How To Set Up A SDN BHD Company In Malaysia

In Malaysia, Labuan is the prime destination when it comes to company registration. This is because foreigners are allowed to own 100 percent of their business. However, they have to register it as a Sdn Bhd (Pvt. Ltd.) company. The governing body that oversees the registration of companies in the country is the Companies Commission of Malaysia (SSM). Further, the registration has to be done with the help of a local Company Secretary who is certified.

Benefits of Setting Up a Sdn Bhd Company in Malaysia

  • Strategic location
  • Malaysia was ranked 15th in 2018 for ease of doing business by World Bank
  • No restrictions in repatriating capital, profits, dividends, and royalties
  • Malaysia has entered into treaties with 68 countries to avoid double taxation
  • Low rental rates and start-up costs
  • Limited liability
  • Business continuity
  • Easy to acquire a loan
  • Lower income tax
  • A Company is a different legal entity
  • Tax Relief

The benefits offered by a Sdn Bhd company outweigh that offered by other structures. This is because you will not be personally liable for all losses/ damages.

Steps Involved In Registering a Sdn Bhd Company in Malaysia

Company Name

It is mandatory to do a name search prior to choosing a name for your company. Once you have chosen the name, it must be reserved and approval obtained for the purpose of incorporation. The name you have chosen will be reserved for three months from the date of obtaining approval.

Other Requirements

  • Your company should have a registered office in the country.
  • There should be at least one director for your company (he/she should be at least 18-years old and residing in Malaysia).
  • There should be at least one shareholder for your company.
  • Your company should have at least one Company Secretary. Further, he/she must have membership in one of the professional bodies. Or else, he should have been licensed by the SSM.
  • Your company should have a paid-up capital of minimum RM1.
  • You should provide copies of the Identity Card or passport of all directors and shareholders.

Note: The director of your company should not have been either previously declared bankrupt or convicted for the past five years for any previous crimes.

Time Required for Registering a Sdn Bhd Company in Malaysia

  • Company name search – Maximum 24 hours
  • Registration documents preparation – Maximum 2 to 3 days
  • Signing of documents by directors and shareholders – One day
  • Documents submission to the SSM – Maximum 3 to 5 days
  • Issue of digital incorporation certificate by the SSM – Maximum 1 day

Note: This is just an estimate of the time required to set up a Sdn Bhd company in Malaysia. Delays can occur depending on the time taken by the SSM to verify the documents. You should ensure that that the information provided is all accurate.

We at QX Trust Ltd. (Offshore Labuan) provide Malaysia company registrations. We have the experience and expertise to help you register a company in Malaysia.