FAQ
Q: What is company incorporation?
A: Company incorporation is the legal process of forming a new company or business entity.
It involves registering the company with the appropriate government authorities, such as
the Companies Commission of Malaysia (SSM), and obtaining a Certificate of Incorporation.
Q: Why should I incorporate a company?
A: Incorporating a company offers several advantages. It provides a separate legal entity,
limiting the liability of shareholders and protecting personal assets. It enhances the
credibility and reputation of the business, making it easier to attract investors and secure
financing. Additionally, it allows for easier transfer of ownership, perpetual existence, and
facilitates business contracts and agreements.
Q: What are the types of companies that can be incorporated in Malaysia?
A: In Malaysia, there are several types of companies that can be incorporated, including
private limited companies (Sendirian Berhad or Sdn Bhd), public limited companies (Berhad
or Bhd), and companies limited by guarantee. The choice of company type depends on
factors such as the nature of the business, ownership structure, and future growth plans.
Q: What are the requirements for company incorporation in Malaysia?
A: The requirements for company incorporation in Malaysia include having a minimum of
one director who is a Malaysian resident, a minimum of one shareholder (can be an
individual or corporate entity), a registered office address in Malaysia, and a minimum paid-
up capital. Additional requirements may include obtaining necessary licenses or permits
based on the nature of the business.
Q: How long does the company incorporation process take?
A: The company incorporation process typically takes around 5-10 business days, depending
on the completeness and accuracy of the documentation submitted, as well as the workload
of the relevant authorities. However, the timeline can vary based on various factors,
including the complexity of the company structure and the responsiveness of the applicant.
Q: Do I need professional assistance for company incorporation?
A: While it is possible to handle the company incorporation process independently, seeking
professional assistance, such as engaging a company secretary or accounting firm, can help
ensure compliance with legal requirements, expedite the process, and provide expert
guidance on company formation matters.
Q: Can foreigners incorporate a company in Malaysia?
A: Yes, foreigners can incorporate a company in Malaysia. However, there are specific
requirements and restrictions for foreign ownership depending on the business sector. It is
advisable to consult with professionals who are familiar with foreign company incorporation
regulations and can guide you through the process.
Q: What ongoing obligations do I have after company incorporation?
A: After company incorporation, there are ongoing obligations to comply with, such as filing
annual returns, maintaining proper accounting records, conducting annual general
meetings, and fulfilling tax obligations. Engaging a company secretary or accounting firm can
help ensure ongoing compliance and manage these obligations effectively.
