Company Setup with SSM in Malaysia
Selecting the right business entity in Malaysia is a crucial step in the formation process. Before establishing your business, you must determine the company type that best aligns with your objectives. We can reliably help you navigate the process of registering a business in Malaysia. The most popular structures are:
1. Business Registration
The following business structure is not a separate legal entity, meaning their owners bear unlimited personal liability. The entity is registered under the Registration of Business Act 1956.
Sole Proprietorship
A sole proprietorship is one of the simplest business structures to establish.
This entity is owned by a single individual who has unlimited liability, meaning their personal assets are not protected if the business incurs debt or goes bankrupt.
Only Malaysian citizens and permanent residents are eligible to register a sole proprietorship.
To maintain the business, an annual fee must be paid to the Companies Commission of Malaysia (SSM). However, there is no requirement for audits or annual filings.
2. Company Registration
The following business structure is a separate legal entity, meaning the company’s liabilities are distinct from those of its directors and shareholders. The entity is registered under the Companies Act 2016.
Private Limited Company (Sdn Bhd)
A private limited company (Sendirian Berhad or Sdn Bhd) is a separate legal entity, allowing it to own property, enter contracts, and engage in legal proceedings independently of its owners.
Owners are only liable for the amount they have invested in the company, ensuring that their personal assets remain protected if the business faces financial difficulties.
This is the most common structure for foreign investors, as 100% foreign ownership is permitted. However, certain industries—such as agriculture, banking, education, and oil & gas—may require at least 50% Malaysian ownership.
To form a private limited company, a minimum of one and a maximum of 50 members is required. Shares can be issued to individuals or corporate entities.
3. Limited Liability Partnership (LLP)
The following business structure is a separate legal entity from its partners, providing them with asset protection in case of debt or bankruptcy. The entity is registered under the Limited Liability Partnerships Act 2012.
Limited Liability Partnership (LLP)
A limited liability partnership (LLP) blends the features of a partnership and a private limited company (Sdn Bhd).
This business structure has fewer compliance requirements compared to other entities and is a cost-effective option, making it ideal for small businesses and startups.
Company Registration Process
STEP 1
Conducting a Name Search
The first step in registering a new company in Malaysia is to perform a name search. This ensures that the proposed company name is available for use.
STEP 2
Drafting and Submitting Registration Documents
Once the company name is approved, registration documents must be prepared and submitted to the Companies Commission of Malaysia (SSM) within one month. Failure to do so will require repeating the name search process.
STEP 3
Receiving the Registration Certificate
After a successful submission, you will receive a certificate of registration from SSM, officially confirming that your company is ready to begin operations.
Full Suite of Company Setup Services
These services are supported by legal documents to guarantee that you maintain ownership and control of your company.
Company Registration
Registering your selected business entity (between the three popular structures) with the Companies Commission of Malaysia (SSM). Most new companies can be set up in 7 business days or faster.
Company Secretary
We manage all your regular and extraordinary company affairs, including recurring filings, maintaining statutory records and books, and providing secretarial advice.
Resident Director
In Malaysia, all private limited companies must have at least one individual director and shareholder. If you’re unable to fulfill this requirement, we can act as your resident director.
Registered Office
A company is required to have a registered office in Malaysia from the date of incorporation. In addition to providing a registered office, our service also includes a mailing address with mail forwarding services.
Unsure Which Business Structure Suits Your Needs?
Gain clarity by contacting our professionals on setting up your company in Malaysia. We’ll guide you through everything, from selecting the right business structure to full suite of flexible company formation services, and more.