Our Annual Financial Audit approach is based on an understanding of our clients’ business processes, goals, and strategies. This enables us to identify and assess the risks that impact their business and achievement of goals

We understand how important it is for you to maintain business as usual during the audit process, with minimal disruption to your day-to-day operations. We will also work with you to identify weaknesses and assist with suggested rectification procedures.

Statutory audit not only requires the review of financial information and application of regulation, but there also needs to be support; support for the accountants completing the compliance, the trustee and the members. Our team of specialists can be relied on to not only identify issues but to also provide assistance and guidance according to the International Auditing Standards and compliance with the requirements of Malaysian Institute of Accountants.

As Malaysia is transitioning to adopt the Financial Reporting Standards, our professional auditors are prepared to guide your finance department on the complexity of changes and keep you updated on current and upcoming amendments so that your financial statements remain relevant and fully compliant at all times.

Advantages of Auditing

A true and fair financial statement may be able to satisfy the following:

• Satisfy stakeholders such as employees, customers, suppliers and pressure group, as well as the investing community, as to the credibility of published information
• Facilitate the payment of corporate tax, goods and services tax, and other taxes on time and accurately, thereby avoiding interest, penalties and investigations
• Enable company to comply with banking covenants
• Help to deter and detect material fraud and error.
• Facilitate the purchase and sale of businesses
• Take advantage of the spin-off benefits such as advice on the structure and operations of systems
• Demonstrate good corporate governance and citizenship

Every company operating in Malaysia must file tax returns every year. This is for resident companies i.e. those that have their management and control based in Malaysia, and non-resident companies i.e. companies that have more than 50% in foreign shareholding. The Inland Revenue Board is the tax agency to which these returns are made.

Corporate Tax

• Effective rates

For Small and Medium Enterprises the rate is 19% for the first RM 500,000 and 24% for any amount beyond that was effective 2016. SMEs in Malaysia are defined as companies with a paid-up capital of less than RM 2.5 million. This company should not be part of a company group that has a company with a paid up capital of this amount.

The standard tax rate is 24% for other companies.

• Labuan companies or representative offices are allowed to choose a minimum tax rate of 3% on any amount of profits or pay a flat rate of RM 20,000 per financial year. All income derived from doing business in Malaysia is taxed. Income from foreign sources is not taxed unless the company is in banking, insurance, shipping and air transport.
• Taxable income is calculated as all income that is accrued from doing business in Malaysia which includes gains and profits, rents, interests, dividends, premiums, royalties and any other income. Companies are required to adopt the Single-Tier System (STS) and companies that do so are exempt from tax on dividends.
• Capital gains are tax exempt except when the gains are realized through the sale of real property, or when a shareholder sells shares in a real property company at a profit. The tax rate is 30% for selling in less than 3 years after the acquisition, 20% in the 4th year, 15% in the 5th year and 5% in the 6th year and beyond.
• Losses are permitted to be carried forward indefinitely and offset with income from the same company.
• Foreign tax credit

If the company has paid a foreign tax, the same tax may be credited against the Malaysian tax on the same profit. Note that,this is limited to 50% if the tax jurisdiction has a tax treaty with Malaysia. This tax credit is only applicable to foreign income. Domestic dividends are also tax exempt.

• Tax for holding companies

An investment Holding Company is defined as one that is involved in holding investments and derives a minimum of 80% of its gross income from such investments. Such a company is only permitted expenses that are tax deductible.

• Tax incentives

Industries that enjoy tax incentives include IT, Islamic Finance, biotechnology, environmental protection and energy conservation. Pioneer status investments enjoy up to 10 years’ tax holiday. This can be 60-100% investment tax allowance, accelerated capital allowance, and reinvestment allowance up to 60% of invested capital.

• Withholding tax

There is no withholding tax on dividends. Interest paid to a non-resident is subject to 15% withholding tax unless there is a tax treaty. However, interest paid by a Malaysian bank to a non-resident is exempt unless that interest forms part of income accruing at the non-resident’s place of business in Malaysia, or is part of networking funds.

Royalties to a non-resident are subject to 10% withholding tax unless there is a tax treaty with the non-resident’s tax jurisdiction.

