{"id":43,"date":"2025-08-28T11:00:14","date_gmt":"2025-08-28T02:00:14","guid":{"rendered":"https:\/\/my.px-acc.com\/my\/?p=43"},"modified":"2025-09-03T11:00:50","modified_gmt":"2025-09-03T02:00:50","slug":"company-incorporation-and-operation","status":"publish","type":"post","link":"https:\/\/my.px-acc.com\/my\/2025\/08\/28\/company-incorporation-and-operation\/","title":{"rendered":"Company Incorporation and Operation"},"content":{"rendered":"\n

Note: This guide provides an overview of the main points in simplified form, with some details omitted. For practical application, a more in-depth understanding of the law is required. Please consult us separately for further advice.<\/em><\/p>\n\n\n\n

\n\n\n\n

What is a Company?<\/h3>\n\n\n\n

A company is a business entity with legal personality registered under the Companies Act 2016<\/strong> of Malaysia.
Typically, company names end with \u201cSdn. Bhd.\u201d<\/strong> (Private Limited Company) or \u201cBerhad\u201d (Bhd.)<\/strong> (Public Limited Company).<\/p>\n\n\n\n

\n\n\n\n

Types of Companies<\/h3>\n\n\n\n

1. Private Company (Sendirian Berhad, Sdn. Bhd.)<\/strong><\/p>\n\n\n\n

    \n
  • Maximum of 50 shareholders.<\/li>\n\n\n\n
  • Transfer of shares is restricted.<\/li>\n\n\n\n
  • Public fundraising is not permitted.<\/li>\n\n\n\n
  • The vast majority of companies incorporated in Malaysia are Sdn. Bhd.<\/li>\n<\/ul>\n\n\n\n

    2. Public Company (Berhad, Bhd.)<\/strong><\/p>\n\n\n\n

      \n
    • No limit on the number of shareholders.<\/li>\n\n\n\n
    • May issue shares and debentures through the stock exchange.<\/li>\n\n\n\n
    • If raising funds via public offering, a prospectus<\/strong> must be submitted to and approved by the Securities Commission (SC)<\/strong>.<\/li>\n<\/ul>\n\n\n\n
      \"\"<\/figure>\n\n\n\n
      \n\n\n\n

      Incorporation Procedures<\/h3>\n\n\n\n

      To operate a business in Malaysia, a company must first be registered with the Companies Commission of Malaysia (SSM: Suruhanjaya Syarikat Malaysia)<\/strong>.<\/p>\n\n\n\n

      1. Company Name Reservation<\/strong><\/p>\n\n\n\n

        \n
      • Apply via SSM\u2019s MyCoID system<\/strong> and obtain approval.<\/li>\n\n\n\n
      • Names that are inappropriate, against public policy, or similar to existing companies are not permitted.<\/li>\n<\/ul>\n\n\n\n

        2. Constitution<\/strong><\/p>\n\n\n\n

          \n
        • Submission is optional.<\/li>\n\n\n\n
        • If the company does not adopt its own Constitution, the provisions of the Companies Act automatically apply.<\/li>\n<\/ul>\n\n\n\n

          3. Registration Application<\/strong><\/p>\n\n\n\n

            \n
          • Submit details of directors and shareholders, and pay registration fees.<\/li>\n\n\n\n
          • Registration is usually completed within 1\u20133 business days if documents are in order.<\/li>\n<\/ul>\n\n\n\n
            \n\n\n\n

            Directors<\/h3>\n\n\n\n
              \n
            • A minimum of one director<\/strong> is required.<\/li>\n\n\n\n
            • Directors must be at least 18 years old, and individuals who are bankrupt or convicted of fraud are disqualified.<\/li>\n\n\n\n
            • At least one director must be a resident in Malaysia<\/strong> (ordinarily residing).<\/li>\n<\/ul>\n\n\n\n
              \n\n\n\n

              Company Secretary<\/h3>\n\n\n\n
                \n
              • Must be appointed within 30 days of incorporation<\/strong>.<\/li>\n\n\n\n
              • Must be a licensed individual registered with SSM and a resident in Malaysia.<\/li>\n\n\n\n
              • In companies with only one director, the director cannot also act as the company secretary.<\/li>\n<\/ul>\n\n\n\n
                \n\n\n\n

                Registered Office<\/h3>\n\n\n\n
                  \n
                • A company must maintain a registered office in Malaysia where documents are accessible during normal business hours.<\/li>\n\n\n\n
                • Any change of address must be notified to SSM within 14 days<\/strong>.<\/li>\n<\/ul>\n\n\n\n
                  \n\n\n\n

                  Auditor<\/h3>\n\n\n\n
                    \n
                  • An auditor must be appointed within 30 days of incorporation<\/strong>.<\/li>\n\n\n\n
                  • However, an exemption applies to Small Companies<\/strong>, defined as meeting at least two of the following criteria:\n
                      \n
                    • Annual revenue of RM500,000 or less<\/li>\n\n\n\n
                    • Total assets of RM500,000 or less<\/li>\n\n\n\n
                    • No more than 20 employees<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
                      \n\n\n\n

                      Annual Filings and Compliance<\/h3>\n\n\n\n
                        \n
                      • Listed companies<\/strong> have additional reporting obligations to the stock exchange and Securities Commission.<\/li>\n\n\n\n
                      • All companies must file an Annual Return<\/strong> with SSM within 30 days of the anniversary of incorporation<\/strong>.<\/li>\n\n\n\n
                      • Financial Statements<\/strong> must be presented to shareholders within 7 months of the financial year-end<\/strong> and submitted to SSM when required.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                        Note: This guide provides an overvi…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-43","post","type-post","status-publish","format-standard","hentry","category-guide"],"_links":{"self":[{"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/posts\/43","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/comments?post=43"}],"version-history":[{"count":1,"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/posts\/43\/revisions"}],"predecessor-version":[{"id":45,"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/posts\/43\/revisions\/45"}],"wp:attachment":[{"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/media?parent=43"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/categories?post=43"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/my.px-acc.com\/my\/wp-json\/wp\/v2\/tags?post=43"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}