Business Finance

How to Register Your New Company

30 November 2022

Key takeaways:

Getting your MyCoID
Types of company entities and 4 main company features
The company registration procedure and documents

Unlike registering a new business such as a sole proprietorship or partnership which you can do within 30 days of commencement of business, registering your new company (for this article's purpose we will focus on Private Limited or Sdn Bhd companies versus Public Limited or Bhd companies) must be done before commencement of any activities.

[For a full overview of the different business entities and to find out which will suit your business best, read our guide on “Choosing the right business entity for your new company in Malaysia”]

New companies in Malaysia must be registered with the Companies Commission of Malaysia (SSM), in accordance with the Companies Act 2016. Despite the added paperwork and compliance requirements of registering a new company, the application process can be done entirely online via SSM's MyCoID portal.

Malaysia Corporate Identity Number (MyCoID) is the company registration number with SSM, which is used as a single source of reference for registration and transactions purposes with other relevant government agencies like the Inland Revenue Board (LHDN), Employees Provident Fund (EPF), Human Resources Development Fund (HRDF), Social Security Organisation (Socso), and Small and Medium Enterprise Corporation Malaysia (SME Corp).

By streamlining the registration process for new companies, SSM has shortened the time taken to approve new applications. MyCoID is available 24/7 so you can compile documents, submit applications, and make payments from the comfort of your home. For instance, submission of documents from 12 am to 12 noon will result in notification and approval by 5 pm on the same business day, while users who submit documents from 12 noon to 11.59 pm will receive notification and approval by SSM on the next business day.

Company types and features

While Private Limited (Sdn Bhd) and Public Limited (Bhd) are the two most common company entities incorporated in Malaysia, SSM defines companies by three types: company limited by shares, company limited by guarantee, and unlimited companies.

Both Sdn Bhd and Bhd are limited by shares, whereas companies that are limited by guarantee are usually incorporated by non-profits such as Foundations or Institutes, and unlimited are very rare in Malaysia (as the main draw of choosing a company is the limited liability offered).

Regardless of company type, the incorporation fee for companies limited by shares is RM1,000. There are four main company features: a company name; one or more members; in the case of a limited company with shares, one or more shares; and lastly, one or more directors. The number of directors and promoters needed to incorporate a company in Malaysia differs slightly if you set up Sdn Bhd or Bhd.

For a private company like a Sdn Bhd, the basic requirements for registration are: at least one director, and one promoter. For a public company like a Bhd, the registration process requires at least two directors, and minimum one promoter. The directors need to be 18 years old and above, residing in Malaysia, and not disqualified under Section 198 of Companies Act 2016 (being convicted of offences).

The Procedure: Registering Your New Company

Step 1: Conducting a Name Search and Applying for Your Company Name.

It sounds easy but you cannot just pick a company name and apply to SSM with that name. You should first check if other companies have similar names, or if the name you prefer has been reserved. Fortunately, you can do that in a matter of minutes via the MyCoID portal or the SSM e-Info website.

There are two ways you can apply for a company name:

Method of Applying for a Name	Explanation
Direct Incorporation: a combination of name reservation and the incorporation process.	The applicant must complete the information during the application for the name and incorporation of a company via online and incorporation fees of RM1,000.00; and If the proposed name is approved by SSM, the application to incorporate the company would be directly sent to the company officer to be processed.
Name Reservation	The applicant must complete the information for the name of the company online and the fee is RM50.00 for each name applied. Incorporation of company is a separate process; and If the name is approved by SSM, the name is reserved for 30 days or any longer date as allowed by the Registrar (maximum 180 days) from the date of approval. The applicant can then apply for incorporation with a fee of RM1,000.

Step 2: Lodging your application to incorporate the company

Under Section 14 (1) of the Companies Act 2016, applicants for new company registrations must complete the information required: the proposed name of the company, the status of private or public company, registered office and business address, and a complete detail of director(s) and promoter(s).

Other documents include:

Document	Status
Declaration from company director(s) or promoter(s) that they are *not an undischarged bankrupt, and have not been convicted of any offence* whether in or outside Malaysia.	Compulsory
Declaration of Compliance stating that the applicant has complied with all requirements of the Companies Act 2016.	Compulsory, to be made by the individual who is responsible for the incorporation.
Copy of consent letter from the corporate body named as the member of the company, if any.	If a corporate body is a member/shareholder of your company.
Copy of certificate of director(s)'s qualification(s)	If required, i.e. Food Handler Cert from the Ministry of Health if running an F&B company.
Consent letter from the relevant agency regulating your industry	If required, i.e. a kindergarten operator needs to be registered with the Minister of Education.

Step 3: Verification of incorporation

If the SSM Registrar is satisfied that all information provided is complete and complied with the required procedures, it will issue a notice of approval and registration to your company. However, a certificate of incorporation will only be issued by SSM upon request together with fee payment.

Step 4: After incorporation

The company shall appoint a company secretary within 30 days after incorporation. Company secretaries must be registered with SSM and possess a valid practising certificate issued by SSM. If required by the company, it may file the constitution of the company after incorporation. Now that you're done registering your company, the hard part is over. It's now time need to maximise your marketing efforts and get your new company's name out there and promote your business. If you open a Business Current Account (BCA) with Alliance Bank, you get instant access and discounted rates to over 150 partner apps and services supported via BizSmart^® Solution. Marketing your company, digitising your paperwork, and tapping upskilling and other human resources services - you name it, Alliance Bank's BizSmart^® Solution universe has it. Explore your value-added options to grow and promote your new company at https://bizsmartsolution.alliancebank.com.my/partners/all-partners.aspx.