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With Malaysia’s increasing attractiveness for investment, many entrepreneurs and investors view it as a strategic market for business expansion, market penetration, and long-term growth. However, the company registration process involves multiple legal and administrative requirements. This article provides FAQs regarding the registering a company in Malaysia.

What are the requirements to serve as a company director?

• Must be a natural person;
• At least 18 years old;
• No record of bankruptcy or criminal offenses;
• Must primarily reside in Malaysia or have Malaysia as their sole place of residence;
• Any person aged 70 or above cannot be appointed as a director of a public company or its subsidiary unless approved by at least 75% of shareholders at a general meeting.

What are the main responsibilities of a company director?

• Manage the company’s business in accordance with the company’s constitution and laws;
• Disclose interests in contracts, properties, offices, etc.;
• Fulfill disclosure obligations under Section 219 of the Companies Act 2016;
• Notify any changes in information (e.g., address changes, resignation, etc.);
• Comply with all company compliance requirements.

Is it mandatory to appoint a company secretary after registration?

The Companies Act requires a company to appoint its first secretary within 30 days of incorporation. The secretary must be an adult residing in Malaysia and a member of a professional body or a licensed secretary approved by the Companies Commission of Malaysia (SSM).

How long does it take to successfully register a company?

Company registration in Malaysia is relatively fast. With all documents in order, the process from name approval to completion of registration typically takes 1-2 weeks.

When must a company prepare its financial statements?

According to Section 248(1) of the Companies Act 2016:

• First financial statements: Must be prepared within 18 months from the date of incorporation.
• Subsequent financial statements: Must be prepared within six months after the end of the company’s financial year.

When should a company submit its annual return?

Under Sections 68 and 576 of the Companies Act 2016, the annual return must be submitted within 30 days from the anniversary of the company’s registration date in Malaysia, or within an extended period allowed by the Registrar in special circumstances.

What are the common reasons for bank account rejection?

• Inability to provide proof of actual business activities (e.g., contracts/purchase orders);
• Unclear or negative background of stakeholders;
• Insufficient business plan;
• Company operates in a high-risk industry;
• Failure to provide sufficient proof of fund legitimacy or presence of tax violations.

Do financial statements need to be presented at the annual general meeting?

For private companies, financial statements and reports only need to be distributed to members and do not need to be presented at the annual general meeting.

Why might a subsidiary name application be rejected?

The applicant must attach a letter of consent from the holding company to establish a subsidiary. Name approval also depends on the similarity to existing company names.

What is the preferential tax rate for small and medium-sized enterprises (SMEs)?

The corporate tax rate in Malaysia is 24%. Starting from the 2017 tax year, for SMEs incorporated in Malaysia (with paid-up capital not exceeding RM 2.5 million and not part of a group of companies exceeding this limit), the first RM 600,000 of income is taxed at 18%, reduced to 17% in 2019, with the excess taxed at 24%.