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Incorporation Procedure:

  • Name Search and Application of Name
  1. This step can be done in 2 ways:
  2. Direct incorporation (name reservation and incorporation process together)
  3. Name reservation (reserved for 30 days long, each name costs RM50)
  • Lodgment of Application to Incorporate the Company
a. Name of the proposed company

    • Research required
    • Come out with minimum 3 ideal names for backup purpose

b. Status of whether the company is private of public

    • Differences between private and public company are listed below

c. Incorporation of business:

    • Sole Trader
    • Partnership
    • Sdn Bhd
    • Differences between the natures of business are listed below)

d. Proposed registered office address for registration

    • For Cheng & Co’s client, we provide the registered office address.

e. Name, identification, nationality and the ordinary place of residence of:

    • Member of the company
      • If the person in another body corporate, provide the place of incorporation, registration number and the registered body of the corporate.
    • Every person who is to be appointed as a director
    • Every person who is to be appointed as a secretary (Cheng & Co provide 2 company secretaries for the company)
    • For 100% foreign investments, please ensure that at least one director resides in Malaysia (residential address is required). If you do not fulfil this requirement, you can choose to use nominee director services.

f. A company limited by shares:

    • Provide details of class and number of shares to be taken by a member

g. Any other required documents.

  •  Incorporation Fee
  1. A company limited by shares – RM1,000 (registration fees for CCM)
  • Verification of Incorporation
  1. Notice of approval will be issued at this stage
  2. A certificate of incorporation will only be issued by SSM upon request together with the prescribed fee.
  • Post Incorporation
  1. Apply for other required

 

Extra Information:

Table 1

Private Company (Sdn Bhd)

Public Company (Bhd)

Financial Reporting Standard

Lesser requirement Stricker Standard in Comparison with Sdn Bhd

Number of Shareholders

Maximum 50 Shareholders Unlimited Shareholders

Transparency of Financial Information Flow

Internal review only Clear Financial Status, as it will be disclosed to the public

Availability of Shares

Prohibited to open shares to the public The public can buy the shares

Number of Residences in Malaysia

At least one (1) director needs to reside in Malaysia At least two (2) directors need to reside in Malaysia

Company Accounts

(Annual Financial Statement and Reports)

The accounts must be done within 30 days from the day the accounts are circulated to the members (within 6 months from the end of its financial year). The accounts must be lodged with the ROC within 30 days from its general meeting (AGM).

 Table 2

 

Sole Trader

Partnership

Company

Legal Liability

Personally liable

(Unlimited liability)

Personally liable

(Unlimited liability)

Not personally liable

(Limited liability)

The Standard for Accounting and Audit 

Do not require external accounting and audit Do not require external accounting and audit External accounting and audit required

Capital

Own Capital Partners’ Capital Share Capital

Controls of the Firm

Sole Trader alone Partners Board of directors

Number of Shareholders/Partner

Sole Trader alone 2 to 20 partners Minimum 1 to 50 shareholders

Company Secretary

Do not require Do not require Qualified secretary

Click the “Enquiry of Start-up Business Plan” to know the quotation of your customized plan.

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