4 Steps to Form a Private Company
You’ve decided to incorporate a Sdn Bhd company? Congratulations and we are excited to guide you through the process achieve your objectives. The series of steps are as follows:
Step 1: Meet and Speak with Us
That’s right. It starts with your first call to us. You’ll meet with us, and tell us everything about what you have in mind. You’ll also provide us with all details and documents pertinent to the application.
Step 2: Sign and Return Our Quotation
After Step 1, we’ll review your request, and issue you a quotation, listing our price. If you agree, you’re to sign and return the quotation to us.
Step 3: Settle Your Application
After Step 2 is done, we’ll help you prepare your forms and supporting documents, and submit them to SSM, along with settling all applicable application fees.
Step 4: Settle Everything Else
Once your application is approved, you’ll need to appoint a company secretary within 30 days. Furthermore, you’re advised to get all other business licenses needed before your company begins operating. If you’d like, we could help you with those as well.
How is pricing determined for this service?
The fee for incorporating a Sdn Bhd company, subject to SST, is dependent the amounts payable for statutory fees to SSM, charges for name search on directors/shareholders, and also on our service to help you draft a company’s constitution. The company’s constitution is optional. The fee will also include services for getting business licenses, if you request for them.
The entire process can be done within 3 working days!
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Frequently Asked Questions
How does the incorporation of a Sdn Bhd company actually works?
Essentially, the process of incorporating your Sdn. Bhd. company is a series of submissions and approvals.
The process for incorporating your Sdn. Bhd. company can be broken into the following steps:
2. incorporation; and
Step 1: Pre-incorporation (i.e., naming your company)
Before you may apply for incorporation, you’ll need to submit a proposed name for your company to SSM. This is known as name reservation. SSM will then check the proposed name against relevant criteria. If approved, either you may place your application for incorporation; or, if you had already attached your application for incorporation together with your name reservation, also known as direct incorporation, your application will be passed on for processing.
If you haven’t attached your application for incorporation to your name reservation application, once your name reservation application is approved, your proposed name will be automatically reserved for the next 30 days. If you wish to extend the deadline, you may do so for another 30 days at a fee of RM50, and again for the same amount of fee up until 180 days (maximum) in total.
Step 2: Incorporation (i.e., placing your application for incorporation)
Your application for incorporation, together with applicable fees paid, must include the following:
a) details such as:proposed name for the company;
– whether your company will be a private or a public company;
– the proposed type for business;
– your company’s registered office address;
– your company’s business address;
– details on director(s), shareholder(s) and promoter(s) (including NRIC or passport); and
– a declaration from the director(s) or promoter(s) that they:
— are not undischarged bankrupts in or out of Malaysia; and
— have not been convicted of any offence in or out Malaysia.
b) declaration of compliance; and
c) supporting documents such as:
– consent letters from any body corporates that are named as members of company;
– certificates of directors’ qualifications, if required; and
– consent letters from any other regulatory agencies.
Step 3: Post-Incorporation (i.e., officially registering your company)
SSM will check your submitted application, and, if approved, will issue a Notice of Registration (also known as Section 15) via email.
At that point, you’ll need to sort out the following:
a) apply to get your copy of your company’s Certificate of Incorporation;
b) appoint or name the company secretary for your company within 30 days from the date of incorporation;
c) complete the registration of your company.
In addition, you are encouraged then to get all of your
The entire process should take 1-3 working days, depending on how fast you submit all relevant documents and how quickly SSM be able to process the your application.
What can I expect if I register as a Sdn. Bhd. instead of as a sole proprietorship or partnership?
Firstly, sole proprietorships and partnerships in Malaysia are for Malaysians only. If you’re a foreigner and you wish to set up shop here, you’re only option is to incorporate a company, whether it be Sdn. Bhd. or otherwise.
Secondly, when compared with the other two forms of entities, as a shareholder of your Sdn. Bhd., you may enjoy limited liability. This means that your liability to pay for your Sdn. Bhd.’s debts is limited only to your holding in your company. It’s possible for creditors to file a lawsuit against you personally to demand repayment of debts, and this applies if you also ran the company, and that you pledged yourself to the debts. However, by default, your liability is limited to your holdings only. Therefore, any assets that you own outside of your Sdn. Bhd. cannot be claimed by the creditor, only because you’re a shareholder.
Lastly, your sole proprietorship only has you for an owner, whilst your partnership can have only up to 20 partners at one time. A Sdn. Bhd. allows you to have only up to 50 shareholders.
Will I gain more if I set up as a Sdn Bhd right now, instead of setting up as a Bhd?
Most people begin incorporating as a Sdn Bhd before later changing to a Bhd.
How much effort and money will it cost to me to maintain my Sdn Bhd?
At the very least, you’ll have to submit to the following entities:
– annual returns
– audited annual financial statements;
-several tax return annually.
The is made up of the fees that you must pay respective entities and also us for services rendered in helping you making the submissions. We advised to schedule an appointment with our representative to get an exact figure for your case.
What is the difference between registered and business address?
A registered office is merely an office address on record where all communications, notices, and documents may be forwarded to. It’s common practice for companies to have their company secretary’s address as the registered office address because Companies Act 2016 requires that statutory documents such as annual submissions be kept in the registered office.
A business address is any location that your business has its office. Whilst registered office address cannot change without following rules and procedures laid out by SSM, you may locate your business address anywhere you wish.
What is the Declaration of Compliance?
The Declaration of Compliance is made by whoever is responsible for the incorporation that he or she has complied with all requirements set out in Companies Act 2016.
How does the naming process work?
According to SSM’s Guidelines on Naming a Company, You submit the name of your choosing to SSM. SSM will check the proposed name against a set of criteria laid out in the Guidelines. If the name does not contravene SSM’s requirement, then the proposed name will be said to be available for registration. If it does violate an rules in the Guidelines, the application will be rejected. You may then re-apply with another proposed name, or make an appeal to KPDNHEP by submitting it in writing and paying the appropriate fee to SSM.
What is the current incorporation fee?
Currently, the incorporation fee for any company limited by shares stands at RM1,000. For more information, you may visit the table of fees in the the SSM website.
What is the difference between incorporating my foreign company and incorporating a local subsidiary?
According to SSM’s Guidelines on Incorporating a Foreign Company, the incorporation fee payable depends the paid-up share capital amount with the lowest being RM5,000 for companies with not more than RM1 million paid-up share capital. If you were to incorporate a local subsidiary instead, the incorporation fee would be RM1,000.
What constitutes a qualified company secretary?
A qualified company secretary must be registered and have received a practicing certificate from SSM.