Technical services payments to non-residents for work done in Malaysia are subject to 10% withholding tax.  This rate also applies to payments of rental of movable property or installation fees paid to non-residents unless there is a tax treaty in place.

f you are a foreigner looking to do business in Malaysia, you have the choice of picking the sole proprietor model of business, partnership or a private limited company.  Among the three models of business ownership, the private company (Sendirian Berhad Company, Sdn Bhd) is the preferred choice as it has numerous advantages in legal matters as well as in raising financial capital.

he private limited company by shareholding is known as “Sendirian Berhad” (Sdn Bhd) Company. This type of company is a separate legal entity from its owners. This means that the company is considered a legal ‘person’ that can buy or sell property, enter into legal contracts, sue and get sued in courts of law.

There are several advantages and disadvantages of the Sendirian Berhad company. However, the advantages far outweigh the disadvantages. They include:

• Personal Wealth Protection

The Sdn bhd company is a limited liability entity. This means that the liability of the owners end at being shareholders. They are not responsible for the company’s debts. This means that the investor’s wealth as a shareholder is protected.  His assets cannot be attached to pay for the Sdn Bhd company’s debts unless he has provided a personal guarantee for the debt. This is unlike the sole proprietorship or partnership models where the owners are responsible for the debts of the company.

• Continuous Existence

As a legal entity able to buy and sell property, the sdn bhd is able to operate continuously expanding its assets and business portfolio even as the owners come and go. Private companies stand in existence until such a time when they are dissolved by a court of law. This means that an investor can achieve a long term business vision through a company safe in the knowledge that his goals will be achieved by those who come after him. This is unlike a sole proprietorship or partnership where the business dissolves upon the departure of one of the owners.

• Transferable Ownership

Ownership in a private company is held among several shareholders. These shareholders can transfer shares among one another, or sell to outsiders who then become owners of the business too. The investor is able to transfer his ownership to relatives, friends or other entities without changing the ownership structure of the company. This is very flexible for the business as the operations are not affected by changes in ownership. This is unlike a sole proprietorship or partnership where the ownership transfer is complex.

• Better Access to Capital

Need for capital arises now and then when a business wants to expand? A Sdn Bhd company will find it easier to raise capital by issuing more shares, or bonds which buyers hold as guarantee against debt.  A private company can access more capital through the stock exchange by issuing an IPO, which makes its access money by selling shares to the general public.  These options are unavailable to sole proprietorships or partnerships in which owners have to personally raise funds at a risk to their assets.

• Lower Taxes

Malaysian tax laws are more favorable to the Sdn Bhd company than any other model of business or taxpayer entity. The corporate tax for the first MYR 500,000 profit is taxed at 20%, and 25% beyond this amount. The maximum tax rate is 26%. This is unlike tax rates applying to individual tax payers which can rise up to 30% and beyond.

• Other Factor to Consider

However, there are some requirements / disadvantages of a Sdn Bhd company that foreign investors must be aware of when looking to invest in Malaysia.

-Local partnership

Forming a company in Malaysia using Sdn Bhd company structure requires you to have at least two directors living in Malaysia. This means the foreign investor will have to identify suitable partners in his ventures. This bears an element of risk as control of the business is whittled down.

-Legal compliance

Even when the sdn bhd company becomes dormant, it will be forced to file tax returns, do annual returns and be open for audit.

-Annual expenditures

The sdn bhd company has to engage a tax auditor and a company secretary every year to remain compliant with corporate requirements in corporate tax and governance regulations. These are professionals whose services do not come cheap.  A dormant sdn bhd will spend MYR 4,000-5,000 for just staying legally compliant.

-Strict bookkeeping

Sdn bhd companies operate under a more watchful eye from the government. There are many corporate regulations and laws to observe, and failure to do so will result in a risk of heavy fines.

The structure of Sdn Bhd company still offers the best flexibility and protection for anyone intending to do foreign investment in Malaysia. Registering one is not difficult as Malaysia has eased the incorporation procedures.

In 2018, the World Bank ranked Malaysia one of the easiest place in the world to start a business. This is a testament to how easy it is to start a business in Malaysia, especially with the right guidance from company formation experts in Bayabumi Accountancy Services.  

All companies in Malaysia must be registered with the Companies Commission of Malaysia, known locally as Suruhanjaya Syarikat Malaysia (SSM). They are the statutory body responsible for overseeing and regulating corporate and business affairs. 

Being the capital city of Malaysia, Kuala Lumpur is not only the business hub for the country, but also the place most foreigners seek out to start their Malaysian company incorporation journey.  

To open a company in Malaysia is a fairly straightforward process. This guide will provide you with all the requirements you need for your Malaysia company incorporation process.  

