UP CAPITAL OF RM 1 IS REQUIRED TO INCORPORATE A LOCAL OR 100% FOREIGN-OWNED BUSINESS. THE COMPANY MAY INCREASE ITS PAID-IN CAPITAL AT ANY TIME TO MEET ITS NEEDS.	A REGISTERED ADDRESS WILL BE THE COMPANY SECRETARY’S ADDRESS AND WILL BE PROVIDED BY THE COMPANY SECRETARY’S FIRM. A REGISTERED ADDRESS IS NOT A BUSINESS ADDRESS AND THE COMPANY CAN’T USE A REGISTERED ADDRESS TO CONDUCT ITS DAILY BUSINESS ACTIVITY.	A MINIMUM OF 1 LOCAL MALAYSIAN DIRECTOR/ 1 FOREIGN DIRECTOR RESIDING IN MALAYSIA IS MANDATORY. THE DIRECTOR SHOULD BE A MINIMUM OF 18 YEARS OLD. IF THE COMPANY DOES NOT HAVE A LOCAL DIRECTOR OR THE DIRECTOR IS NOT RESIDING IN MALAYSIA, THE COMPANY CAN APPOINT A LOCAL NOMINEE DIRECTOR FOR THE TIME BEING TILL THE COMPANY FINDS A LOCAL DIRECTOR/PARTNER.

SHAREHOLDER	COMPANY SECRETARY
A MINIMUM OF 1 SHAREHOLDER IS MANDATORY TO REGISTER THE COMPANY. A FOREIGNER CAN HOLD 100% OF THE COMPANY’S SHARE. A COMPANY MIGHT NEED A LOCAL MALAYSIAN SHAREHOLDER DEPENDING ON THE COMPANY’S NATURE OF BUSINESS AND/OR APPLY FOR A BUSINESS LICENSE IF THE AUTHORITY REQUIRES A LOCAL SHAREHOLDER TO HOLD A SPECIFIC AMOUNT OF SHARES.	A MINIMUM OF 1 LICENSED CORPORATE SECRETARY IS NEEDED TO REGISTER THE COMPANY. THE SECRETARY MUST BE A LICENSED SECRETARY BY SSM OR OTHER PROFESSIONAL AUTHORITY RECOGNIZED BY SSM.

COMPANY INCORPORATION IN A STEP-BY-STEP PROCESS

1. Contact the Advisor

The majority of foreign investors are unaware of the company registration process. Therefore, they must retain the services of an experienced consultant who can assist with company registration in Malaysia. Remember that a competent consultant can save you money and time. Prior to registering a company in Malaysia, it is necessary to hire a competent consultant. KGM Advisory will help you to understand and process the incorporation smoothly.

• Fulfil the Incorporation Form and Document’s checklist

Before we proceed with the Incorporation, you need to prepare and provide us with a few documents. You can find the checklist of the documents HERE. If you are unable to get the checklist, feel free to CONTACT US for assistance at any time.

Once you have gathered the necessary paperwork, we will provide you with the Incorporation Form to complete.

• Name Reservation

Each business has its own identity and is known by its name. Therefore, company registration begins with name approval of the proposed business. As per company name policy, each business must use the abbreviation SDN. BHD. For Example, XYZ Sdn. Bhd.

Once we get all the documents and the Incorporation form from you, we will proceed to do the name reservation for your company. Usually, it takes a minimum of 1-2 working days to get the name approval.

• Appoint a Company Secretary

Once the name is approved, we will proceed with the incorporation by submitting the Director(s), Shareholder(s), and Company Secretary’s details.

• Incorporation is Done

Usually, the incorporation will take a minimum of 1-3 working days. Once the registration is done, we will notify you and send you all the official documents.

Now you are officially ready to start your own business.

OUR Package including

• We will check all the documents and the Incorporation Form. We will advise you accordingly if we required any additional documents
• We will check the availability of the name that you proposed to us.
• Completion of Name Approval
• Payment of SSM registration fees
• Preparing draft super form for clients’ final checking
• Appoint Director(s) and shareholder(s)
• Use KGM Advisory address as a registered address
• Appoint of First Company Secretary
• Board resolution Preparation for the bank account opening
• 2 sets of Full Set SSM documents with Secretary CTC
• Preparing the company rubber stamp
• Purchasing the Certificate of Incorporation (Section 17 in English Version)

FAQs – frequently asked questions

Can a foreigner register a company in Malaysia?

Yes. As a foreigner, you can register a 100% foreign-owned company in Malaysia with a minimum Paid-up capital of RM 1.

What are the Basic checklists to register a company in Malaysia?

• At least 3 Proposed company names
• Nature of business and Paid-up capital
• A Colour pdf copy of shareholder(s) and director(s) passport/ NRIC.
• Supporting documents like utility bills as proof of residential address
• Email address and contact number for all shareholders and directors.
• Filled up incorporation form and other documents (Will be advised by KGM Advisory)

Do I need a local nominee director to register a company?

A minimum of 1 Local Malaysian Director / 1 foreign Director who is residing in Malaysia is mandatory. If you are not residing in Malaysia as well as you do not have any Local Malaysian partner/Director, you can appoint a Nominee Director. KGM advisory can help you by providing Nominee Director Service

How long it takes to register a company?

A minimum of 3-5 working days.

Does KGM Advisory provide Nominee Director/Shareholder?

Yes. KGM Advisory provides the nominee director/shareholder service for the time being until you get the Local director from your end.

Can a foreigner open a company bank account in Malaysia with a tourist visa?

To open a corporate account, the physical presence of the Director is mandatory. Most of the banks required the work permit of the director to open a bank account. Few banks are quite flexible and can open a bank account without a work permit from the foreign director.

Can KGM Advisory help to open a corporate bank account?

Yes. KGM Advisory has a partnership with OCBC Bank, United Overseas Bank, and HSBC bank. KGM Advisory will prepare the needful documents for you and will recommend your company to the banker to open the corporate bank account. 

Can KGM Advisory give a guarantee to open a corporate bank account?

No. Opening of a corporate bank account is subject to approval by the bank authority only.

What are the requirements to register SDN BHD?

• Minimum one shareholder
• Minimum one director
• A licensed Corporate Secretary

Can a foreigner apply for a work permit under the company?

Yes. After registration, the company can apply for ESD registration which will allow the company to give work permits to foreign Directors or foreign staff. To apply for ESD company needs to increase its paid-up capital which is:

• For 100 % foreign shareholding company (If the nature of Business is Trading or Retail service) – Rm 1,000,000
• For 100 % foreign shareholding company – RM 500,000
• For 51% local shareholding company – Rm 350,000
• For 100% local shareholding company – Rm 250,000

Does a company require any license other than registration to run the business?

Yes.

• For Business Address (Physical Office/Shop) – Signboard and Premise License
• For Restaurant or retail shops- Wholesale Retail Trade License (WRT)
• For Export-import- Export Import permit
• For opening a Bar- Alcohol License
• For Manufacturing- Manufacturing License
• Others – Kindly Consult KGM Advisory to get more information.

Do I need to travel to Malaysia to Incorporate a company?

No. To register a company your physical presence is not necessary but to open a corporate bank account the Director(s) physical presence in Malaysia is mandatory.