The process of company registration in Malaysia requires following a series of steps. Commencing this procedure involves the business owner submitting an application for the company’s registration to the Registry of Companies. Subsequently, a waiting period ensues before the application advances to the Ministry. The final stage culminates with the submission of a certificate of completion, formally endorsed by the Legal Representative. In this blog, we shall aim to explore the documents required for registering a company in Malaysia.
Types of Business Incorporations in Malaysia
Before going into the documents required for registering a company in Malaysia, let us look at the options for business in Malaysia:
Sendirian Berhad (Sdn Bhd) or Private Limited Company
Sendirian Berhad, commonly known as Sdn Bhd, is a form of private limited company in Malaysia that undergoes registration with the registrar of companies. This business structure operates as a company limited by shares, with a maximum of 50 shareholders. In an Sdn Bhd (Sendirian Berhad), the shares are not publicly traded or available. Each shareholder is required to contribute capital to the company according to their proportional shareholding. The contribution is subtracted from the shareholder’s shareholding until the specified amount is fulfilled. The remaining sum is then distributed equally among all other shareholders. This process ensures that each shareholder contributes and maintains their financial commitment to the company in proportion to their ownership stake.
Berhad (Bhd) or Public Limited Company
Berhad (Bhd), also known as a Public Limited Company, operates under Malaysian law and offers limited liability to its shareholders. The primary objective of a public limited company is to provide dividends to its shareholders, typically in the form of capital gains. Such companies are generally owned by one or more entities referred to as the ultimate holding capacity. The ultimate holding capacity shares an equal shareholding with all other shareholders in the public limited company.
Limited Liability Partnership
A Limited Liability Partnership is a business entity that affords the same level of limited liability protection as a corporation. In an LLP, the general partners assume personal liability for partnership obligations up to the extent of the investments or debts they have personally guaranteed under their personal guarantee agreement. The liability is limited to the capital contributed by each partner.
Sole Proprietorship
Sole Proprietorship is a legal business entity where a single individual owns and manages the business and also here in this, there is no distinction between the business and the individual owner. The sole proprietor assumes complete liability for the business’s debts and operations. This type of business is suitable for various ventures, particularly those that do not necessitate a substantial amount of capital to initiate.
Unlimited Company
An unlimited company is another type of business structure in Malaysia. In such type of company, there is no limit to the liability for all the owners bear for the company’s debts. Each shareholder is personally responsible for the company’s financial obligations. This structure provides less protection against personal liability compared to other business forms that offer limited liability.
Documents Required for Registering a Company in Malaysia
When registering a company online in Malaysia with government assistance, several essential documents required for registering a company in Malaysia have to be submitted. Mentioned here are the documents required for registering a company in Malaysia:
1. Certificate of Incorporation Copy:
One of the essential documents required for registering a company in Malaysia is a copy of the CoI, which serves as the official document confirming the formation and registration of the company.
2. Certified Copy of Company’s Registration:
A certified copy of the company’s registration document, providing additional verification of the company’s legal status.
3. Certified Copy of Memorandum of Association:
The MOA outlines the company’s objectives, scope of operations, and internal regulations. A certified copy of this document is required for the registration process.
4. Filled Forms 13A, 79, and 80:
Among the key documents required for registering a company in Malaysia are forms 13A, 79, and 80, as mandated by the regulatory authorities. These forms contain essential details about the company’s structure, directors, and shareholders.
5. Copy of Company Name Approval Document:
A copy of the document issued by the Companies Commission of Malaysia (SSM) confirming the approval of the chosen company name.
6. Articles of Association:
Submission of the Articles of Association, which define the internal rules governing the company’s management and operations.
7. Business Plan:
Submission of a business plan that details all the company’s goals, and financial projections. This document gives information about important things like the viability and sustainability of the business.
8. Letter of Appointment:
Inclusion of a letter of appointment specifying key roles and responsibilities of individuals within the company. This adds clarity to the organisational structure.
9. Letter of Recommendation:
A letter of recommendation that can serve as additional support for the company’s credibility, potentially enhancing the registration process.
Ensuring the completeness and accuracy of these documents is essential for a successful and expedient business registration process in Malaysia.
Final Thoughts
The key documents required for registering a company in Malaysia help in legal compliance and transparency. Essential documents include the Certificate of Incorporation, a certified copy of the company’s registration, etc. Additionally, forms 13A, 79, and 80 must be filled and submitted. The company name approval document from the SSM is crucial, along with supporting documents like the Articles of Association and a comprehensive business plan. While not mandatory, a letter of appointment and recommendation can further strengthen the registration process. Ensuring the accuracy and completeness of these documents is vital for a uniform and lawful company registration experience in Malaysia.
