Malaysia has always been a country that attracts a lot of interest from investors, whether international or local. Why investors would choose to have their company registration in Malaysia has a lot to do with the following factors:
- Company registration in Malaysia involves a low start-up costs if compared to other countries such as Singapore for example.
- A company registration in Malaysia allows that company to benefit from the country’s double taxation treaties if they are resident companies, which minimize the withholding taxes on fund transfers overseas. There are also no withholding tax levies on dividends which are made abroad by Malaysian owned businesses.
- Malaysia is ranked by the World Bank as the 6theasiest place in the world to do business and the country has also been ranked as the 25th most competitive economy in the world.
- A company registered in Malaysia would be eligible to be part of the free trade agreements which have been signed between Malaysia and six other ASEAN countries.
The company registration process in Malaysia involves going through the Companies Commission of Malaysia, known locally as the SSM. The SSM is the governing body that is responsible for all successful company incorporations in the country and every business must deal with them for the company registration process.
A company limited by shares is generally the most common type of business entity opted for when it comes to company registration in Malaysia. This particular business entity model provides limited liability status to its shareholders.
Investors who intend to use this option as their preferred company registration in Malaysia pathway would need to fulfil the following requirements:
- Have a minimum of one director who is at least 18 years of age and currently residing in Malaysia at the time of incorporation. The selected candidate must not have undergone bankruptcy, been convicted or imprisoned for the past 5 years.
- Have one company secretary who must be a member of any of the prescribed professional bodies or licensed by the SSM.
- Have a minimum paid-up capital of at least RM1.
- Have an official registered office in Malaysia where all business communication and notices may be addressed to. Investors could opt to have their secretarial office as the registered office if needed.
For a foreign investor who is not familiar with the local laws and the process of company registration in Malaysia, it is always a good idea in this instance to enlist the help of a professional service provider like Exotic Group. The benefits of working with a professional service provider include peace of mind for the investor as they know they will be in good hands with an expert to guide them through the process and ensure that their company registration in Malaysia is in compliance with all the existing statutes, laws and regulations.
What Are Company Registration Numbers?
In Malaysia, company registration numbers are numbers that identify a company and this number will be printed on their certificate of incorporation. A company registration number is unique to the business it is registered to, and no two businesses will be in possession of the same number.
There are three types of companies in Malaysia – The Public Liability Company, the Limited Liability Company and the general partnership type of company. What these companies have in common are only one thing, and that is, as a legally registered business in Malaysia, they will each have their own Malaysia company registration number.
Registration of businesses can be done at the Companies Commission of Malaysia, known locally as the Suruhanjaya Syarikat Malaysia or SSM.
A Malaysia company registration number is a unique combination of numbers. This number is important to the business because it is what your company identity is going to be known by. The numbers also prove that your company has been legally registered and is in fact an incorporated entity so it reinforces the business’s reputation among the people.
Are Malaysia Company Registration Numbers Needed For Ecommerce Businesses?
Yes, they are. Even if the businesses is an e-commerce business, as long as your business is a registered legal entity, you will have a company registration number. For an online business, the company registration number will need to be incorporated into their website. This step is enforced by the Malaysia Consumer Protection Regulations 2012, so it is imperative that if you ensure your business does have a company registration number, even if you do not have a physical office space.
Are Company Registration Numbers the Same As Company Tax Numbers?
No, a company registration number and the company’s tax number are two different things. While your company registration number will be used to identify your business in all legal matters and business dealings, your company’s tax number is what is used when audits and income tax filings are done every year. The income tax numbers of companies are known as unique taxpayer references. It is not the same thing as a company registration number.