How To Register a Company in Malaysia with Suruhanjaya Syarikat Malaysia (SSM) as a Foreigner
Are you a foreigner in this developing land?
Always looking for an opportunity to widen or start up your company in this country but do not know how to?
Or maybe someone has been telling you that a foreigner can never open his company here, let alone flourish in his business?
Well, well, well, let those thoughts of yours become a myth.
If you’re thinking of opening up your own company in this Land of Indigenous Malay, you better not let that idea die! Yes, you heard me right. This house believes (and guarantees) that foreigners could make a living in Malaysia out of entrepreneurship.
Feel excited now? Well, hop on to this ride of the guidelines on how to register a company in Malaysia, be it through the traditional medium or online platform!
All you gotta do is to register your company with Suruhanjaya Syarikat Malaysia (SSM).
What is SSM?
Well, fret not as this statutory body, which is also known as the Companies Commission of Malaysia (SSM) is here to help you ease out the process of your company registration.
SSM is actually a consequence of the merge between Registrar of Companies (ROC) and the Registrar of Businesses (ROB). It acts to regulate different types of companies and businesses in Malaysia since April 2002.
Check out our other articles under SSM:
How To Register A Company in Malaysia With SSM: Step By Step Guide 2019
Starting Out: Choosing The Best Company Name
SSM Registration: The Types of Businesses You Can Register With SSM
Statutory Requirement & Conditions
Well, you will first need to know whether you’re qualified to jump-start business in Malaysia before you get your hopes too high:
• Age must be 18 and above
In order for you to open up a company in Malaysia, you must be mature enough, at least 18 years old.
• Requires a residential address in Malaysia
Another thing is that you must have a permanent residential address in Malaysia.
• Need to have a Malaysia tel. number
In order to make communication easier, as well as building trust among local customers, you will need to get yourself a Malaysia phone number.
• Minimum paid-up capital is RM1
Yes, you read that right. You can have a paid-up capital as low as RM1 for you to open up a company here!
• Free from bankruptcy
Of course, you will need to have a clean history before you could start up your business. Eventually, there’s no such thing as ‘your past don’t matter’ when it comes to bankruptcy :’)
• The company to be registered must be Sdn Bhd only
Sdn Bhd is a type of business which enables you to to have a separate entity in governing your company.
Make Your Way To SSM
For your information, SSM main building in Kuala Lumpur is located right beside the Axiata building. So if you’re coming from KL Sentral, you can just head straight to Axiata, exit the building, and make your way to SSM within 5-7 minutes walking distance.
As you arrived in SSM building, you can now take up the lift on your right and go straight to the 17th floor to register your company. You may then take your number and wait for your turn.
It is advisable that you go to ‘Counter 21 – Company Incorporation Advisory’ first (refer to image below) for you to ask them on further details and explanation of what you should be doing from that moment onwards.
No sweat, the officers there are as friendly as you can see in the picture!
By the way, below are some of the details you might want to take note in advance before planning your journey to SSM Main Building in Kuala Lumpur:
Address
MENARA SSM@SENTRAL
No 7, Jalan Stesen Sentral 5,
Kuala Lumpur Sentral,
50623 Kuala Lumpur.
Operating Hours
Day: Monday – Friday
Service Counter: 8.15 am – 4.15 pm
SSM General Line
Tel: 03-2299 4400
Fax: 03-2299 4411
SSM Contact Centre
Tel: 03-7721 4000
Fax: 03-7721 4001
E-mail : enquiry@ssm.com.my
Two Methods of Registration
To all well-to-be big bosses of your own respective company, you should know that there are two methods for you to choose (either one of them), in order to register your local company with SSM.
If you’re the lazy type or the one who does not like to socialise with people, especially officers and staff of SSM, you can choose from the following options:
(a) Let all the procedures being done by your Company Secretary (Cosec)
(b) Do it online on your own, by going to MyCOID2016.
If you don’t have a Cosec yet, or if you’re the ever-enthusiastic type who would like to explore more on this baby step to register your company , you can do it yourself online.
Procedures & Requirements:
Step 1: Sign up as a user
You can either do this at SSM counter or even from your home.
