Company Formation

COMPANY FORMATION

1. Who can become a director of a Private Limited Company/ Sdn Bhd?

A person must be of age 18 years and above.
A person must not be an Undischarged Bankrupt
A person must not been convicted whether within or without Malaysia of any offence:-

(a) in connection with the promotion, formation or management of a corporation;

(b) involving fraud or dishonesty punishable on conviction with imprisonment for three months

or more; or

date of this declaration.·

A person must not been imprisoned for any offence referred to the above offences within the period of five years preceding his appointment.
At lease two directors who each has his principal or only place of residence within Malaysia

2. Can a foreigner become a director of a Private Limited Company/ Sdn Bhd?

YES! A foreigner can become a director of any private limited company as long as he/she fulfill the requirement sets in No. 1 above

3. Who can become a company secretary of a Private Limited Company/ Sdn Bhd?

A member of MIA (Malaysia Institute of Accountants)
License Secretary of SSM (Suruhanjaya Syarikat Malaysia) ie. Registrar of Companies
Member of MAICSA (Malaysian Institute of Chartered Secretaries and Administrators)
Lawyer in Malaysia

4. Factors to consider when forming a Company

Is he/she is a qualified to act as Company Secretary? (Appointing a person who is not a qualified Company secretary may lead you toward endless troubles in the future. Qualified Company secretary must be a Chartered Accountant -MIA, Chartered Secretary, lawyer or License Secretary holder)
Did he/she have an office or merely operate from home?
Did he/she offer on time and good services? (Some firms takes weeks to prepare a resolution)
Pricing, Secretary fee per month, unreasonable disbursements charges, advance secretary fee payment for new incorporation etc.
Did he/she provide long term support and advice on company secretarial matters?
Did he/she capable of providing sufficient information and advice on corporate matters?

5. How to know that a Person is member of MIA, MAICSA, Lawyer or License Secretary?

6. There are two simple steps to form a Sdn Bhd in Malaysia:

Name Search (doesn’t required signature from directors/ shareholder.) Will get the result in 1 working day
Submission of documents ( Required signature of all the directors and shareholders) will be ready in 3 working days

7. Information required for incorporation are as follows:

8. What is the Charges for Formation of a company

9. When we will start to process your application for setting up Sdn Bhd?

We will only process the application for name search upon receive of the Deposit of RM300.00
We will only submit the documents upon receive the balance of RM1,388.00

10. Why we have the above collection policies?

This is because we have to pay SSM (Suruhanjaya Syarikat Malaysia, ie Registrar of Companies) RM1,000.00 when we submit the documents for incorporation in Step 2. (This is for authorize capital of RM100,000)
Besides, we have to do Stamping on the M&A before submission and this will cost us RM200.00.
We have to order common seal, minutes book, register book, share certificate book etc.
On top of that we already incurred staff cost, printing, traveling etc in preparation of all the documents for submission

11. What are the RM1,688 for?

It's also inclusive 5 sets of the following Certified True Copy (CTC) documents:

12. Payment Term:

RM300 deposit upfront (Not refundable)
Balance of RM1,388 is payable upon approval of the company name. (it’s also not refundable because we have to pay to SSM for registration by the time we submit the document.)

13. Our secretarial fee & charges:

14. What is CCM?

CCM is the short form of The Companies Commission of Malaysia, it's a government body regulate companies and business in Malaysia (http://www.ssm.com.my/)
CCM is not short form of some of the company secretary's website which aimed at creating confusion to the public.
We received numerous complaint from our clients on the above confusion.

15. Can I form a Sdn. Bhd. all by myself?

Yes if you are a qualify person to act as the company secretary (please refer answer for Q:3)