{"id":232,"date":"2023-03-20T12:11:51","date_gmt":"2023-03-20T04:11:51","guid":{"rendered":"https:\/\/foundingbird.com\/?p=232"},"modified":"2023-04-12T02:45:15","modified_gmt":"2023-04-11T18:45:15","slug":"differences-between-companies-act-1965-and-2016-important-for-sdn-bhd","status":"publish","type":"post","link":"https:\/\/foundingbird.com\/my\/blog\/differences-between-companies-act-1965-and-2016-important-for-sdn-bhd","title":{"rendered":"8 key updates of the Companies Act 2016 for SMEs in Malaysia"},"content":{"rendered":"

Taking effect on 31st January 2017<\/a>, the Companies Act 2016 was established by the Companies Commission of Malaysia (SSM)<\/a> to replace the Companies Act 1965, with several key updates to benefit SMEs greatly such as lowering the minimum requirements for the company incorporation of a Sdn Bhd<\/a> and simplifying the mandatory compliances<\/a> that a Sdn Bhd has to follow. These are the 8 key updates you need to know as an entrepreneur planning to incorporate and run a Sdn Bhd in Malaysia.<\/p>\n

Digitalized application process for company incorporation<\/h2>\n

Instead of manually filling in the required forms downloaded from the SSM website, entrepreneurs can now incorporate their Sdn Bhd online by filling in the Super Form on the MyCoID 2016 portal<\/a>. Here's the Malaysian's guide to Sdn Bhd company incorporation<\/a> using the MyCoID portal for your reference.<\/p>\n

Reduced number of directors required<\/h2>\n

Prior to the Companies Act 2016, a Sdn Bhd required at least 2 directors to register. Today, only 1 director, regardless of his or her nationality, who is residing in Malaysia that fulfils the requirement is needed to incorporate a Sdn Bhd. The director can also act as the sole shareholder that owns 100% shares of the Sdn Bhd.<\/p>\n

Changed document for evidence of incorporation<\/h2>\n

Instead of a Certificate of Incorporation, a Notice of Registration will be issued as soon as the Sdn Bhd incorporation is approved by the SSM. You can still purchase the Certificate of Incorporation for the purpose of opening a business bank account, applying for business loans and other processes that require the certificate.<\/p>\n

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Simplified process for the execution of documents<\/h2>\n

As it is no longer mandatory for Sdn Bhd to have a common seal in the Companies Act 2016, the execution of documents can be done by either one of the options below:<\/p>\n