A Complete Guide to Setting Up a Sdn Bhd in Malaysia

Setting up a private limited company (Sdn Bhd) in Malaysia is a crucial step for any entrepreneur looking to establish a formal business entity. This guide will walk you through everything you need to know.

What is a Sdn Bhd?

A Sdn Bhd (Sendirian Berhad) is a private limited company in Malaysia. It's a separate legal entity from its owners, providing limited liability protection and making it an ideal structure for businesses looking to scale.

Requirements for Incorporation

To incorporate a Sdn Bhd in Malaysia, you need:

• Minimum 1 shareholder (can be individual or corporate)
• Minimum 1 director (must be a resident of Malaysia)
• Minimum 1 company secretary (must be licensed by SSM)
• Registered address in Malaysia
• Minimum paid-up capital of RM 1 (though RM 2 is recommended for practical purposes)

The Incorporation Process

Step 1: Choose Your Company Name

Your company name must be unique and comply with SSM guidelines. It should not:

• Be identical or too similar to existing companies
• Contain prohibited words
• Be misleading or offensive

Step 2: Prepare Required Documents

• Identity cards/passports of shareholders and directors
• Proof of registered address
• Company secretary appointment letter
• Memorandum and Articles of Association (M&A)

Step 3: Submit to SSM

Your company secretary will submit all documents to the Companies Commission of Malaysia (SSM) for approval.

Step 4: Receive Certificate of Incorporation

Once approved, SSM will issue a Certificate of Incorporation, officially establishing your company.

Timeline

On average, incorporation takes 3-5 working days when all documents are in order and submitted through a registered filing agent.

Benefits of Using a Professional Service

Working with a professional service like Foundingbird offers several advantages:

• Faster processing through registered filing agents
• Expert guidance throughout the process
• Digital platform for document management
• Ongoing support for compliance matters

Next Steps After Incorporation

Once your company is incorporated, you'll need to:

1. Open a corporate bank account
2. Register for taxes (GST if applicable, Corporate Tax)
3. Set up payroll systems (if hiring employees)
4. Register for EPF, SOCSO, and EIS (if hiring)

Conclusion

Incorporating a Sdn Bhd in Malaysia is a straightforward process when you have the right guidance and support. With proper preparation and professional assistance, you can have your company up and running in just a few days.

Ready to start your incorporation journey? Contact us today to get started!