COMPANY FORMATION
회사 설립 서비스 – 말레이시아 [회사 설립요건]2020-07-23T14:40:38+09:00

Overview of Malaysia companies

CORPORATE

Type of Offshore CompanyPrivate Limited Company
Type of LawCompanies Act 2016
Allowed Business Activities
Local Registered Office/ Agent RequiredYes
Change of DomicileYes
Shelf companies AvailableYes
Language of DocumentsEnglish
Name of CompanyEnglish
Corporate SealA metal corporate seal is optional

DIRECTORS

EligibilityAny person aged 18 years and above
Minimum Number of Directors1 (individual and no body corporate)
Disclosure to Authorities & PublicYes
Residence RequiredAt least 1 director must be residing in Malaysia
Nominee Director AvailableYes
Location of MeetingsAnywhere

COMPANY SECRETARY

Secretary RequiredYes, Local (must be residing in Malaysia).
Can be provided by Korchina TNC

SHAREHOLDERS

Minimum number of shareholders1
Maximum number of ShareholdersMore than 20 to 50 for Private Company
EligibilityAny person of any nationality or body corporate
Disclosure to Authorities & PublicYes
Nominee shareholders availableNA
Annual General MeetingsRequired
Location of MeetingsMalaysia

SHARES

Minimum Number of shares1
Maximum Number of sharesUnlimited
Bearer Shares PermittedNA
Classes of shares permittedOrdinary shares, preference shares, redeemable share and shares with or without voting rights.

SHARE CAPITAL

Permitted currenciesRinggit Malaysia (RM)
Minimum paid-up share capitalRM1.00
Maximum share capitalUnlimited
Recommended share capitalMin. RM1.00
Requirement to be paid upNo

Restrictions on Name

  • Names which are identical to a sole-proprietorship / partnership name or to that of any other company, corporation, limited liability partnership or limited partnership
  • Names which are identical to a name being reserved under the Business Registration Act, the Companies Act, the Limited Liability Partnerships Act or Limited Partnerships Act
  • Names which the Minister has directed the Registrar not to accept for registration e.g. “Royal”, “King”, “Queen”, “prince”, “Princess”, “Crown”, ‘Regent”, or “Imperial”;
  • Undesirable and unacceptable

Financial Statement Requirements

Every Malaysia companies must prepare annual audited financial statements and appoint an auditor within 18 months from the date of incorporation and, who must be a member of the Malaysian Accounting Standards Board and hold a practising certificate. Subsequently, audited financial statement must be prepared within 6 months of the company’s financial year-end. However, under the amended law, it is not mandatory for dormant companies, Zero-Revenue Companies and Threshold-Qualified Companies whose revenue not exceeding RM100,000 and its total assets do not exceed RM300,000 to have their accounts audited. The company must keep accounting records, which may be kept at the registered office address or elsewhere at the discretion of the directors.

Annual Filings/ Requirements

  • Filing of Annual Return (must be filed with the Registrar not later than 30 days from the anniversary of its incorporation date)
  • Audited/Unaudited Accounts
For a public company listed or quoted on a Bursa Malaysia:

Accounts presented at the AGM shall be made up to a date not more than 4 months before AGM

In case of any other company:

Accounts presented at the AGM shall be made up to a date not more than 4 months before the AGM

  • Filing of Corporate Tax (tax computation and LHDN Income Tax Form)
  • Renewal of Business Registration (for sole proprietorship and partnership)

Malaysia Income Tax System – Key Facts

  • Income tax in Malaysia is imposed on income accruing in or derived from Malaysia except for income of a resident company carrying on a business of air/sea transport, banking or insurance, which is assessable on a world income scope.
  • Income attribute to a Labuan business activity of Labuan entities including the branch or subsidiary of a Malaysian bank in Labuan is subject to tax under the Labuan Business Activity Tax Act 990 instead of the Income Tax Act 1967. A Labuan entity can make an irrevocable election to be taxed under the Income Tax Act 1967 in respect of its Labuan business activity.
Classes of income
  • Gains or profits from a business;
  • Gains or profits from employment;
  • Dividends, interest or discounts;
  • Rents, royalty or premium
  • Pensions, annuities or other periodical payments not falling under any of the foregoing classes;
  • Gains or profits not falling under any of the foregoing classes.

For personal taxes, the tax year is the normal calendar year i.e. January 1 – December 31. Deadline for filing a personal tax return is before 30 April of the following year. For corporate taxes, a company is free to decide on its financial year. Deadline for filing a corporate tax return is within 7 months from its financial year-end.