Company incorporation and corporate secretarial
In Malaysia, a business may be conducted:
1. By an individual operating as sole proprietor 2. By two or more (but not more than 20) persons in partnership, or 3. By a locally incorporated company or by a foreign company registered under the provisions of the Companies Act 2016 All sole proprietorships and partnerships in Malaysia must be registered with the Companies Commission of Malaysia (SSM) under the Registration of Businesses Act 1956. In the case of partnerships, partners are both jointly and severally liable for the debts and obligations of the partnership should its assets be insufficient. Formal partnership deeds may be drawn up governing the rights and obligations of each partner but this is not obligatory. |
Company Structure
The Companies Act 2016 governs all companies in Malaysia. The Act stipulates that a a company must be registered with the SSM in order to engage in any business activity.
There are three (3) types of companies that can be incorporated under the Companies Act 2016:
1. A company limited by shares is a company formed on the principle that the members’ liability is limited by the
memorandum of association to the amount, if any, unpaid on the shares taken up by them
2. In a company limited by guarantee the liability of the members is limited by the Memorandum and Articles of
Association to the amount which the members have undertaken to contribute to the assets of the company in the
event the company is wound up.
3. An unlimited company is a company formed on the principle of having no limit placed on the liability of its members.
What is the benefits of having a Sdn. Bhd.?
Limited of liabilities
Limitation of liabilities for the company's directors and shareholders. you are limiting your liabilities to the amount of the share capital and the total net assets of the Company. You will protect your personal assets such as your fixed deposits and properties from the business risks!
Increase confidence from customers and suppliers
Setting up a "Sdn Bhd" adds credibility to your business as most reputable businesses are fomred as a company and not as sole proprietor or partnership. The existence of a company is more stable compare with an enterprise. The customers and suppliers are able to obtain background information about the company via company search.
Audited financial statements
The minority shareholders may rely on the audited financial statements a company as they are audited. The financial reporting of a company is transparent and properly maintained.
Change of directors and shareholders is done according to Companies Act, 2016
A company may attract investment form different investors and change of directors and shareholders is done according to the Companies Act, 2016.
Lower tax rate at 17% to 24% for SME
SME with paid up share capital of not more than RM2.5 million shall enjoy the lower company tax rate at 17% to 24%.
HS TEOH & CO shall assist you in the company formation, kindly furnish us the following information for company incorporation purposes:
(i) proposed company names
(ii) full name and address per I/C and copy of I/C or passport for all the directors and shareholders
(iii) % of shareholdings for each shareholders
(iv) principal activities of the company.
Please contact our office for the latest promotional package for company incorporation in Malaysia.
The incorporation fee shall includes:
The Companies Act 2016 governs all companies in Malaysia. The Act stipulates that a a company must be registered with the SSM in order to engage in any business activity.
There are three (3) types of companies that can be incorporated under the Companies Act 2016:
1. A company limited by shares is a company formed on the principle that the members’ liability is limited by the
memorandum of association to the amount, if any, unpaid on the shares taken up by them
2. In a company limited by guarantee the liability of the members is limited by the Memorandum and Articles of
Association to the amount which the members have undertaken to contribute to the assets of the company in the
event the company is wound up.
3. An unlimited company is a company formed on the principle of having no limit placed on the liability of its members.
What is the benefits of having a Sdn. Bhd.?
Limited of liabilities
Limitation of liabilities for the company's directors and shareholders. you are limiting your liabilities to the amount of the share capital and the total net assets of the Company. You will protect your personal assets such as your fixed deposits and properties from the business risks!
Increase confidence from customers and suppliers
Setting up a "Sdn Bhd" adds credibility to your business as most reputable businesses are fomred as a company and not as sole proprietor or partnership. The existence of a company is more stable compare with an enterprise. The customers and suppliers are able to obtain background information about the company via company search.
Audited financial statements
The minority shareholders may rely on the audited financial statements a company as they are audited. The financial reporting of a company is transparent and properly maintained.
Change of directors and shareholders is done according to Companies Act, 2016
A company may attract investment form different investors and change of directors and shareholders is done according to the Companies Act, 2016.
Lower tax rate at 17% to 24% for SME
SME with paid up share capital of not more than RM2.5 million shall enjoy the lower company tax rate at 17% to 24%.
HS TEOH & CO shall assist you in the company formation, kindly furnish us the following information for company incorporation purposes:
(i) proposed company names
(ii) full name and address per I/C and copy of I/C or passport for all the directors and shareholders
(iii) % of shareholdings for each shareholders
(iv) principal activities of the company.
Please contact our office for the latest promotional package for company incorporation in Malaysia.
The incorporation fee shall includes:
- Stamping fees
- Statutory books
- Share certificate book
- Common seal
- Memorandum and articles of association or constitution (5 sets)
- One Company name application fee
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