How Much to Start a New Company Sdn Bhd in Malaysia
If you are planning to register a new Sdn Bhd, the first question you will naturally ask is how much does it cost to start a company in Malaysia. The cost varies depending on whether you handle the registration yourself or appoint a licensed company secretary. In this guide, you will find a simple breakdown of all essential fees, optional expenses and what you should prepare before starting your business.
Understanding the Basic Cost of Registering a Sdn Bhd
In Malaysia, the registration of a private limited company is governed by the Companies Commission of Malaysia also known as SSM. The process can be completed fully online via the SSM MyCoID Portal. You may choose to register the company with your own name or a new name, both carrying different fees.
Government Fees Required by SSM
These are fixed fees charged by SSM and apply to all new companies regardless of industry or size.
1. Company Name Application Fee
The cost depends on your approach:
- New Name Reservation: RM50 per name
- Using Your Personal Name: Free registration fee as long as the name matches your IC
You can check name availability through the official SSM portal: SSM e Info.
2. Incorporation Fee Charged by SSM
Once your name is approved, the next step is to submit your incorporation documents online. The SSM fee for this submission is:
RM1,000 flat fee
This fee applies to all Sdn Bhd companies. It covers your certificate of incorporation and access to your company profile once approved.
Professional Fees for Company Secretarial Services
Under the Companies Act 2016, every company must appoint a licensed company secretary within thirty days of incorporation. Most people appoint a company secretary before incorporation to ensure documents are properly prepared.
Typical secretarial charges include:
- Registration Service Fees: RM500 to RM1,200 depending on the firm
- Monthly Retainer Fee: RM60 to RM150 per month
- Annual Compliance Filing: RM300 to RM800 yearly
You may read more about secretarial requirements from SSM at: Companies Act 2016 Overview
Optional Costs You Should Consider
While these items are not compulsory for incorporation, they are often necessary for operations. The actual amount depends on your business activities.
1. Business Bank Account Opening
Most banks in Malaysia require:
- Minimum deposit between RM1,000 and RM3,000
- Resolution signed by directors
- Company profile and incorporation documents
More details are available from banks such as Maybank Business Banking.
2. Website Development and Domain
Many new companies set aside a small budget for a basic website.
- Domain name: RM50 to RM80 yearly
- Hosting: RM200 to RM500 yearly
- Website development: RM500 to RM2,000 for a simple site
3. Branding and Marketing Materials
- Logo design typically costs RM150 to RM800
- Business cards: RM30 to RM60 per box
- Social media setup: RM200 to RM600 depending on agency
Total Estimated Cost to Start a Sdn Bhd in Malaysia
To give you a clearer picture, here is an average realistic budget for a standard Sdn Bhd registration:
- SSM name search: RM50
- SSM incorporation fee: RM1000
- Secretarial registration fee: RM600 average
- First month retainer fee: RM100
- Miscellaneous document charges: RM50
Total Estimated Basic Cost: RM1700 to RM2000
If you include operational items such as a business bank account, website or branding, the budget may increase to between RM3000 and RM5000 depending on your preferences.
How Long Does It Take to Start a Company
The timeline is relatively short:
- Name approval: within one day
- Document preparation: one to two days
- Company incorporation approval: one day
Many companies can be fully set up within three business days. This is possible due to the streamlined digital system introduced by SSM through MyCoID.
What You Should Prepare Before Registering
New company owners should prepare the following information to speed up the process:
- Proposed company name
- Business description that is clear and easily understood
- Director details including IC and residential address
- Shareholding percentage for each owner
- Registered office address
If you appoint a professional company secretary, they will guide you through these steps and assist in preparing your constitution if needed.
Tips to Reduce Startup Cost
Here are some simple ways to keep your initial cost manageable:
- Use your personal name for free registration if suitable
- Start with a small authorised capital and increase later
- Choose a digital company secretary to reduce monthly fees
- Avoid unnecessary paid add ons during the first few months
Most startups only need a basic Sdn Bhd structure and can upgrade later once the business grows.
When Should You Not Incorporate Yet
You may want to delay incorporation if:
- Your business idea is still being tested
- You have no partners yet
- You are not ready for bank account requirements
- Your revenue model is unclear
However, once you start collecting payments from customers, it is advisable to incorporate to maintain credibility and compliance.
Conclusion
Starting a Sdn Bhd in Malaysia is affordable and efficient. Most new companies spend between RM1700 and RM2000 for essential incorporation costs. With digital registration and online secretarial services, entrepreneurs can expect a smooth and fast setup experience. Always ensure that you comply with SSM requirements and choose a reliable company secretary who can support your business growth.
Looking to Grow Your Business or set up a new company?
At Eternity Global Consultancy, we specialize in connecting businesses with exceptional talent across Malaysia and beyond. Whether you are an SME expanding your team or a growing enterprise seeking strategic hires, we help you find the right people for every role.
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