Understand Sdn Bhd Company in Malaysia
Are you interested in registering an SDN BHD company but feeling overwhelmed by all the steps involved? Don’t worry – our Ultimate Guide to Register SDN BHD Company has got you covered!
In this guide, we’ll answer all your frequently asked questions about registering an SDN BHD company in Malaysia. From the requirements and procedures to the costs and timelines, we’ll provide you with everything you need to know to get started.
Whether you’re a first-time entrepreneur or an experienced business owner, our guide will help you navigate the complex process of registering an SDN BHD company and ensure that you’re on the path to success.
So why wait? Check out our Ultimate Guide to Register SDN BHD Company today and take the first step towards turning your business dreams into reality!
Understanding SDN BHD Companies: What Are They?
When it comes to setting up a business in Malaysia, one of the most common types of company structures is the Sendirian Berhad, or Sdn Bhd for short. But what exactly is an Sdn Bhd company, and why should you consider registering one for your business? We’ll take a closer look at the key features of Sdn Bhd companies.
Features of an Sdn Bhd Company:
- Limited Liability: One of the main advantages of an Sdn Bhd company is that it provides limited liability protection for its shareholders. This means that if the company were to face financial difficulties or legal issues, the shareholders’ personal assets would be protected.
- Separate Legal Entity: An Sdn Bhd company is a separate legal entity from its shareholders, which means that it can enter into contracts, own assets, and sue or be sued in its own name.
- Shareholders and Directors: An Sdn Bhd company can have between 1 and 50 shareholders. Shareholders can be individuals or companies.
- Paid-Up Capital: To register an Sdn Bhd company, you must have a minimum paid-up capital of RM1. However, it’s important to note that the amount of paid-up capital can affect the company’s ability to obtain financing, so it’s worth considering how much capital you’ll need before registering.
Benefits of Registering an Sdn Bhd Company
Credibility: Having an Sdn Bhd company can add credibility to your business, as it shows that you’re serious about your venture and have taken the necessary steps to establish a proper legal structure.
Branding: Registering an Sdn Bhd company allows you to use the “Sdn Bhd” suffix in your company name, which can help with branding and marketing efforts.
Tax Benefits: Sdn Bhd companies are subject to corporate tax rates, which are generally lower than personal income tax rates. Additionally, Sdn Bhd companies may be eligible for certain tax incentives or exemptions. Starting from 2023, Small and Medium Enterprises (SMEs) in Malaysia that have a paid-up capital not exceeding RM2.5 million and a gross income not exceeding RM50 million will enjoy a lower tax rate. The first RM150,000 of their chargeable income will be taxed at a rate of 15% only.
Investment Opportunities: An Sdn Bhd company can issue shares to raise capital, which can be a more attractive option for investors than loan financing. Additionally, having an Sdn Bhd company can make it easier to attract investors, as they may feel more confident investing in a structured and legally compliant business.
Overall, registering an Sdn Bhd company can offer a range of benefits for entrepreneurs and businesses in Malaysia. If you’re considering setting up a company, it’s worth taking the time to understand the requirements and benefits of an Sdn Bhd structure, and whether it’s the right choice for your business goals.
Choosing Your SDN BHD Company Name: Best Practices and Restrictions
Choosing the right name for your Sdn Bhd company is an important part of the registration process. But what are the best practices and restrictions to keep in mind when choosing your company name? In this post, we’ll provide some tips to help you choose a name that’s both appropriate and legally compliant.
Best Practices for Choosing Your Sdn Bhd Company Name:
- Keep it Short and Simple: A short and simple company name is easy to remember and can make it easier for customers to find you online. Avoid using long, complex words or phrases that are difficult to spell or pronounce.
- Make it Unique: Your company name should be unique and not similar to any existing company names in Malaysia. You can check for the availability of your proposed name on the MyData and MyCOID portal.
- Reflect Your Business: Your company name should reflect the nature of your business and the products or services you offer. This can help customers understand what your company does and what you stand for.
- Be Memorable: A memorable company name can help your business stand out from the competition. Consider using a creative or catchy name that’s easy to remember.
