Things to prepare after you incorporate company in Malaysia
The incorporation process of a Company (“Sdn Bhd”) in Malaysia is straight forward and simple now. It costs only RM1,299 to incorporate a Company with us in Malaysia. Altomate is a digital corporate services provider that provide efficient and best in class incorporation experience.
After your company is incorporated in Malaysia, you will be receiving the following Company registration no and Companies Commission of Malaysia (SSM) incorporation documents/forms on your successful company set up:
- Section 14 Superform
- Section 15 Notice of Registration
- Section 17 Certificate of incorporation
To appoint company secretary
Under Sec 236 (1) of Companies Act 2016, a Company is required to appoint its company secretary within thirty (30) days from the date of incorporation a company. (a Company secretary shall be one that is registered with SSM and holds a valid practising certificate).
The Company secretary will usually charge RM100-200 per month for the provision of company secretary retainer services and the use registered office address.
The Company secretary once appointed, will be the person primarily advise on the compliance of Companies Act 2016 and the liaison person with SSM on the filing and lodgement of company matters.
Opening of Business Current Account
Starting a business in Malaysia, company bank account is a must to have as you will need it to receive sale collection from the customers and make payments to the suppliers.
There are a number of commercial bank in Malaysia offers business banking solution such as Alliance Bank, United Overseas Bank (UOB), Public Bank, Maybank and etc. To choose the bank, you should consider:
- The customer service and response of the bank
- Branches and convenience of banking to your business
- Deposit and account opening requirements
- User friendliness of internet and mobile banking. Certain banks offer very convenient bank feed that can connect to accounting software
- and etc
Here at Altomate, we recommend the services of our preferred banking partner-
- Alliance Bank Berhad
- United Overseas Bank (UOB).
Both offers great customer service with door step account opening for your greatest convenience. For Altomate customer, they also give special privileges such as special interest for business current account, bank fee waiver and etc.
Business/Trading License Application
Depending on your business nature, you may need to apply business license, permits and approval to commence your business activities. Business license usually can be applied from the relevant local authorities (depending on your location of business) and ministries (depending on the industries and activities).
Generally business licenses can be categorized into 3 groups of licenses:
a) General licenses- This relates generally to every business. Such as company or business registration with, registration with Inland Revenue Board (IRB), registration with EPF, PERKESO and etc
b) Sector Industry Specific licenses- This relates to the industry you intends to start your business. Below are some examples:
- Professionals such as Lawyer, Accountant, Surveyor, Doctor, and etc shall register and obtain practising certificate with the relevant governing bodies
- General trade – to apply trading and signboard license with local authorities such as DBKL, MBPJ, MPSJ and etc
- Manufacturing industry- to apply manufacturing license with Malaysian Investment Development Authority (MIDA)
- Construction industry- to apply construction license with Construction Industry Development Board (CIDB)
- Telecommunication industry- to apply license with Malaysian Communication and Multimedia Commission (MCMC)
c) Activity Specific licenses- This relates some particular activities could be applicable to one more industries or sectors. The authority impose certain requirements as to how particular activities to be carried out and complied, such as:
- Certificate of Fitness for Certified Machinery
- Building plan approval
- Certificate of bomba
As part of the efforts to digitize government services, the Malaysian government has launched a great portal where you can find relevant guideline and to apply your business license. Please visit https://malaysiabiz.gov.my/en.
To register with tax authorities
Registration with Inland Revenue Board (IRB)
Once your company is incorporated in Malaysia, IRB will receive your company incorporation details and will automatically register account with IRB. You will be given 2 tax registration number, namely:
- No. Cukai Pendapatan, also known as C number (it is the company corporate income tax number)
- No. Majikan, also known as E number (it is the company employer income tax number)
Registration with Royal Malaysian Custom Department (RMCD)
The registration with RMCD as a Sales and Services Tax (SST) registrant shall depends on the business you are involved in. The SST comprises of these two key elements, which are
- Sales Tax, a single stage tax levied on imported and locally manufactured goods, either at the time of importation or at the time the goods are sold or otherwise disposed of by the manufacturer.
- Service Tax, Service tax that is a tax charged and levied on taxable services provided by any taxable person in Malaysia in the course and furtherance of business.
To learn more whether your business is liable to register for SST, please read or consult our specialized team for assistance.
To register with Employees Provident Fund (EPF), Social Security Organisation aka (SOCSO) and Human Resource Development Corporation (HRD Corp)
When you decide to start your first hire or even paying yourself salary, you will need to start to register with the relevant agencies below:
- Employees Provident Fund (EPF) – Employees’ Provident Fund (EPF) or Kumpulan Wang Simpanan Pekerja (KWSP) is a government agency that manages the retirement planning and compulsory saving for private sector employees. You are required to register and contribute pension fund contribution for your employee.
- Social Security Organisation aka (SOCSO)- SOCSO (Social Security Organisation) or also known as PERKESO (Pertubuhan Keselamatan Sosial) is a government agency established to provide social security protections to employees in Malaysia. You are required to register and contribute on social security work insurance and employment insurance system for your employee.
- Human Resource Development Corporation (HRD Corp)- Human Resources Development Fund (HRDF) is established based on the Human Resources Development Act 1992 or currently known as Pembangunan Sumber Manusia Berhad Act 2001 (PSMB). You are required to register if you employ 10 or more Malaysian local employee. Once registered, you are to contribute HRDF levy for your employees.
To set up proper accounting system and record keeping
Regardless of the types of companies you set up, keeping proper accounts is always one of the biggest headache for many business owners. While you are busy with starting your business, marketing to your customers and building up your team, you should not neglect the importance of proper accounts.
It is often said it is important to start it right. Get good advice from your accountant or us on how to set up proper accounting system and workflow that can help to ease your mind to have the accounts closing automatically.
With our expertise in accounting and technology, we often help the clients to set up accounting system and workflow that are:
- Digitally on cloud and powered by smart automation
- Customized for industry need and workflow (such as integrating with e-commerce website, shoppe/Lazada, point of sale system and etc)
- Real time data synchronization and improved efficiency by connecting with third party apps (such as direct bank feed, payroll app, analytical tools, and etc)
- Timely and insightful financial report that can help business owners to make informed decision
Proper accounts not only help you with your decision making, it also save you from unnecessary compliance and tax penalties!
subscribe accounting, bookkeeping, taxation service from Altomate, contact email@example.com