Things you must know before registering Sdn Bhd in Malaysia

At the very beginning, you should have a brief knowledge about Sdn Bhd. Sdn Bhd represents Limited Liable Company in Malaysia. Instead of using the term Private Limited, Malaysian law only accepts sdn. bhd. as suffix after company's name. Here it means legal business that is liable on limited shares.

Before registering such company, you must be aware of several requirements. Here in this article we will shortly discuss those Pre-requirements:

The company secretary is mandatory

Consider hiring a licensed secretary. As the secretary will carry out the whole registration procedures behalf of you.

The staff you hired will collect all the necessary forms that needs drafting. Then he/she need to Fill-up and submit to those forms to ministries and departments.

Submit Completed papers to the SSM

All company registration process in Malaysia goes through Suruhanjaya Syarikat Malaysia (SSM). This authorization body approves company registration and company naming.

Must need two directors and two shareholders

Another prerequisite of starting sdn bhd in this country is to have at least two directors. These directors must have legal residency permission in Malaysia. The company will also need at least two shareholders.

Keep in touch with SSM and LHDN

Another aspect of consideration is the income tax and employer's returns. SSM and Lembaga Hasil Dalam Negeri (LHDN) will keep regular accounts of these aspects.

Yearly financial flow

One last vital subject before thinking of starting a sdn bhd is the yearly capital flow.

You need to separate at least an amount of RM 1,200 for SSM and company secretary. Tax filing will further need RM 2,000 to RM2,500. For book-keeping you need an amount of at least RM8,000- RM9,000. Finally, you need to exclude about RM3,500 as Audit fee from your allocated budget.

A better way to know more about registering sdn bhd company is to consult with the S & F consulting farm. Professional and legal experts and business consultants here are standby to help you. If you have confusions about registration and prerequisites, feel free to contact us.