How To Close A Sdn Bhd Company In Malaysia

How to Register an SDN BHD in Malaysia: A Complete Guide for Entrepreneurs

If you're an entrepreneur planning to start a business in Malaysia, one of the first things you'll need to do is to register your business. In Malaysia, registering a business typically involves registering an SDN BHD (Sendirian Berhad), which is a private limited company. This structure is preferred by many business owners because it limits liability, offers more credibility, and allows for easier access to financing. In this article, we will walk you through the process of registering an SDN BHD in Malaysia, including key steps such as company incorporation, choosing a business name, and filing with the SSM (Suruhanjaya Syarikat Malaysia).

What is an SDN BHD?

An SDN BHD is the Malaysian equivalent of a private limited company. It is one of the most popular business structures in Malaysia for entrepreneurs and foreign investors alike. To register an SDN BHD in Malaysia, the company must have a minimum of one shareholder and one director. The business can be wholly owned by foreigners or Malaysians, but it must comply with the legal and regulatory requirements of the country.

Why Register an SDN BHD in Malaysia?

There are several reasons why registering a business in Malaysia as an SDN BHD is an attractive option:

• Limited Liability: Shareholders' liability is limited to the amount of their shareholding in the company, providing protection to personal assets.
• Credibility: Having a registered company lends credibility to your business, which is important when dealing with suppliers, customers, and financial institutions.
• Tax Advantages: A registered SDN BHD benefits from various tax incentives, exemptions, and deductions that are unavailable to unregistered businesses.
• Access to Financing: Registered businesses have better access to loans, grants, and investment opportunities.

Step 1: Choose Your Business Name

The first step in the company incorporation process in Malaysia is choosing a business name. Your company name is important because it will reflect your brand identity. However, before you proceed with registering your business name in Malaysia, there are a few rules to consider:

• The name must not be identical or similar to existing registered companies.
• It must not be offensive or violate any trademarks.
• The name should be unique and suitable for your business's industry.

You can conduct a name search on the official SSM online platform to check if your desired name is available. Once you’ve found a suitable name, you will need to submit it for approval from the SSM.

Step 2: Company Incorporation in Malaysia

Once you’ve decided on a business name, the next step is the actual company incorporation process. This can be done by submitting the required documents to the SSM. Below are the general steps involved in company incorporation in Malaysia:

1. Prepare Documents: You will need to prepare the following documents:

• Copy of identification (for directors and shareholders)
• Proof of residence (for directors)
• Company’s Articles of Association
• Company’s Memorandum of Association
• Signed consent letters from directors and shareholders

1. Submit to SSM: These documents need to be submitted to SSM either online via their official portal or through an authorized company registration agency in Malaysia.
2. Pay the Registration Fee: There will be a registration fee that varies depending on the size and capital of your company.
3. Receive Certificate of Incorporation: Upon approval, you will receive your Certificate of Incorporation, which officially registers your company as a legal entity in Malaysia.

Step 3: Register with SSM Malaysia

To register SSM in Malaysia, you will need to ensure that your company complies with the legal requirements outlined by the Companies Commission of Malaysia (SSM). The SSM is the regulatory body responsible for business registration and ensuring that companies comply with Malaysian business laws.

Once you’ve registered your business with SSM Malaysia, you will receive a registration number that serves as the official recognition of your business. This number is essential for opening a corporate bank account, applying for business licenses, and filing taxes.

Step 4: Register SSM Online Malaysia

Gone are the days when registering a business required lengthy paperwork and in-person visits. Now, you can register SSM online in Malaysia. This online service makes the entire process more convenient and efficient. Here’s how to do it:

1. Create an SSM Account: First, you’ll need to create an account on the SSM online portal. This will allow you to access various services, including company registration, updating company details, and submitting annual returns.
2. Fill Out the Online Application: Once your account is set up, you can complete the online application for company registration. The platform will guide you through each step of the process.
3. Upload Required Documents: You will be asked to upload the necessary documents, such as identification, proof of address, and other company details.
4. Pay the Fees: The payment for registration can be made through the online portal using secure payment methods.
5. Get Confirmation: After successfully submitting your application and payment, you will receive an email confirmation and your business registration number.

Step 5: Post-Registration Tasks

Once your company is officially registered with SSM, there are a few additional tasks to complete:

• Open a Corporate Bank Account: You’ll need a business account to handle your company’s finances. Make sure you choose a bank that offers services suited to your business needs.
• Get Business Licenses: Depending on the nature of your business, you may need additional licenses or permits. This can be checked with local authorities or industry-specific regulatory bodies.
• Register for Taxes: You will also need to register your company for tax purposes with the Inland Revenue Board of Malaysia (LHDN). This includes registering for Goods and Services Tax (GST), if applicable.

Step 6: Ongoing Compliance

After registering your business in Malaysia, it’s crucial to maintain ongoing compliance with Malaysian laws:

• File Annual Returns: Every year, your company must submit annual returns to SSM.
• Hold Annual General Meetings (AGMs): SDN BHD companies are required to hold AGMs and file minutes with SSM.
• Update Company Details: If there are any changes to your business, such as changes in directors, shareholders, or company address, you must update SSM records accordingly.

Why Use a Company Registration Agency in Malaysia?

While the process of registering an SDN BHD is straightforward, it can be time-consuming and complicated for first-time entrepreneurs. Hiring a company registration agency in Malaysia can save you time and ensure that your registration is handled efficiently and accurately. These agencies can help with:

• Name availability checks
• Preparation of required documents
• Submission of forms to SSM
• Advising on legal and regulatory requirements
• Handling post-registration tasks

Contact Info

A-12-05, Ekocheras Office Suites, No, 693, Jln Cheras, Batu 5, 56000 Cheras, Federal Territory of Kuala Lumpur

Email: [email protected]

Phone: +6011 3669 6823