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The Malaysian’s guide to company incorporation of Sdn Bhd

Starting a business can be an exciting and rewarding experience. It is more than just coming up with an idea and getting started. However, it is also a significant undertaking that requires careful planning to ensure success. Company formation in Malaysia entails careful consideration about what type of entity you want to form, where you want the business to be located, and what will be required to get it off the ground.

The process of new company formation can be daunting. Without proper planning, it can be a costly and time-consuming process. However, there are some crucial steps that you must take before making the final decision to form your company. It is best to go through the steps carefully and follow them precisely to avoid any future complications. This guide will help you get your company up and running as smoothly as possible.

Undoubtedly, the journey of entrepreneurship may seem overwhelming at first, but we’ve got your back. This blog post will walk you through all the steps for company formation in Malaysia and help you get on your way to future success.


Preparation for New Company Formation

The very first step of the journey for new company formation is deciding the basic requirements for your business. Though the questions may sound common and ordinary, it is essential to define the business that you are about to venture into. It includes choosing the suitable business structure for your company formation, selecting a company name, deciding and appointing qualified officers, among many others. In addition to that, you can also hire company formation services for consultation.

Before you start on the company formation, you need to identify the essence of your business – the type of business entity that is suitable for you. Business types in Malaysia include sole proprietorship, partnership, limited liability partnership, a private limited company (Sdn. Bhd.), public limited company and subsidiary company.

Once you have chosen a suitable business entity, the next step in new company formation is selecting a company name. Indeed, every business needs a good name that is more than just a brand name – it should be part of your marketing strategy and brand identity. After you have decided on the name, you should run a name check with the Companies Commission of Malaysia (SSM). Subsequently, you can register the name if it is still available.


Company Formation & Registration

Once you have completed the preparation stage, the next step of company formation in Malaysia is registering your business with the related authorities. Please keep in mind that this step is the part where it requires a handful of documents and paperwork. Thus, it is recommended to be prepared in advance so that the new company formation process can be done smoothly without missing information.

The required documents for company formation may differ depending on the business type. It may include but is not limited to:

  • Comprehensive company profile and background
  • Company name’s approval letter from SSM
  • Information of directors and shareholders
  • Copies of identity card (MyKad) for verification 
  • Statuary declaration by a director or promoter before the appointment
  • Declaration of compliance

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