Malaysia Company Incorporation End Goals

Before commencing your business in Malaysia, it is important that determine your end goals. Why do you want to start your business in Malaysia? Clarifying your intention and reasons helps to put your goals into perspective. It is not just about preparing for the how to incorporate a company in Malaysia part, but why you’re choosing Malaysia as your base of business?  

When starting any business in Malaysia, chances are you might make it, or you might just fail. Not everyone that has started their business in Malaysia has succeeded. However, there are a few that actually surpassed expectation and eventually made it to the top too. 

Malaysia Company Incorporation Requirements

To register a company in Malaysia, you will need to fulfil the following requirements: 

• Prepare the minimum paid-up capital of RM 1. 
• Have a minimum of one director who is at least 18-years old with no prior criminal convictions and bankruptcy records. The director should also be residing in Malaysia.  
• Have a minimum of one subscriber to the shares of the company. 
• Have a minimum of one Company Secretary. They must be a member of any of the prescribed professional bodies or licensed by the SSM. Alternatively, Bayabumi Accountancy Services can assist through our Company Secretarial Services package. 
• Have a registered office address in Malaysia. 

You will also need to provide the following information: 

• Prepare your proposed company name and its meaning. 
• State the primary business activities of the company. 
• A copy of the NRIC or passport of all directors and shareholders. 
• Recent proof of residential address of all directors (utility bills, phone bills, etc). 
• Contact details and occupation of all directors and shareholders. 
• Details of the beneficial owner (if they are not listed as the shareholder). 
• Information about your paid-up capital. 
• Registered business address. 
• Source of funding. 
• Expected location of customers and suppliers. 
• Written confirmation from directors, shareholders and beneficial owners that they are not a Politically Exposed Person. Email confirmation is acceptable. 

Types of business structures and company incorporation in Malaysia

• Sole-Proprietor: is a traditional and a commonly used business structure around the word. Sole Proprietor is also known as a Sole Trader. For some businesses, this structure is suitable because it is the easiest and the cheapest form of business structure out there.

• Partnership: is the second most common structure of business out there. Basically what happens in a partnership is that the business is owned by two or more separate entities.

• SDN BHD: stands for Sendirian Berhad. SDN BHD is a private limited company which cannot make its shares available to the general public. To Incorporate or register a SDN BHD (Private Limited or LLC) company in Malaysia must have a minimum of 2 directors. As the shareholder / director of a SDN BHD, you don’t need to put your personal wealth and assets at risk.

Why is choosing the right business structure for your business important?

Choosing the right business structure is crucial decision for a business. If the right business structure is chosen it boosts a business towards success. The correct business structure will help businesses to reach their full potential. If a business fails in choosing the right structure it will face several severe difficulties while operating in the long run.

Setting up a company in Malaysia by using the SDN BHD (Sendirian Berhad) structure is the best choice for an Entrepreneur. This structure should be opted for by an entrepreneur who is committed and ambitious about his or her business. There are major benefits of using this structure which no other structure offers.

1. The liability is limited. An entrepreneur’s personal wealth is protected if the business encounters a loss or if the business fails.
2. Another major advantage of this structure is that the income tax risk exposure is low. Most SDN BHD are better managed and regulated. The tax planning is better as the company is a separate legal entity. Tax saving up to 20% compared to individual tax rate.
3. The Business Continuity will never stop. A company using SDN BHD structure will never expire and the company will exist even if the key owner passes away.
4. Getting a loan is easier for this structure. It all depends on company’s cash flow, strategy and business prospects. Accounts of SDN BHD Company are more reliable and trustworthy.

Incorporation company in Malaysia require you to engage the service of company secretary, to help you to complete the company registration process.

Every company (sdn bhd) must have at least one company secretary in the Board and the company secretary must be a member of a professional body or licensed by SSM Malaysia.

Contact Bayabumi Accountancy Services today for all your incorporation needs.

Malaysia as a new highlight in the economics of the ASEAN is a prospective place to set up a company. A lot of business owners around the world compete to set their camp on it as a company. The interesting question popping up is “how to incorporate business in Malaysia?” This question should be answered in advance so no unnecessary, time-wasting questions appear in the future where mistakes mean loss of money.

