(If you are still contemplating on the type of business vehicle to choose from, check out my article on -> How To Choose Suitable Business Entity)
Before I go into the registration process, it is standard practice in Malaysia to employ Certified Company Sercretary (such as myself – I paid myself for this paid advertisement) to incorporate a Private Limited Company (Sdn. Bhd.) on your behalf.
If you are a start-up, social enterprise or SME, you should not be spending anywhere beyond RM2700 for incorporation services for a company with RM400,000 authorised capital. I personally charge RM2550 – all in and you don’t even have to leave your house (it should take no more than 2-3 working days, my personal record is 24 hours). I’m telling you this as a benchmark because normally when you search for service provider, they will either Scenario 1 – charge beyond RM2700 or Scenario 2 – they claim that they charge the cheapest rate in town in the realm of RM1400 to RM1800 (sounds too good to be true right… because it is).
I am not saying that they are unscrupulous/evil Company Secretary, in fact most, if not all are reputable and excellent Certified Company Secretary. You must be thinking WTF dude this makes no sense!!! Truth be told its just a marketing strategy.
In Scenario 1 they will normally bundle up the incorporation service with other services such as accounting service, audit service and etc. (No happy ending, its not that kind of service)
In Scenario 2 they will only quote the actual Incorporation cost, but they will not mention the incidental cost such as Company Seal, Monthly Retainer, Minutes of First Annual General Meeting, Maintaining Register and Minute Book and etc. All this incidental cost will later on add up and will go in the realm of RM2400 to RM2700. So don’t get shocked or upset, because technically they did not lie, you just never bothered to ask.
It is up to you to decide on the best package for yourself, depending on your budget and stage of business.
That out of the way, how do you go about incorporating a Private Limited Company:
Private Limited Company (Sdn. Bhd.)
Go to Suruhanjaya Syarikat Malaysia (SSM) a.k.a Companies Commission of Malaysia (CCM) office or visit MyCoID Portal to DIY. But truth be told, eventually it will cost you about RM2250 to RM2500 for SSM incorporation package, so rather than having to waste time on the whole process, save yourself from all the trouble and get a Company Secretary to do it for you. At least then you get to choose your own Company Secretary rather than SSM choosing one for you.
WHAT INFORMATION DO YOU NEED TO PROVIDE?
- Name of proposed Company – prepare 3 names just incase your first choice is taken; (e.g.: LIGHSABER MANUFACTURING SDN BHD or DEATH STAR SDN BHD)
- Principal Business Activity – Min of 1 and Max of 3; (for this you will need to refer to MSIC Code)
- Photocopy of all directors’ & shareholders Identification Card or Passport – min of 2 person;
- Amount of paid-up capital (min RM2 or max RM2,500); and
- Percentage of shareholding of each shareholders.
Important Note: As soon as your Company is incorporated you will need to identify which bank you want to open your account and find out what are the documentation requirement. You will then need to inform your Company Secretary the documentation requirement, bank name and branch location to enable your Company Secretary to prepare the necessary paper work.
WARNING: Conducting business without registration is an offence which is punishable with fine not exceeding RM50,000.00 or imprisonment not exceeding 2 years or both. No doubt SSM got better things to do than hustling small timers but it means some organisation (such as bank) will not want to do business with you because you ain’t legit.