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BCH - Steps Company Formation

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The following text contains a detailed summary of the bureaucratic and legal issues an entrepreneur faces in order to incorporate and register a new company / firm in Malaysia. It looks at the process involved in setting up a commercial or industrial firm with a maximum of 50 employees and start-up capital of 10 times the economy’s per-capita gross national income (GNI).

1. Register with Social Security Organization
The employer is required to register all employees with a monthly wage lower than RM 3,000, with and contribute to the Social Security Organization (SOCSO). This is regardless of employees’ employment status (permanent, temporary, or casual). The promoter needs to fill the form and send the applicable documents. SOCSO registration can’t be completed online, Form 1 (Employers’ Registration Form) and then the registration number will be provided straight away at registration at the counter. Companies / firms are now able to use their single company ID (myCoID) to register with all government organizations.

2. Inform the Director General of the Inland Revenue Board of the employment of workers.
Once the employer registers with the IRB as an employer, they are required to give the Inland Revenue Board a list of taxable employees, and to update this list as and when needed.

3. File appropriate documents with the Companies Commission of Malaysia and receive stamps
Comment: Within three months of the company name being reserved, promoters are required to pay the registration charge and file the listed incorporation documents with the Companies Commission:
The memorandum and articles of association and the compliance statutory declaration (Form 48A) (these documents will be prepared either by the company secretary or a lawyer). The particulars of (a) two subscribers holding a minimum of one share of MYR 1 each and (b) At least two directors who have their principal or sole place of residence in Malaysia. A copy of the letter from the CCM and the original Form 13A authorizing the company / firm name also need to be included. The location or address of the registered office of the company / firm. Form 6 (compliance statutory declaration) maintaining compliance with the requirements of the Companies Act 1965 and the Companies Regulations on issues precedent and relevant to the company’s registration. The company secretary needs to file Form 6.
Once the incorporation papers have been submitted, the CCM provides Form 9 (incorporation certificate) within one or two working days, after lodgement of the appropriate documents.

The registration charge for the approved share capital is charged using the listed scale below and needs to be paid to the Companies Commission: Capital up to MYR 100, 000: MYR 900; 100,001 to 500,000: MYR 2550; 500,001 to MYR 1 million: MYR 4250; 1,000,0001 to 5 million: MYR 6800; 5,000,001 to 10, 000,000: MYR 8500; 10,000,001 to MYR 25 Million: MYR 17,000; 25,000,001 to 50 Million: MYR 34,000; 50,000,001 to 100 Million: MYR 42,500; over 100 Million: MYR 59,500

As of April 01, 2010 the authorization to stamp documents has been given to the CCM and entrepreneurs don’t have to go to the Inland Revenue Board (IRB) anymore. The stamp fee is RM100 for the Memorandum and RM100 for the Articles with every second set stamped at RM10.

4. Make a company seal
For RM100, the seal may be ready in three days.

5. Buy statutory books and share certificates books
The share certificate and statutory books can be bought from particular specialized stationery shops.

6. Register with the Income Tax Department
Company registration with the Inland Revenue Board (IRB) as a tax payer may be completed at the IRB counter or online at this link: http://ekl.hasil.gov.my Form 9 (Incorporation Certificate) and Form 49 (Return Giving Particulars in Register of Directors, Managers and Secretaries and Changes of Particulars) may be uploaded at this address. The tax reference number will be proved in four working days, online registration is undertaken. As well as Form 49 and Form 9, copies of the Memorandum and Articles of Association and Form 24 need to be given, if registration is completed at the IRB counter. Normally, within five working days, the tax number is generated.

7. Register for Employment Provident Fund (EPF)
Promoters are required to register with any branch of the Employment Provident Fund by filling the relevant form and sending the appropriate documents. Even though EPF registration can’t be completed online, the registration form (Form KWSP 1) The registration number will be provided straight away at registration, once the information provided is fully complete and there is no problem with the EPF system,. Companies / firms may now use their single company ID (myCoID) to register with all government organizations.

8. Register with Social Security Organiza
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BCH - Beyond Corporate House Sdn Bhd

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Kuala Lumpur - Kuala Lumpur
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