Requirements to Incorporate Business in Malaysia

Prior to discussion about how to incorporate business in Malaysia, we should know the definition of company itself in Malaysia. There are two types of company eligible for company incorporation: (1) a company limited by shares, and (2) an unlimited company. The business owners can determine whether their company will be incorporated as a private company (Sdn. Bhd. / Sendirian Berhad) or public company (Bhd. / Berhad). The requirements of both companies are the same, including:

1. Two shareholders (Section 14CA)
2. Two directors (Section 122)
3. A company secretary, a member of a professional secretarial firm under the Minister of Domestic Trade Cooperative and Consumerism, or an individual licensed by SSM.

Note: Both the directors and company secretary must have their only residence in Malaysia.

Procedures

Once the business owners fulfilled the requirements, they will likely hand over the rest of the secretarial matters to the company secretary. There would be two important steps in company incorporation: (1) application of name search, and (2) lodgement of incorporation documents.

Application of Name Search

This step is conducted to determine the availability of the proposed name. The business name must initiate the step by the completion and submission of Form 13A CA to SSM and a fee of RM 30.00 per each name. After approved by SSM, the name will be reserved for three months from the date of approval. This period will be used for completing and submitting documents necessary to incorporate business in Malaysia.

Lodgement of Incorporation Documents

This step is so crucial because the failure will cause an obligation to repeat the whole process from the application of name search. So, all documents must be completed and submitted within 3 months. The documents include:

1. The Memorandum and Article of Association stamped at RM 100.00.
2. Form 48A
3. Form 6
4. An original of Form 13A
5. A copy of the approval letter from SSM
6. A copy of the identity card (usually passports) of directors and company secretary

The whole process of company incorporation is completed with the release of a Certificate of Incorporation by SSM. 

Malaysia starts stealing the world’s attention for its business potential. A decade ago, this country was mostly known as one of the most favorite tourist destinations in the ASEAN. But, today’s Malaysia is quite different. It has strengthened its pillar of economics and successfully created a conducive atmosphere for the global trend of multinational companies. So now, it is not complicated to make your company building plan come true in Malaysia. The following guideline will assist you and answer all of your questions in association with Malaysia company registering.

Malaysia Company Registration Guideline

Malaysian warmly welcomes foreigners to plunge into the economics of the country. There are two ways foreigners can take if they wish their company to legally enter Malaysia business sector. The first is incorporating a local company with Suruhanjaya Syarikat Malaysia (SSM), or registering their foreign company. The latter refers establishing a form of SDN BHD company that is fully owned by two foreign directors. In short, foreign business owners must select whether they want to go on with incorporation or registration. The legal matters associated to Malaysia company registration are under provisions of the Companies Act 1965 (CA 65). In general, there are two steps the business owners (usually represented by a company secretary in Malaysia) must take in company registration in Malaysia.

Step 1. Name Application

In the step, the business owners must check the availability of the company’s name proposed. The form involved is Form 13A. The Malaysia company registration form must be requested from SSM, completed and submitted back to SSM. The submission includes a fee of RM30.00 valid for one name. The name refers to the name registered in its homeland.

Step 2. Company Registration

This step starts after the approval of the company’s name – which means that it is available to use. The business owners must request the Malaysia company registration form from SSM, complete and compile it with other necessary legal documents for submission to SSM. The submission must be done in 3 months after the name approval.

Documents in Malaysia Company Registration

1. A copy of the registration or incorporation certificate of the company
2. A copy of the statute, charter or Memorandum of Association of the company
3. Form 79
4. A memorandum of power of the authorized attorney residing in Malaysia
5. Form 80
6. Additional legal documents including: (1) copy of Form 13A (2) a copy of the letter justifying the approval of the company’s name

Besides the name approval and submission of company registration documents, the business owners must also regard other requisite terms in the form completion. For instance, the company must have at least two directors and one company secretary. Both directors may be or not residents in Malaysia depending if they select incorporating or registering their company. But, a company secretary must be a resident in Malaysia.

What is a Private Limited Company?

A private limited company is a business entity that is, as the name implies, privately held. Private limited companies usually consist of small and medium businesses. The owner of a private limited company would limit his or her liability to their shares, and limits the number of shareholders in a company to a maximum of 50. Shareholders of a private limited company are also restricted from publicly trading shares.

A private limited company is a legal entity it its own right and the company’s finances are a separate thing altogether from the owner’s finances. A private limited company is one of the most suitable structures for both profit and non-profit making business entities. With the private limited company option, the company has an indefinite lifespan, and will be able to run as long as there is somebody to run it.

