Malaysia is one of the largest economies in South East Asia and currently ranked 38th in terms of the largest economy country in the world. Foreign Direct Investment has a significant influence on the economy of the country. The strategic location, competitive positing and excellent economy of the country, make it an attractive place for foreign companies.
On top of that, if you are seeking for a perfect destination to establish your business or existing branch of a company, Malaysia can be considered as a great choice. There are many businessmen, investors, and entrepreneurs who are moving to Malaysia because they found this country as a reliable destination where they can find potential customers for their business to earn more profits.
Malaysia- A Reliable Business Hub for Global Traders
Malaysia is known for its world-class infrastructure, stunning tourism heritage, mesmerizing cities, growing corporate office, etc. Apart from that, Malaysia offers a suitable corporate business environment, lowers taxes, security, stable GDP and economy. With all these positive features and aspects, Malaysia has now recognized the finniest country for global trading. As a result, more corporate giants are moving to the county to get more profitable business deals.
Steps of Company Registration in Malaysia
In Malaysia, foreigners are allowed to setup varieties type of company such as Limited Liability Company, Joint venture, 100% foreign owned company and many others. The registration of a company is not complicated if you know the procedures. The procedure of company registration may vary, which depends on the type of company.
The Companies Commission of Malaysia is the governing body which deals with the approval of registering a company in Malaysia. The registration of a company must be done through the certified company secretary. The registration steps of a Sdn Bhd company are shown below-
- Company Name Search
- Preparation of company registration documents.
- Signing the documents of the company by the directors and the shareholders.
- Submission of Forms that is- 24,44 and 49
- Submission of documents to SSM
- Collect the certificate of incorporation from SSM.
Company Name Search: Company name search is the initial step of Sdn Bdn company registration. The name search is done to check the availability of your proposed name. The name search can be done at the official website of the SSM. If the proposed name is available, it can be booked for a period of three to six months. It takes just a day to complete the entire procedure.
Documents Preparation & Submission: You need the necessary documents to proceeds your company registration to the next steps. The documents include – shareholders passport copy, local address and a copy of Article of Association.
Collect all the necessary FORMS from Company Commission of Malaysia and fill up the FORMS with appropriate information and submit the FORMS to the SSM.
Certificate of Registration: SSM will issue the certificate of registration upon the verification of registration documents. It will take around 5 to 6 business days to complete the verification process. Once the verification is done, you can collect the certificate from SSM.
Appointing a Company Secretarial
Formation of company in Malaysia required the appointment of company secretary. As a director of the company, you must designate a company secretary to handle the registration. The company secretary is one of the essential parts of a business- because they will deal with rule, regulation, code of ethics and guidelines during the process of company registration.
Opening Bank Account
In Malaysia, foreigners are not allowed to open a bank account in local banks. The opening of a bank considers more challenging than company incorporation. However, upon the terms and condition foreigner are permitted to open a corporate bank account in a foreign bank only.
To open a bank account, the directors of the company must be physically present in Malaysia and must deposit RM 500000 as paid up capital.
Malaysia is a leading economy in South East Asia. The GDP of Malaysia is growing at a steady rate which increases the business opportunities in the country. The Malaysian government is working on several areas of the business to attract more foreign direct invests. Some part of the company registration process is moved online, making it easier for foreign business entrepreneurs to register a company in Malaysia.