Restrictions on choosing your Sdn Bhd company name take precedence over your personal preference for the company name.
- Offensive or Misleading Names: Your company name cannot be offensive or misleading. This includes names that are likely to cause offense to any race, religion, or culture, or names that are misleading in any way.
Prohibited Words: The Companies Act 2016 prohibits the use of certain words in company names, such as “bank”, “trust”, “insurance”, and “university”. The use of these words requires approval from the relevant authorities.
Similarity to Existing Names: Your company name cannot be similar to any existing company names in Malaysia. This includes names that are phonetically or visually similar to existing names.
Trademark Infringement: Your company name cannot infringe on any existing trademarks. Before choosing a name, it’s a good idea to conduct a trademark search to ensure that your proposed name is not already registered by someone else.
Understand Registering an SDN BHD Company: Timeline, Costs, and Fees
If you’re considering setting up a Sdn Bhd company in Malaysia, it’s important to understand the timeline, costs, and fees associated with the registration process. In this post, we’ll provide an overview of what you can expect in terms of the timeline and expenses involved.
Timeline:
The timeline for registering an Sdn Bhd company in Malaysia can vary depending on factors such as the complexity of your company structure, the availability of required documents, and the responsiveness of the authorities. However, in general, you can expect the following timeline:
- Name Approval: The name approval process typically takes 1-2 business days, but may take longer if there are issues with the proposed name.
- Preparation of Documents: The preparation of the required documents can take up to 1-2 days.
- Filing of Documents: The filing of the documents with the Companies Commission of Malaysia (SSM) can take up to 1-2 business days.
- Issuance of Certificate of Incorporation: Once the documents have been approved, the SSM will issue a Certificate of Incorporation immediately.
The timeline provided is a general guideline and the process may take longer if obtaining name approval from SSM is not smooth or if document preparation and submission is not well prepared. However, at our firm, we can assist you in ensuring a smooth process and complete the entire process within two days.
Costs and Fees:
The costs and fees associated with registering an Sdn Bhd company in Malaysia can include the following:
- Name Search and Approval: RM 50 for each name search and name approval.
- Incorporation Fees: The incorporation fee for an Sdn Bhd company is RM 1,010.
- Professional Fees: Professional fees for legal and accounting services can vary depending on the complexity of your company structure and the specific services required.
In addition to these costs and fees, there are also ongoing compliance costs and fees, such as the retainer fee, annual filing of financial statements and annual returns with the SSM. Registering an Sdn Bhd company in Malaysia involves a timeline and costs that should be carefully considered when starting a business.
By understanding the timeline and expenses involved, you can plan and budget accordingly and ensure that the process runs smoothly. Seeking the advice of professional service providers can also help you navigate the registration process and avoid any pitfalls along the way.
Your Top FAQs Answered: Registering an SDN BHD Company
Yes, according to the Companies Act 2016, it is allow for a single director and shareholder to own and manage an SDN BHD company.
The minimum paid-up capital required to register an Sdn Bhd company in Malaysia is RM1, according to the Companies Act 2016.
A minimum of one shareholder is required to form a Sdn Bhd company in Malaysia, while the maximum is 50.
Under the Company Act 2016, foreigners can 100% own a Sdn Bhd Company in Malaysia as long as they have least one director must reside in Malaysia.
Yes, a Sendirian Berhad (Sdn Bhd) company in Malaysia can have a foreign director as long as at least one director is a resident of Malaysia. However, foreign directors may be subject to visa and work permit requirements. It’s recommended to seek professional advice to ensure compliance with all legal and regulatory requirements when appointing foreign directors in an Sdn Bhd company.
A Sdn Bhd company in Malaysia must have at least one director and can have up to 50 directors. Whereas, As per the Companies Act 2016, there is no statutory limit to the number of directors that can be appointed.
Anyone who is at least 18 years old, of sound mind, and not disqualified by law can be appointed as a director
Final Words
To sum up, registering an SDN BHD company in Malaysia can be a straightforward process with the right guidance. Our ultimate guide has covered the steps involved, documents required, costs and fees, and common concerns. If you need further assistance, our experienced company secretaries are here to help.