How to Set Up a Private Limited Company

To establish a private limited company, investors would need to complete the following steps:

• Select a suitable and unique name for the company
• Acquire a registered company address for the business
• Appoint at least one director
• Appoint at least one shareholder to manage the details of the company shares

Who Can Establish a Private Limited Company?

If you have the means to do it, you can establish a private limited company by yourself and own 100% of the shares, or divide the shares among other shareholders in your company if you have more shareholders.

Owners of private limited companies are known and shareholders, and each of these shareholders would hold a certain number of shares in the business. To become a shareholder of a private limited company requires the individual to purchase one or more shares which are issued by the company. Each share purchased would represent an equal percentage of the business. Basically, the more shares you hold, the bigger the percentage of the business that you own.
The people in charge of running and managing a private limited company is known as a director(s). The requirement for a private limited company ordinarily is to have at least one director, which in a lot of cases usually ends up being the owner of the company themselves.

Why Having a Private Limited Company is Beneficial?

Running a business as a private limited company would offer you the advantages below:

• A professional status, as private limited companies are usually seen as a more professional body compared to other business entities like the sole trader for example.
• Owners of a private limited company have a more tax efficient income within the legal limitations.
• When you own a private limited company, you are protected from personal liability. Personal assets will not be at risk with this company option if the business fails. The liability of the shareholders is only limited to the amount (if any) unpaid shares which are held by them.
• Doing business with other companies is also much easier when you’re a registered and incorporated private limited company because of the level of professionalism that goes with this type of business entity.

Social Security Organization (SOCSO), or also known as PERKESO (Pertubuhan Keselamatan Sosial) was established on 1 January 1971, under the Employees’ Social Security Act 1969 as a government department of the Ministry of Labour and Manpower.

SOCSO is able to provide free medical treatment, facility for physical or vocational rehabilitation, and financial assistance to employees, if they have loss their ability due to accidents or diseases that have reduced their abilities to work or rendered them incapacitated through the Act and Regulations.

SOCSO was entrusted with the administration of two social security schemes, which are the Employment Injury Scheme and the Invalidity Scheme.

For Employment Injury Scheme, it is to provide coverage and protection for employees who suffers from employment injury. The coverage includes industrial accidents while carrying out their duties; accidents while travelling; accident during emergency; occupational disease.

As for Invalidity Scheme, is to provide coverage and protection for an insured person who is considered as suffering from invalidity by reason of specific morbid condition of permanent nature either incurable or is not likely to be cure and no longer capable of earning, by work corresponding to his strength and physical ability, at least one-third (1/3) of the customary earnings of a sound insured person. This scheme also provides 24-hour coverage to employee who suffers from invalidity or death due to any cause and not related to his employment.

It is SOCSO’s Vision to become the premier and outstanding leader in social security 2020, with their Mission to provide a social security protection to employees and their dependents through social security schemes and to increase awareness on occupational safety and health that will ultimately improve the Employees’ social well-being.

Malaysia has always been a country that attracts a lot of interest from investors, whether international or local. Why investors would choose to have their company registration in Malaysia has a lot to do with the following factors:

• Company registration in Malaysia involves a low start-up costs if compared to other countries such as Singapore for example.
• A company registration in Malaysia allows that company to benefit from the country’s double taxation treaties if they are resident companies, which minimize the withholding taxes on fund transfers overseas. There are also no withholding tax levies on dividends which are made abroad by Malaysian owned businesses.
• Malaysia is ranked by the World Bank as the 6^th easiest place in the world to do business and the country has also been ranked as the 25^th most competitive economy in the world.
• A company registered in Malaysia would be eligible to be part of the free trade agreements which have been signed between Malaysia and six other ASEAN countries.

The company registration process in Malaysia involves going through the Companies Commission of Malaysia, known locally as the SSM. The SSM is the governing body that is responsible for all successful company incorporations in the country and every business must deal with them for the company registration process.

Investors who intend to use this option as their preferred company registration in Malaysia pathway would need to fulfil the following requirements:

• Have a minimum of one director who is at least 18 years of age and currently residing in Malaysia at the time of incorporation. The selected candidate must not have undergone bankruptcy, been convicted or imprisoned for the past 5 years.
• Have one company secretary who must be a member of any of the prescribed professional bodies or licensed by the SSM.
• Have a minimum paid-up capital of at least RM1.
• Have an official registered office in Malaysia where all business communication and notices may be addressed to. Investors could opt to have their secretarial office as the registered office if needed.

