Congratulations! You are now ready to start operating as a business – what are the steps?
Choose a company secretary (CS) and get the CS to do a name search and secure approval. Send the name of the proposed company together with the names and Identity Card nos /Passport nos. of 2 shareholders or directors. Shareholders can use nominee directors – please ask for details if you need this service. If you are considering a corporate shareholder, you must submit their business registration cerfiticate.
The standard time frame for the name approval is 5 days from the date of submission of name searches but can take up to 7 working days.
When the company’s name has been approved, inform your CS about the structure of the equity i.e. the total paid up capital and who owns how many % of the shares. The minimum paid up capital required is RM2.00.
You can choose to have 100% foreign ownership, but there must be a minimum of 2 resident directors; any expatriate having a work permit in Malaysia is considered a resident and will qualify as a local director.
Let your CS know what the total paid up share capital is. The fee for incorporation covers stamp duties when the total paid up capital is up to RM100,000.00 (one hundred thousand RM). Above that amount, separate stamp duties will apply
To prepare the documents for incorporation, submit clear photostat copies of all the shareholders of the company for filling in the neccesary forms, as well as the other directors and shareholders if more than the 2 names that have been submitted for the name search.
The SSM’s client charter states that it will have a company number out within 3 working days but our experience tells us that 3 working days is workable only if the officers are efficient and no unforeseen circumstances like the SSM server being down and interrupted. We will submit within 1 day of receiving your complete documents as we will need to stamp the M& A and hopefully your company number can be out in 3 working days after that We hope that we have assisted you in understanding the mechanics of company formation.
As for the cost, a deposit of RM800 is required to begin the name search and the balance is payable upon receipt of signed post-incorporation documents but before submission.
Amanda Gorter, Company secretary
tel : 6-03-78044684 fax : 6-03-20969058