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As an important economy in Southeast Asia, Malaysia is becoming an important target for Chinese and international companies due to its stable regulatory environment, multilateral trade advantages and flexible business structure. Based on the official information from the Companies Commission of Malaysia (SSM), this article provides you with a systematic introduction to the company registration process, regulatory compliance requirements and key considerations.

I. Statutory regulatory bodies

All business registration and corporate regulatory affairs are handled by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM) Unified Responsibility.SSM is responsible for registration of companies and business entities, disclosure of information, compliance monitoring and public search services under the Companies Act, 2016 and the Business Registration Act, 1956.

II. Selection of main registration subjects and structures

SSM offers three main types of business form registrations:

1️⃣ Private Limited, Sdn. Bhd.: The most popular type of company, independent legal entity, limited liability for shareholders, 100% foreign shareholding is available, and the number of shareholders does not exceed 50.
2️⃣ Sole Proprietorship / Partnership: Suitable for small local business, easy registration but unlimited liability for shareholders.
3️⃣ Limited Liability Partnership (LLP): Combines the advantages of partnerships and corporations with a flexible structure for professional services businesses.

III. Core Requirements for Registration of a Private Limited Company (Sdn. Bhd.)

IV. Registration process and time

1️⃣ Company Name Check and Reservation (MyCoID Platform)
2️⃣ Submission of company registration application (including information on directors, shareholders, address, articles of association, etc.)
3️⃣ Payment of registration fees (name approval fee, registration fee)
4️⃣ Certificate of Incorporation issued.
5️⃣ Appointment of company secretary, opening of bank account
6️⃣ Apply for relevant industry licenses and tax registrations according to business needs

Registration time: generally 1-3 working days to complete the approval.

V. Legal Requirements for Local Directors and Secretaries

The Malaysian Companies Act clearly states that every company must have at least one director who is ordinarily resident in Malaysia. The term "ordinarily resident" in this context includes Malaysian citizens, permanent residents or holders of long term residence visas (e.g. work visa, MM2H, etc.).

A company's registered address is required but does not replace the director's residency requirement. The company secretary must be a licensed professional.

VI. Compliance and annual review obligations

• Companies must file annual returns and financial statements with SSM every year

• Audited financial statements must be submitted if the company's annual turnover meets the statutory thresholds

• All tax returns and employer contributions (EPF, SOCSO, etc.) must be filed on time.

VII. Strengths and risks

✅ Strengths

• Well-established legal system and high international reputation

• Wholly foreign-owned support for most industries

• Proximity to ASEAN and Islamic markets and trade facilitation

• Regional tax benefits and investment incentives

⚠️ Risks

• Must have a local director

• Special licenses required for some industries

• Stringent compliance requirements require long-term maintenance

Xin Cheng Group can provide you with

• Pre-certification of name and preparation of registration documents

• Company Secretary & Local Director Solutions

• Bank Account Opening and Industry License Application

• Annual Tax Audit and Accounting Services

• Investment Structure Design and Risk Aversion Recommendations

💡 If you are planning to enter a specific industry or need a new Malaysian structure design, we can provide professional customized solutions, detailed registration flow charts and cost breakdowns. Please feel free to contact us!