Now that you are on the homepage of MyCoID, be sure to click the sign-up button at the corner of the upper right of the page.
It will bring you to this page. Remember that you still do not have an account to sign in, so click ‘Sign up’ at the bottom of the box, under the blue sign in button.
When you have filled in everything, click ‘submit’! You will then be channeled to the following page:
Remember when I said you can either sign up at SSM or from your home? Well, eventually you will have to do the following:
Step 2: Go to SSM building (at least once along the process of your company registration no matter how busy you are) for you to activate your account.
As you can see from the above image,
- You have 14 days from the date you signed up as a user to come to any nearest SSM building in your area, if you wish not to go to the main building in Kuala Lumpur.
- Be sure to bring along your passport and a copy of it, as well as
- A copy of the said email notification with the title Verification at Counter.
Your visa is not required, not even your thumbprint. So, you may leave your thumb at home.
Sdn Bhd Registration Cost
- You will need to prepare RM1010 before going for your account activation. The period of approval is between 2-3 days.
- After your company has been approved, make sure to appoint a company secretary of your own within 30 days.
Well, needless to say, two is always better than one. Therefore,
- You will need to have a secretary for your company to run smoothly as he/she will usually be the intermediary between you and the other companies/agencies.
- For your information, you can also open up a foreign company say if you wish to expand your branch or franchise from your original country to Malaysia. The details, nature as well as acts authorized upon the business will be the same as the original branch outside Malaysia.
Can foreigner hold full shares of the company?
If someone told you that a foreigner will need to have a Malaysian business partner in order to open up a company in Malaysia, he/she is not wrong. It’s just that the policy has now changed. You can now open up a business 100% on your own!
Benefits of Setting Up Foreign Company in Malaysia
Why should you open your company in Malaysia you asked? Well, behold! Because we’re about to present you a long lists of benefits you will get from opening your own corporation here:
1. Strategic In All Aspects
Malaysia being at the two sides where South China Sea flows in between, has always been a strategic place for business and economy to bloom since the reign of Malacca sultanate in 1400s.
Not just that, Malaysia also has praising infrastructure, well-trained labour and admirable political stability (if compared to other countries) as well as reasonable cost of living which leads to proactive investment in the business industry.
2. Low rental costs & wages
As compared to Singapore and other nations in Asia, Malaysia has lower rental costs. The average rate per month would be RM70.06 or 17USD. As for the wages, the mean costs would be RM9.52 or 2.31USD per month.
3. Tax Benefits
Good news! Malaysia up to this date, has got itself over more than 60 treaties nationwide. What does this mean?
It means that when Malaysia is doing corporate business with all the countries, both sides will not be taxed, or in other words, it’s double taxation free!
Another thing is that, if you choose to establish an LLC (Limited liability company) you will only be taxed for the profits being gained.
4. Stable Business Environment
Malaysia, though is still labelled as a developing country, it is known for its stability economically. Due to this five percent rate of economic growth, many established foreign brands opt to open their own company in Malaysia.
The stability also contributes to less risk for business entrepreneurs.
5. Intelligent Workforce
As education is seen as the utmost significant aspect among the citizens of the country, educated workforce is not an alien to the business market. This shall help in making the business to function well in the future.
6. Dynamic Government
Malaysia is ever proactive in supporting different range of industries to flourish on its land.
With the government going the extra miles in enhancing the business surrounding of the country, foreign investment is highly welcomed now that the rules and policy have been modified to cater to foreign demands.
This contributes to a handsome business success level in Malaysia.
The support which government is giving to rising entrepreneurs are also praiseworthy as many seminars, training as well as incentives had been done and given out in the past years to inculcate the knowledge of business handling among the new business starters.
Conclusion
All in all, there is always a way for you to generate a source of income if you’re willing to work for it, no matter where you are on this Earth. Figuring out how to register a company in Malaysia as a foreigner is not that confusing once you understand the basics!
I always hold on to this powerful life advice by Hannan Attaki:
“The God who takes care of you in your homeland is the same God who will take care of you in a foreign land.”
On a side note, if you are looking for a great looking website, we have various web design services, copywriting services as well as SEO services to help you boost your newly created website to #1!
All the best my foreign mates!
