Malaysia is one of the leading economic countries in South-East Asia. The continuous economic development made Malaysia rank higher on world bank ease of doing business rank. The strength of the Malaysia market includes stable political condition, a strong economy, well developed financial sector, and excellent infrastructure. These are the reasons, why most of the foreign company and entrepreneurs want to establish or move their business in Malaysia.
Every country has its own rules, regulation, and policies of company registration. If you think the business registration procedure is almost the same in every country, then you are thinking it wrong. In Malaysia for doing a business registration, you need to go through various documented procedures. The documented procedures vary depending on the type of business you want to operate in Malaysia. However, this article is going to describe some misconception about company incorporation in Malaysia.
Opening a Corporate Bank Account is Not a Problem
Opening a corporate bank account is essential for every business for the financial transaction. If you are Malaysian local than opening a bank account might not be a problem, but it can be problematic if you are a foreigner. Even after completing all the process of company registration the bank may still refuse to open an account. To open a corporate bank account –
- All the director of the company must be physically present at the bank.
- Documents such as the director’s passport copy, company incorporation papers, board meeting resolution copy, and tenancy agreement papers are required.
- The directors of the company must hold work permit approval.
- Must deposit minimum capital of RM 500000 if you are a foreign investor.
As a foreigner, you cannot open a corporate bank account in any local banks. Each international bank has its condition and policies which are sturdy enough for small size business organization.
Appoint of Malaysian Company Secretary Is Not Mandatory
Many people have misconceptions of appointing a company secretary. Most of the people think appointing a Malaysian company secretary is not mandatory. But according to the law of the Company Commission of Malaysia, every corporate business must appoint a company secretary.
- You must appoint a company secretary within 40 days of business incorporation.
- The company secretary must be licensed by the company commission of Malaysia (SSM).
- Must be at least 18 years old
- The secretary must not have any criminal record.
A company secretary is an essential member of a company. He/she is responsible for handling all paperwork’s, legal documents and procedural matters that are required to run the company legally.
Registering Your Business by Your Own
Many business entrepreneurs want to register their business on their own instead of paying an extra amount to any consulting firm. However, registering your business on your own is a good idea, but it can be problematic if you don’t know the actual procedure. Most of the entrepreneurs start registering on their own and failed miserably. As a result, they waste their valuable money and time. Therefore, it is recommended to take advice and help from an expert or company registration consultant to ease the process of company registration.
I Can Use Any Name for My Business Registration
Yes, you can register your business name according to your choice, but there are some rules and condition. You cannot choose any name that is already registered within the company commission of Malaysia. To register your business name, you must submit at least three names of your choice through an application. The company commission of Malaysia (SSM) will verify your names before they approved the name for company registration.
- The company secretary is responsible for company name search and booking of the name.
- The company secretary is also responsible for preparing incorporation documents including the approval of name registration.
Registering a company in Malaysia is not an easy process. You need to go through several documented procedure to register your company. However, the registration procedure varies depending on the type of company that you want to register in Malaysia.
There are many misconceptions of company registration in Malaysia. Most of the people think registration of a company is an easy process but honestly, it’s not. Company registration in Malaysia is a very complicated process. Therefore, you must consult with someone who has years of experience with Malaysian company registration procedure.