Sdn Bhd is the most commonly incorporated type of company among the 8 types of business entities available in Malaysia, where an average of 3,900 local companies was registered each month in 2019. Since the implementation of the Companies Act 2016, the company incorporation requirement has been simplified according to several key updates. Here's how you can incorporate your company with the Companies Commission of Malaysia (SSM) as a Malaysian to start running your business in this country.
Eligibility to incorporate a Sdn Bhd company
It takes a minimum of 1 director and 1 shareholder to incorporate a company in Malaysia where the director and shareholder can be the same person. You need to fulfill the following criteria to be a director for a company:
- 18 years old and above
- residing in Malaysia
- not disqualified under Section 198 of the Companies Act 2016
Before incorporating a company, it is important to understand the roles of directors and shareholders to ensure that you carry out your responsibilities and protect your rights in the company.
Information and documents to prepare
There are several important information about your company that should be prepared in advance so that the company incorporation process can be smooth without missing information.
- Proposed company name(s)
- Business nature and description
- Business address and registered address
- Information of directors and shareholders
- Paid-up capital
Besides that, there are 2 documents that you need to prepare:
- IC for identity verification purposes.
- Authorization letter if your proposed company name contains controlled words or trademark.
The SSM charges an incorporation fee of RM1,010 (inclusive of tax). There is an additional fee if you engage with a company secretary to incorporate the company on your behalf.
Company incorporation through the MyCoID portal
It is possible to incorporate your company on your own without going through a third party by going through the MyCoID portal.
1. Account registration on the MyCoID portal
Register an account on the MyCoID portal as an individual user.
2. Account activation at the SSM counter
Upon activating the account through email, you will receive another email with instructions to validate your registration at the nearest SSM counter.
3. Login credentials received through email
After the SSM has activated your account, you will receive an email to create login credentials on the MyCoID portal.
4. Proposed company name search
To get started with the company incorporation process, go to the Direct Incorporation Application on the MyCoID portal homepage to carry out the name search by keying in the proposed company name that you want. * You will not be able to proceed if the proposed company name is taken, reserved by other people or contains prohibited words.
5. Enter other information under name search
To incorporate a Sdn Bhd, the following information should be selected under name search:
- Purpose: N - NEW INCORPORATION
- Type: S - LIMITED BY SHARES
- Company SubType: SDN. BHD.
6. Clarify your proposed company name in the Super Form
Next, you will be redirected to the Super Form where you will have to clarify the meaning behind the proposed company name. If the proposed company name contains names of states, controlled words or trademark, you will have to attach an authorization letter from the respective authority or owner.
7. Business code selection and description
Then, select a business code that is related to your business, and provide the description together with the registered address and business address of the company.
8. Directors and shareholders information
By default, you are automatically listed as a director and shareholder of the company, but you can add directors and shareholders in the next step. Besides that, state whether you have employees in the company under Information To Agency section.
9. Application submission
After reviewing the information on the preview page, submit the application and you will be redirected to the Transaction page.
10. Payment of incorporation fee
Pay the incorporation fee of RM1,010 (inclusive of tax) and get a transaction receipt.
11. Notice of Registration as proof of incorporation received through email
You will receive the Notice of Registration as proof of incorporation through email within 1 business day if your company has been approved by the SSM. A Certificate of Incorporation can be purchased with a prescribed fee if it is required. * You will be notified through email if the application is queried by the SSM. The application can be edited and resubmitted again.
Within 30 days of receiving the Notice of Registration, a company secretary should be appointed.
Should I incorporate the company myself or get a company secretary to do it for me?
It is possible to go through the entire company incorporation process, from creating a MyCoID account to receiving the Notice of Registration, all by yourself without external help. The SSM has all the necessary information regarding company incorporation on their website and their officers are helpful in answering questions that you might have. That being said, there are several obstacles you may face if you opt to incorporate your company by yourself:
Time and energy-consuming
It will take up a lot of time and energy to register a MyCoID account as you have to visit the SSM counter after activating your account through email for your identity validation. You would need to go through the SSM guidelines on naming your company and figure out the right business nature your company falls under. With a company secretary, you do not have to create a MyCoID account. Furthermore, they can advise you on selecting a company name and other information related to your company.
Lack of information about starting a company
Entrepreneurs starting their company for the first time go through a whole new learning process, encumbered by a lack of information on the internet. You might have questions about deciding on the initial paid-up capital of the company, adding directors or shareholders later on, and mandatory compliance to follow. A company secretary can clear up your doubts through a phone call or an in-person meeting. Hence, it is advisable to seek professional consultation to make sure the company incorporation process is smooth.
Mandatory requirement to appoint a company secretary
It is a requirement for all Sdn Bhd company to appoint a company secretary within 30 days of successful company incorporation. Hence, it is recommended to engage with a company secretary from the beginning of the company incorporation process to save yourself the hassle of validating your MyCoID account by yourself. Company secretaries in Malaysia normally charge a service fee of between RM500 to RM2,000 for Malaysian directors and shareholders, exclusive of the SSM's incorporation fee.
Company incorporation through Foundingbird
You can incorporate your company with the SSM fully online through Foundingbird. Here's how it can be done.
1. Create a Foundingbird account.
Create a secure Foundingbird account at onboarding.foundingbird.com to protects your data and gives you access to the information you have submitted.
2. Fill in and submit the incorporation form.
Provide the information about your business and company, such as:
- Proposed company name(s)
- Business nature
- Contact details
- Paid-up capital
- Directors and shareholders information
You can consult the company secretary if you are unsure of any information needed.
3. Make payment.
Foundingbird charges an incorporation fee of RM1,499, inclusive of the SSM fee worth RM1,010. Besides, our monthly company secretary fee is RM200 that covers all your company secretarial needs.
4. Receive an email to verify your identity.
All directors and shareholders will receive an email to carry out e-KYC for identity verification purposes. This is done by accessing the unique verification link sent to you and taking photos of your IC (front & back) and a selfie. Once all directors and shareholders have verified their identity, the company secretary will review your incorporation form and advise accordingly if changes are needed.
5. Receive an email to sign S201 declaration and letter of incorporation.
All directors will receive an email to sign 2 documents electronically:
- S201 declaration - to declare your eligibility as a director.
- Letter of incorporation - to confirm that all information provided is accurate.
6. Wait for the SSM approval of your company incorporation.
Your company incorporation application will be submitted to the SSM. It usually takes 2 to 3 working days for your company to get incorporated, subject to the SSM approval. You will receive the Notice of Registration and Certificate of Incorporation once your company is incorporated.