Choosing the right business name is a crucial step when starting a company in Malaysia. It’s not just about finding a catchy and memorable name; you also need to ensure it complies with the legal requirements set by the Companies Commission of Malaysia (SSM) before submitting your incorporation application.
This guide will walk you through the essential guidelines, restrictions, and tips for selecting a company name that aligns with Malaysian regulations and builds a strong brand identity.
Beyond choosing a compliant company name, there’s more to learn. Explore our comprehensive “Registration of Company in Malaysia: A Complete Guide to Company Registration in Malaysia” to ensure a smooth business setup.
Restrictions On Company Names
The Companies Act 2016 and the Companies Commission of Malaysia Act 2001 provide the foundation for company name regulations. These guidelines aim to assist applicants in reserving names for new companies or changing existing company names.
1. General Requirements
Before incorporating a company or changing its name, you must get confirmation from the Registrar that your proposed name is available. For new companies, this can be done during the incorporation process.
A company name is available if it’s not:
- Undesirable or unacceptable
- Identical to an existing business entity’s name in the Commission’s registers
- Identical to a name already reserved under the Companies Act 2016
- A name that the Minister has directed the Registrar not to accept
If the Registrar is satisfied with the name and you’ve paid the fee, they may reserve the name for 30 days (or longer if allowed).
2. Foreign Company Names
Foreign companies must register under their original name, subject to availability under section 26 of the Companies Act 2016. Any name changes for foreign companies must also meet these availability requirements.
3. General Principles for Acceptable Names
When choosing a company name, follow these principles:
a) Use correct spelling and proper grammar.
b) You can mix Malay and English to describe the business type, but follow proper grammar:
- Correct: “BB Construction Sdn. Bhd.” or “Klinik Ria Hebat Sdn. Bhd.”
- Incorrect: “Construction BB Sdn. Bhd.” or “Ria Hebat Klinik Sdn. Bhd.”
c) If using words not in Malay or English, provide their meaning.
For full details jump to this section:
Detailed Guidelines from the Companies Commission of Malaysia
Tips on Crafting the Perfect Company Name
Balance Branding with Regulations
The best company name is a combination of these elements:
- Brand Personality: Your company’s values and mission shine through
- Market Positioning: Your target audience and industry fit
- Legal Requirements: Comply with SSM guidelines
- Future Growth: Your business has room to expand
Use a Business Name Generator
Consider using a business name generator as a brand name generator or company name generator to spark ideas that align with these elements.
These tools help you quickly brainstorm catchy and unique company names.
Shopify’s AI Business Name Generator
https://www.shopify.com/tools/business-name-generator
Canva’s Business Name Generator
https://www.canva.com/business-name-generator
Wise’s Business Name Generator
https://wise.com/us/business-tools/business-name-generator
Digital Considerations for Company Names
Your company’s online presence matters as much as getting SSM registration approval. Many businesses face challenges when they can’t use their compliant business names on digital platforms. Here’s how to make your company name work naturally in the digital world, especially for e-commerce and online marketing.
Check if your company name is available everywhere:
- Domain Name
- Social Media Handles
- E-commerce Platforms
Getting found online makes a huge difference. Your business name should work well with search engines:
- Choose Distinctive Terms: Pick words that make your business stand out in search results
- Think About Local SEO: Add location-specific terms if they matter to your business
- Avoid Common Misspellings: Pick a company name people can spell and remember easily
Trademark Infringement
Using a company name similar to an existing trademark in the same or related industry could lead to infringement. Consider trademark search when choosing your company name.
Logo
Remember to consider your logo design alongside your business name, as these two elements work together to create a strong visual brand identity. With careful planning and creativity, you can develop a business name that not only meets legal requirements but also sets your company up for success in the competitive Malaysian market.
How To Run a SSM Company Name Search Using Altomate
When you are ready, check if your company name is available to be registered using our Free Company Name Search here.
It’s more convenient than SSM’s MyCoID Company Name Search which requires a MyCoID account and a branch visit to verify your identity.
