【Malaysia Company Registration Tips】Must-Read for Registering a Malaysian Company! Avoid These Pitfalls and Get It Done Easily
Registering a company in Malaysia is not a complicated process, but many people, due to a lack of understanding of the regulations, easily fall into traps, even leading to disruptions in company operations. Here are some common misconceptions; see if you've fallen victim to any?
Misconception 1: Everything is fine after company registration
Many people think that after company registration, there is no need for further management. In reality, companies need to submit statutory documents every year, such as financial statements, tax returns, annual returns, etc. Failure to submit on time may result in fines or even forced deregistration.
Misconception 2 : The company address can be filled in arbitrarily
During registration, you need to provide a legal registered company address. Some companies arbitrarily fill in the address, even using residential addresses, which may affect bank account opening and subsequent compliance. It is recommended to use a compliant business address or obtain a registered address through a company secretary.
Misconception 3 : The roles of shareholder and director are not different
Many people think that shareholders and directors are the same concept. In reality, shareholders are the owners of the company, while directors are responsible for the company's daily operations and decision-making. Directors bear greater obligations regarding the company's compliance and legal responsibilities, so it is essential to clarify the roles of both.
Misconception 4 : There is no need to hire a company secretary
In Malaysia, private limited companies ( Sdn. Bhd. ) must appoint a licensed company secretary responsible for the submission of company documents and compliance management. Without a qualified secretary, the company may be unable to complete statutory reporting and may even be fined or deregistered.
Misconception 5 : The company name can be chosen arbitrarily
When registering a company, the company name must be reviewed by **SSM (Companies Commission of Malaysia)** and cannot be the same as an existing company. Some special words, such as " Bank ”、 " Insurance ” etc., require additional approval. It is recommended to check the availability of the company name in advance to avoid unnecessary delays.
Misconception 6 : If the company does not want to operate, it can be closed at any time
If the company decides to cease operations, it does not mean that it can be left alone. It is necessary to apply according to the regulations for ** company deregistration ( Strike Off ) ** or liquidation; otherwise, the company will continue to accumulate fines, and the directors may also be blacklisted, affecting future business development.
Company registration is only the first step in starting a business; subsequent compliant operations are equally important. If you are considering registering a company in Malaysia, setting up a new factory, etc., FOZL is your best choice. We have extensive experience and a professional team dedicated to providing customized solutions for our clients. Welcome to contact the FOZL Malaysia team; we will be happy to serve you.
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