There are few different methods in legal structure to register your new venture or company in SSM Malaysia:

A) (LLC )Limited Liability Company also know as Sendirian Berhad (Sdn. Bhd.) in Malaysia
B) (LLP) Limited Liability Partnership 
C) Partnership or Individual Company  (Sole-proprietorship) 

The best option for consideration on which type of registration would suit your business is based off the size and scalability of your business.

The best recommendation will Option A to register a Limited Liability Company (Sdn. Bhd.) as it offers the following advantages:

  1. A vehicle to do business that protects your personal wealth as this is a separate entity legal structure and the Company will be having a limited liability up to its paid-up capital
  2. Tax advantages as the Malaysia government allocate more tax saving plan for small and medium business in terms of tax incentives and better tax rates.
  3. Better monitoring and control for Sales and Services Tax (SST) under a Company
  4. A vehicle to access a variety of sources of financing from Banks loan, Investor and even capital market ie. ACE Market.
  5. Use Company as a Special Purpose Vehicle (SPV) as an investment holding company and joint venture project.
  6. Gives more value as compared to the cost of starting and maintaining a company which is affordable for all type of businesses.

Do contact us to assist on this matter as we have the right expertise and resources to give a one-stop solution on starting your business, growing your business to globalise your business.

Here are the budget and plans before starting

1. Select 1 or more company’s name for name search availability

2. Under the new Company Act 2016, minimum One director and shareholder

3. Check with your banker to make sure that they accept your company to open a bank account with them. We got strong contact with bankers if you need our help.

4. Budget estimate at RM2,700 for yearly professional charges for your company. Estimated fees for a company having a turnover of RM500k:

A) Secretarial & SSM filing fee (RM 1,200)
B) Tax filing fee (RM 1,500)

5. You need to engage a full-time clerk or part time account person to help you to prepare a full set of accounts for audit and tax purposes.

6. To open an income tax file number with LHDN once the company start to issue bill/invoice.

7. To register with IRB (LHDN) as Employer (E number) when start hiring staff

8. Contribute EPF, SOCSO and EIS for your staff is statutory requirements

9. If you are paying your staff more than RM3,000 per month, deduct PCB from their pay and remit it to LHDN

10. If you are withdrawing director’s salary from the company, please contribute EPF, SOCSO and EIS for yourself

11. If you are withdrawing director’s fee from the company, then you do not need to contribute EPF, SOCSO and EIS

12. Apply for SST license if your company’s yearly sales for taxable goods and taxable services is expected to be more than RM500,000 and RM1,500,000 for a restaurant. Refer to Taxable Services threshold table.

13. Need to get trading/signboard licenses from local authorities/governments (DBKL, MBPJ, MBSJ, MBAJ, etc…) before opening your shop/office