Detailed Guidelines from the Companies Commission of Malaysia
To help you understand the full scope of company naming regulations, here’s a simplified yet detailed version of the official guidelines:
2. Prohibited Names
a) Names Suggesting Royal or Government Connections
You can’t use words that make people think your company is connected to:
- The Royal family (e.g., “Royal”, “King”, “Queen”, “Prince”, “Princess”, “Crown”, “Regent”, “Imperial”)
- Government departments (e.g., “Federal”, “State”, “National”)
- International organizations (e.g., “ASEAN”, “UNESCO”, “NATO”, “EEC”, “OPEC”)
b) Names Suggesting Other Connections
Don’t use names that make people think you’re connected to:
- Political parties
- Societies
- Trade unions
- Co-operative societies
- Building societies
c) Restricted Words
You need special permission to use these words: “Bank”, “Banker”, “Banking”, “Bumiputra”, “Bureau”, “Chamber of Commerce and Industry”, “Chamber of Manufacturers”, “Chartered”, “College”, “Consumer”, “Council”, “Credit”, “Exchange”, “Executor”, “Fair Price”, “Finance”, “Foundation”, “Fund”, “Guarantee”, “Institute”, “Insurance”, “Investment”, “Leasing”, “Made in Malaysia”, “Prime”, “Registry”, “Treasury”, “Trust”, “Unit Trust”, “University”
d) Other Prohibited Names
- Names that might mislead people about what your company does
- Names that might offend people
- Names that are too similar to other registered companies
- Translations of names of other registered companies
3. Names Controlled by Other Laws
Some words are controlled by other laws. You need special permission to use them:
- Banking words (e.g., “bank”, “finance”, “merchant bank”)
- Stock market words (e.g., “stock exchange”, “securities trading market”)
- Insurance words (e.g., “insurance”, “assurance”, “underwriter”)
- Money changing words (e.g., “money changer”, “foreign exchange”)
- Real estate words (e.g., “estate agent”, “property agent”)
- Accounting words (e.g., “taxation”, “accounting”, “auditor”)
- Medical words (e.g., “clinic”, “medical laboratory”, “homeopathy”)
4. Names Regulated by Government Agencies
Some words need approval from specific government agencies:
- “Labuan Offshore”, “Offshore Company” (need approval from LOFSA)
- “architect” (need approval from Malaysian Architect Board)
- “college”, “university” (need approval from Ministry of Education)
- “co-operative” (need approval from Department of Co-operative Development)
- “aviation”, “airlines” (need approval from Department of Civil Aviation)
- “engineer” (need approval from Malaysia Engineer Board)
- “accountant” (need approval from Malaysia Institute of Accountants)
5. Names Limited Due to Public Interest
Some names are restricted because they’re important to the public:
- Names of famous companies (e.g., “Astro”, “Petronas”, “Telekom”)
- Words like “Cyber”, “Putrajaya”, “MSC/Multimedia Super Corridor”
- Words related to gambling (e.g., “sweepstake”, “lottery”)
- Government slogans (e.g., “Vision 2020”, “Malaysia Boleh”)
6. General Rules for Good Company Names
- Use correct spelling
- If you use words that aren’t in Malay or English, explain what they mean
- Don’t use offensive words
- Don’t use religious words
- Avoid names that are too general (e.g., “Beautiful Sdn. Bhd.”)
- If you use a person’s name, it should be a director’s name or a close family member
- If you make up a word, explain what it means
- Don’t use short forms that might confuse people (e.g., don’t use “IBM” if you’re not IBM)
Conclusion
Selecting a business name in Malaysia requires a balance between creativity, compliance, and digital considerations. By understanding the legal framework, leveraging creative naming strategies, and considering your online presence, you can choose a name that not only meets regulatory requirements but also sets the foundation for a strong, memorable brand. Remember, your company name is often the first point of contact with your target audience, so make it count!
When brainstorming business name ideas, consider using a name generator to spark creativity. However, always ensure that the generated names align with SSM guidelines and your brand identity. A well-chosen name can significantly impact your marketing efforts, customer recall, and overall business success.
As you embark on your entrepreneurial journey, whether you’re launching a startup, small business, or e-commerce venture, take the time to develop a comprehensive naming strategy. This approach will help you create a unique, catchy, and legally compliant business name that resonates with your target audience and supports your long-term goals.
Now that you’ve got the company name basics, take the next step. Our “Registration of Company in Malaysia: A Complete Guide to Company Registration in Malaysia” covers everything from name approval to post-registration essentials.
