How to Create a Sdn Bhd in Malaysia: Complete Guide by Eternity Global Consultancy

Incorporating a Sdn Bhd in Malaysia is a strategic choice for entrepreneurs who want to establish a credible business, protect personal assets, and enjoy professional advantages. A Sdn Bhd, or Sendirian Berhad, is a private limited company that allows shareholders limited liability and separates personal assets from company obligations. In this guide, Eternity Global Consultancy provides a detailed step by step process on company setup, appointing a Company Secretariat, and fulfilling legal compliance for your new business.

Understanding Sdn Bhd in Malaysia

A Sdn Bhd is legally recognized as a separate entity from its shareholders. This structure offers several benefits that make it ideal for startups, small and medium enterprises, and established businesses alike. Key features include:

• Limited Liability: Shareholders are only liable for unpaid shares.
• Separate Legal Entity: The company can own property, sue, and be sued in its own name.
• Shareholders: Between 1 and 50 individuals or corporate entities.
• Directors: Minimum 1 Malaysian resident director is required.

For more information on company types and legal advantages, visit the Companies Commission of Malaysia (SSM).

Requirements for Incorporating a Sdn Bhd

Before starting your company setup, ensure you meet the following requirements:

• Unique Company Name: Must be approved by SSM.
• Directors: At least one Malaysian resident director.
• Shareholders: Minimum of one and maximum of fifty.
• Company Secretary: Appointment within 30 days after incorporation is mandatory.
• Paid-Up Capital: Minimum RM1 is required, though RM1000 is recommended for credibility.
• Registered Address: Physical office address in Malaysia is necessary.

Choosing the right structure and fulfilling requirements ensures smoother compliance and legal protection for your business.

Step by Step Process to Incorporate a Sdn Bhd

1. Choose and Reserve a Company Name

Start by conducting a name search via the SSM MyCoID portal. Ensure your company name is unique and not infringing on trademarks. Once approved, the name will be reserved for 30 days, giving you time to prepare incorporation documents.

2. Prepare Incorporation Documents

Key documents required include:

• Form 48A: Declaration by directors and promoters.
• Form 6: Declaration of compliance for the company.
• Company Constitution: Optional but recommended for outlining the company’s rules.

3. Submit to SSM

All forms can be submitted online via the SSM portal. Pay the registration fee based on your paid-up capital. Once approved, SSM issues the Certificate of Incorporation, officially registering your business.

4. Appoint a Company Secretary

Under Malaysian law, a Sdn Bhd must appoint a Company Secretariat within 30 days of incorporation. A licensed secretary ensures compliance with statutory requirements and handles filings such as annual returns and updates to the register of directors and shareholders.

5. Register for Taxes and Licenses

After incorporation, register for tax with the Inland Revenue Board of Malaysia (LHDN) and obtain any necessary business licenses based on your industry. Compliance with statutory obligations is critical to avoid fines and penalties.

Why Engage Eternity Global Consultancy for Your Company Setup

Incorporating a Sdn Bhd can be complex if you are unfamiliar with Malaysian regulations. Eternity Global Consultancy simplifies the process by offering end to end services:

• Professional guidance for company setup and strategic planning.
• Preparation and submission of all required incorporation documents to SSM.
• Appointment of a licensed Company Secretariat to ensure ongoing compliance.
• Support with tax registration, business licenses, and other post incorporation obligations.
• Ongoing advisory for corporate governance, HR, payroll, and recruitment solutions.

With our expertise, you can focus on growing your business while we manage the legal and administrative requirements efficiently.

Advantages of Incorporating a Sdn Bhd in Malaysia

• Enhances credibility with banks, investors, and clients.
• Protects personal assets from business liabilities.
• Easier to raise capital via share issuance.
• Access to tax incentives and corporate benefits in Malaysia.
• Professional image and compliance with statutory requirements.

Internal Resources

For related topics, check out our internal links:

• Corporate Taxation in Malaysia
• HR and Payroll Solutions
• Recruitment Services

Conclusion

Incorporating a Sdn Bhd in Malaysia is a strategic step for business growth, credibility, and asset protection. With professional support from Eternity Global Consultancy, the process becomes seamless and compliant. Our team provides expert guidance on company setup, appointing a Company Secretariat, and meeting all statutory obligations. Start your Sdn Bhd incorporation journey with confidence today.