Cost to Incorporate a Company in Malaysia
Are you considering starting a firm in Malaysia?
If so, then the most prominent step you would be required to do is to incorporate your company. Incorporating a company in Malaysia can be a compelling and rewarding experience, but it’s crucial to understand the costs involved in the process.
While it may seem daunting to consider the various fees and expenses associated with incorporation, it’s important to approach the topic with a clear understanding of the benefits that can come with establishing a separate legal entity for your business.
Some of the costs you can expect to incur when incorporating a company in Malaysia include registration fees, name search fees, stamp duty fees, and professional fees for legal and accounting services. Additionally, as per the functioning of your corporation, you will be required to acquire company licenses and permits, which can add to the overall cost.
In this article, we will explore the cost to incorporate a company in Malaysia, with a focus on the various fees and expenses that are typically required. By understanding the Malaysia company formation cost, you can make informed decisions about the type of legal entity that best suits your business needs and budget.
Primary Cost to Incorporate a Company in Malaysia
By understanding the cost to incorporate a business, you can take steps to ensure that your business is set up for long-term success while managing your expenses effectively.
Incorporating a company in Malaysia involves several costs that should be considered by anyone interested in starting a business in the country.
Here are some of the main cost to incorporate a company in Malaysia:
Company registration fee
The fee for registering a firm in Malaysia relies on the firm’s approved share fund. For instance, if the permitted stake fund is less than RM400,000, the registration fee is RM1,000. If it is between RM400,000 and RM500,000, the fee is RM3,000, and so on.
Name search fee
Before registering a company, a name search must be conducted to ensure that the proposed company name is not already in use. The fee for conducting a name search is RM30 per name.
Firm secretary fee
Every company in Malaysia should hire a firm secretary within the span of 30 days of registration. The company secretary’s fees vary depending on the company’s size and complexity, but it typically ranges from RM500 to RM2,000 per year.
Stamp duty
Stamp duty must be paid on the company’s Memorandum and Articles of Association. The stamp duty fee is based on the authorized share capital and is capped at RM2,500.
Business License
As per the functioning of the company, a business authorization may be required. The cost of obtaining a business license varies depending on the type of license and the location of the business.
Professional fees
Depending on the complexity of the company’s structure, professional fees may be required for legal and accounting services.
In summary, the cost to incorporate a company in Malaysia varies depending on the size and complexity of the business. However, the fees mentioned above are associated with Malaysia company formation cost.
Cost to Incorporate a Business as per Legal Entity
The cost to incorporate a business varies depending on the legal entity chosen.
Here are the costs associated with each type of legal entity:
Sole Proprietorship
A sole proprietorship is Malaysia’s simplest and most common form of business entity. The fee to register as a sole owner is relatively low, typically around RM60. However, there may be additional costs for licenses and permits as per the functioning of the business.
Partnership
A partnership is created when more than 1 people come jointly to run an industry. Registering a partnership is typically around RM60, plus an additional RM5 for each partner. Similar to a sole proprietorship, there may be additional costs for licenses and permits depending on the nature of the business.
Private Limited Company (Sdn Bhd)
A PLC is a separate legal entity from its owners and is one of the prominent types of company structure for medium to large-sized businesses. The fee to register a PLC in Malaysia is based on the company’s authorized share capital.
For instance, if the approved stake fund is less than RM400,000, the registration fee is RM1,000. If it is between RM400,000 and RM500,000, the fee is RM3,000, and so on.
Public Limited Company (Bhd)
A public limited company is a larger and more complex entity that is allowed to offer its shares to the public. The cost to register a public limited company in Malaysia is similar to a private limited company, but with additional requirements and costs related to the listing of shares on the stock exchange.
In summary, Malaysia company formation cost may vary depending on the legal entity chosen, with the cost increasing as the complexity of the entity increases.
Conclusion
Incorporating a company in Malaysia provides entrepreneurs with a range of benefits such as limited liability protection, increased credibility with customers and partners, and access to financing opportunities. But when starting a business, it’s important to carefully evaluate all of the associated costs, including those for business permits, name searches, and company registration. Additionally, the fees could differ depending on the kind of business you have chosen.
If you have any queries regarding the cost to incorporate your company in Malaysia, it is best to speak with experts from OnDemand International. We would assist you in carefully evaluating the necessary costs associated with business registration and further help you register the business. Contact us today.
FAQ’s
The cheapest legal entity to incorporate in Malaysia is a sole proprietorship, which typically costs around RM60 to register.
The prominent type of company structure for medium to large-sized businesses in Malaysia is a private limited company (Sdn Bhd).
Additional costs to consider when incorporating a company in Malaysia may include business licenses and permits, company secretarial services, stamp duty, and professional fees for legal and accounting services.
Working with a trusted and experienced professional, such as a lawyer or accountant, can help you ensure that you’re properly accounting for all costs associated with incorporating a company in Malaysia.
No, a company incorporated in Malaysia must have at least one local director who is a resident of Malaysia.
