By Andrew Tan (Corporate Secretarial Consultant), PwC Malaysia
When we mention the word “Company”, it brings to mind a busy factory, a multi-level corporate office or a billion-dollar tech company.
While most people planning to start a company are more than ready for the challenges of running a business, the incorporation process itself, however, comes with its own complexities, ranging from governmental processes, state laws and legislations, and the various types of business licenses required, just to name a few.
With these roadblocks, many would say that the first step is always the hardest one to take.
While that may be true for most countries, the Companies Commission of Malaysia (“CCM”) has recently taken strides to ease the incorporation process in Malaysia through the use of technology and modernising archaic laws and legislations.
The process of setting up a company in Malaysia is regulated under the Companies Act 2016 and is governed by the CCM.
The simplification of the incorporation process has been a priority of the CCM. Since the implementation of the new Companies Act 2016, tedious, manual, over-the-counter processes have been migrated online to streamline the entire process.
As with the birth of any entity, it always begins with a name. You will have to decide on a name and place a reservation of the said name online via the CCM’s Malaysia Corporate Identity (“MyCoID”) portal.
Many types of companies can be formed - from a simple private company limited by shares or guarantees, to larger public companies, depending on your needs.
Once the name has been approved, the CCM will provide a comprehensive form for your application to register a company. All of this can be completed online via the MyCoID.
The form itself is fairly straightforward and user-friendly, requiring only basic information such as the proposed director(s), shareholder(s) and business nature of your company.
The Companies Act 2016 has also helped to simplify the incorporation process by updating certain sections of the law.
For instance, the old requirement of having two resident directors (a director who primarily resides in Malaysia) has been reduced to one and the outdated par value regime for the share capital of a company of RM1 per share has also been done away with.
Once the form is completed, all that remains is to submit the form together with payment of registration fees. And if all goes well, the CCM will issue a Notice of Registration upon approval, confirming the official birth of your company.
Once the incorporation is completed, company secretaries will have to be appointed within the first thirty days.
Company secretaries in Malaysia play an important role in ensuring that your company is always on the right side of the law. Passing directors’ and members’ resolutions, setting your financial year end and keeping a proper, tidy record of all matters pertaining to your company at a designated registered office, are some examples amongst the numerous responsibilities held by company secretaries or company secretarial service providers.
So there you have it, you are all set to take your first steps with your newly incorporated company.
So speak to us today, and we will help you take that first step into the world of business.
Lee Shuk Yee
Tax Executive Director, PwC Malaysia
Tel: +60 (3) 2173 1626