So, it’s time for you to become an entrepreneur? Ready to take the plunge and become a businessman / businesswoman? Before you even think about marketing, branding and growth strategies, it’s imperative that you form an official business entity. It’s tough to call yourself a business owner when your business doesn’t legally exist right?
There are numerous advantages of legally incorporating a company particularly when it comes to establishing your brand and identity, attracting customers, bank loan applications, seeking investments and recruitment, among others. In Malaysia, incorporating a company has been made easier with the New Companies Act 2016 which came into force last year.
Before going further, your first need to identify the types of companies that you can register in Malaysia and decide which entity suits you best.
· Sole Proprietorship
· Partnership
· Private Limited (Sdn Bhd)
· Limited Liability Partnership (LLP)
Setting up a Sole Proprietorship, Partnership and Limited Liability Partnership, this can be done directly at the Companies Commission of Malaysia.
Generally , companies limited by shares also known as a Private Limited Company ( Sdn Bhd) is the most common business vehicle to carry our business in Malaysia which provides limited liability status to its shareholders.
The requirement to form a company in Malaysia:-
· a minimum paid-up capital of RM1 only
· a minimum of one (1) subscriber to the share(s) of the company
· a minimum of one director who is at least 18 years of age and resides in Malaysia. He/she must not be a bankrupt and must not have any conviction and imprisonment for a period of more than five (5) years
· a minimum of one Company Secretary is compulsory (Company Secretary must be a member of any one of the prescribed professional bodies or licensed by the Suruhanjaya Syarikat Malaysia {SSM}).
· must have a registered office in Malaysia to which all communications and notices may be addressed. It is normal practice in Malaysia to have the secretarial office as the registered office.
These requirement and other compliance matters such as accounting records, audit financial statements, essential disclosures, responsibilities as employers, income tax and goods and services tax obligations must be strictly adhered to, to ensure smooth day-to-day operations and, of course, avoid falling foul of the laws that govern company incorporation.
It may all seem a little overwhelming for some but that’s what JS Partners are here for.
We handle the full suite of company incorporation, including Company Secretarial Services, at a fee that fits SMEs. Get in touch with us at (+ 603-6250 1615 ) and we will take it from there.
With JS Partners, everything adds up and balances.
