Setup a Company In Malaysia· Newly incorporation Sdn Bhd will require any incorporation of Sdn Bhd (Sendirian Berhad) to appoint a licensed Company Secretary for the company. · Since 31st January 2017, the incorporation of Sdn Bhd (Sendirian Berhad) will require only one person acting as a director. |
Minimum requirements to form a Malaysia Company (Sdn Bhd)
The requirements to form a company are:
- A minimum paid-up capital of RM1 only
- A minimum of one (1) subscriber to the share(s) of the company
- A minimum of one director who is at least 18 years of age and is residing in Malaysia and they are not bankrupt and has not been convicted and imprisoned for the past five years.
- A minimum of one Company Secretary (Company Secretary must be a member of any one of the prescribed professional bodies or licensed by the SSM).
- Must have a resident address in Malaysia to which all communications and notices may be addressed. It is standard practice in Malaysia to have the secretarial office as the registered office.
| What is different of Company vs Sole Proprietor vs General Partnership and LLP in Malaysia?
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| Company (Sdn Bhd) | Limited Liability Partnership (LLP) | Partnership | Sole Proprietorship | |
| Capital Contribution | Share Capital | Partners Contribution | Partners Contribution | Owner Contribution |
| Legal Owner of Entity | Shareholders | Partners | Partners | Sole Proprietor |
| Max number of Owner | No maximum number, unless private company (50 persons) | More than 2 persons and no maximum limit | More than 2 persons(but not more than 20 persons) | Single person |
| Legal Status | Separate legal entity | Separate legal entity | Partners | Sole Proprietor |
| Law and Regulation | Companies Act 2016 | Limited Liability Partnership Act 2012 | Registration of Business Act 1956 | Registration of Business Act 1956 |
| Responsible Person to Business Management | Board of Directors | Partners | Partners | Sole Proprietor |
| Statutory Audit Requirement | Yes | No compulsory | No | No |
| Company Secretary/Compliance Officer | Yes, Company Secretary | Yes, Compliance Officer | No | No |
| Income Tax Status | Tax on Company | Tax on LLP | Tax on Personal | Tax on Personal |
| Income Tax Rate | On 17% on 1st RM600,000 and 24% on next RM600,000 onwards | On 17% on 1st RM600,000 and 24% on next RM600,000 onwards | Scale rate from 0% to 30% | Scale rate from 0% to 30 % |
