New Company Registration

Incorporating a Company in Malaysia: Step-by-Step Instructions

The Companies Commission of Malaysia is the statutory organisation established by an Act of Parliament charged with overseeing the country’s corporations and commercial activities. Locals refer to the new company registration Commission of Malaysia as SSM, an abbreviation of the Malay term Suruhanjaya Syarikat Malaysia.

What is SSM?

SSM, the Companies Commission of Malaysia, guides and manages how businesses start and grow. It watches over all companies to ensure they follow the rules. Every business in Malaysia must sign up with SSM to run properly. SSM also holds a big list of companies that help everyone see the details about any business.

Malaysia’s SSM Registration Procedure

In Malaysia, a new company registration may be registered with the SSM using either the owner’s given name or a chosen business name. A separate application for a company name is not required if the individual is establishing a business using a personal name (such as the name on their official government-issued identification card).

In order to register new business under a trade name, the Registrar of Businesses must first approve the proposed name. Once the name is accepted, the following procedures must be completed to new business registration with SSM:

• Applicants need to fill out Company Registration Form A and include information about the business’s name, date of creation, primary place of business, branch address (if applicable), owners and partners, business activity, and a copy of the Partnership Agreement (if applicable).
• The document to register new business must be signed by all owners or partners of a company if there is more than one.
• The application may be filed either in person or electronically on the SSM’s website using the SSM’s e-Lodgement services.
• The forms must be accompanied by a photocopy of the applicant’s identification document, as well as any applicable permissions, licences, or supporting letters for the kind of company, as well as any approval of the supporting letter from the relevant agency.

What Do You Need to Know About SSM Registration in Malaysia?

The applicant has to fulfil the following criteria in register new company in Malaysia:

• An individual who is not a citizen or permanent resident of Malaysia is not eligible to register with the SSM.
• The applicant applying must be above the age of 18.
• The deadline for registering a business is 30 days from the day it first opens for business.
• The company’s activities can’t be illegal or exploited for bad ends, period.

In Malaysia, the time to register new company is one year, while the maximum duration of validity for a registration is five years. It is important to note that even after registering with the SSM, individuals are still responsible for obtaining any necessary licences, permissions, or approval letters from other applicable authorities.

The Companies Act of 2016 permits the formation of two distinct categories of companies:

Limited Liability Company

The words “Sendirian Berhad” or “Sdn. Bhd.” appended to the end of a business’s name indicates that it is a private company, whereas the words “Berhad” or “Bhd.” appended to the end of a company’s name indicates that it is a public corporation.

An Entity With No Limits Partnership

For all intents and purposes, an unlimited company is a firm limited only by its articles of formation, much as a business limited by shares. The Constitution (previously the Memorandum and Articles of Association) of an unlimited business must explicitly specify that the liability of its members is limitless.

Benefits of Business Registration with SSM

1. Legal Recognition: When you register a new business with SSM, your business earns an official spot in the law. This means your business can act like its own person, following rules and taking part in important activities. Your business can now sign deals, buy and sell things, and stay safe under the law in Malaysia.
2. Trust and Credibility: People believe more in businesses that are registered. When your business is with SSM, it shows you want to follow the rules and stay true. This helps your customers feel safe and trust you more, making them come back to your business again and again.
3. Business Name Protection: When you register your business, you claim the name. No one else can take your business name or copy it. This guards your name from others who may try to use it, keeping your business special and free from name troubles.
4. Access to Financial Support: Once registered, your business can open a bank account just for it, which keeps your money organized. Banks also offer loans and other help to registered businesses, giving you more chances to grow and build your company even bigger.
5. Government Grants and Incentives: The government gives special help like grants and tax breaks, but only to registered businesses. When you register a new company with SSM, you unlock these opportunities, which can save you money and help your business flourish.
6. Legal Compliance and Protection: Running a business without registering is against the law in Malaysia, and this can cause problems like fines or closing down. Registering keeps your business safe from these troubles and lets you stay on the right path, following all the rules.

How to Register a Company in Malaysia: Step-by-Step Instructions

1. Pick a Business Structure: Pick the best business structure for your new company registration. You can go with a sole proprietorship, partnership, or private limited company.
2. Choose a Business Name: Find a business name that follows the rules. Make sure it’s not too similar to others. Check if it’s available online through SSM.
3. Gather Required Documents: Collect all the important papers like copies of your MyKad, business forms, and any permits or approvals you need.
4. Submit to SSM: Take your documents and give them to SSM either online or at their office. The process lasts 5-10 days. You’ll get a certificate when it’s done.

Consequences of Not Registering a Business in Malaysia

If you don’t register your business in Malaysia, big problems can pop up.

1. Legal Penalties: Running a business without registering breaks the law. You could get fined a lot of money or spend two years in jail.
2. Ineligibility for Business Support: Without registration, you can’t ask for loans or grants. You also can’t use important services like payment gateways or get help from the government.
3. Lack of Legal Protection:  If your business isn’t registered, you won’t have the law to help you. If there’s a problem with contracts or payments, you won’t be able to fix it easily.
4. Missed Opportunities: Businesses need licenses or permits. If your business isn’t registered, you can’t get them, and that could slow your business down.
5. Brand Trust Issues: People might not trust your business if it’s not registered. A registered business helps customers feel safe and happy.

To Get Your Company Registered As An SDN BHD, Draw Up A Business Plan

When you’re ready to take on the task of starting a company from scratch, it’s time to look into SDN/ BHD Registration. It’s not enough to just understand how to register your SDN BHD; you also need a well-thought-out company strategy. It ought to be exhaustive in scope and well researched. It ought to have everything you might possibly need to run your business included in it.

Here’s why you should sign up your web shop with SSM?

• Eventually, the company will be incorporated.
• If you do this, your clientele will have more faith in you.
• Users may also use it to confirm company details.
• Provided information about your company will help the government better assist your business community and its future prospects.
• Businesses must have valid registration in order to use a Malaysia Payment Gateway like eGHL, iPay88, and others.

Things To Consider before registering

• The company must be registered within thirty (30) days of its opening.
• You may register your company for anything between one (1) year and five (5) years at a time.
• Businesses cannot be registered if their activities are illegal, would compromise national security, public safety, or morals, or if they constitute a threat to the public.
• Paying for a Business Registration Certificate will get you your paperwork within one (1) hour.
• A violation of the ROBA 1956 may result in a fine of up to RM50,000 or two years in jail, or both, for those who operate a company without first registering it.
• Despite having obtained SSM registration, it is still the responsibility of company owners to get the necessary licences, permits, and permission letters from other regulatory bodies.

Why you should keep TN Advisory before registering your company

When developing a company strategy, it is crucial to know not just SDN BHD Registration but also your potential competitors. It has to be something that sets your organisation apart from the competition. It’s important to consider the available resources and time limit while establishing corporate objectives. You need to know who you’re selling to so you can better serve them.

The aforementioned are just a few of the many things to keep in mind. As a business owner, you should also play it safe when predicting your income. Therefore, it’s important to be cautious when making predictions about future expansion. Besides register new company requirements, you should be able to set reasonable expectations of how to run the business.

An easier path with lesser chances of failure is to seek our professional help with registering your business. Contact us today!