Everyone is looking to the highest quality with the lowest price. However, not every service or things with lowest pricing is at highest quality.

Although some firms provide low secretarial fees, but they would probably not send reminders on time to their client, which ended up the penalty clients have to pay is even more expensive. In addition, one may be debarred from acting as a director in future due to the bad record of non-compliance.

For some firms that provide secretarial services at slightly lower fees, they may be not providing you with proper security system for your secretarial files keeping. Loss of secretarial files can cause you very heavy penalties. Generally, under the new Companies Act 2016, which is expected to be gazette soon, the penalty can easily reach RM500,000 for default in each provision of the Act.

One might be paying low secretarial fees, yet end up paying higher fees in total, after all the add-on fees, penalties, etc.

Relative to other professional firms that is of equal size and set-up, you will realise that Bayabumi Services is still the one that is offering the highest quality of services at the cheapest rate in the market currently. This is the minimum rate for us to make a thin profit above our break-even cost in order for us to serve you better while maintaining our high quality of standards in the competitive, fast-paced and globalised market. 

There are many things you need to consider when starting up, but one key thing to add to your to do list a Shareholders’ Agreement. A Shareholders’ Agreement is one of the most important documents a private company should have. Such a document will set out the rules, obligations and responsibilities of the shareholders, their relationship with each other and their relationship with the company.

Even though there is no legal requirement to have a formal Shareholders’ Agreement, every company with more than one shareholder is well advised to have one. Often people think they understand each other and have common goals, but as the business changes or issues arise views can change and diversity can arise. Often when the profits start to increase one may want to invest and grow the business; others may want to reap the rewards personally or when profits are very low one may want to find an investor, a loan or another shareholder the other one may want to struggle through to retain ownership. Putting this framework in place to resolve potential issues/disputes before they happen enables shareholders to work through a process that they have all agreed to, rather than having to decide how matters will be resolved or having to ask a court to decide. As a result, it will reduce the potential for conflict between shareholders and help the company to be run smoothly and profitably.

What contents will be included in Shareholders’ Agreements?

The contents of a Shareholders’ Agreement will vary for every company. Each agreement needs to be bespoke and tailored to the needs of the parties involved.

What is Form E? Who needs to file the Form E? What if you fail to submit Form E?

Borang E is an Employer’s (annual) Return of Remuneration for every calendar year and due for submission by 31st March of the following calendar year.

According to the Income Tax Act 1967 (Akta 53): –

“Every employer shall, for each year, furnish to the Director General a return in the prescribed form…”

Unless it has granted the de-registration status from IRB, otherwise every company, enterprise or partnership is obligated to file the said return; regardless number of Employees during or end of the calendar year.

It generally outlines the payroll information of the Company for the said calendar year: –

1)   The number of employees being employed, including new and resigned;
2)   Details for employees earning more than RM34,000 p.a. and above, who are known as taxable employees and subject to Schedular Tax Deductions (STD or commonly known as “PCB” in Malay language);
3)   Total remuneration for each taxable employee, STD withhold and remitted;
4)   Total the number of new employees.

*Monthly STD withheld from Employees has to be remitted to IRB by 15th of the following month.

So, what if you fail to submit Borang E? Failure in submitting Borang E will result in the IRB taking legal action against the company’s directors. A minimum fine of RM200 will be imposed by IRB for failure to prepare and submit the Form E to IRB as well as prepare and deliver Form EA to the employees.

However, it is always easier if you engage with services provider to help you in taking care of all these matters. At 3E Accounting, all experienced professional can definitely provide you optimum support. 

Anyone who wanted to incorporate a business will need to register their company, which first step is the lodgement of company name search application to SSM Malaysia (Suruhanjaya Syarikat Malaysia). By doing so is to seek for SSM’s approval of using the desired name in your new company.

However, even you have searched on SSM Online System and checked with SSM e-Info system, whereby the search result shows no one is using your desired company’s name, there might be some other reasons why SSM officers may reject your company’s name applied.

So why would SSM officers reject the application of new company name?

Firstly, company name search application might be rejected by SSM due to proposed company’s name is similar with the existing company and may cause some confusion to the public. Apart from that, reason why SSM officer rejects the company name search application is probably due to the proposed company’s name is similar with the former name of existing company and may create undesirable confusion to the Public members.

Another reason why SSM officers will reject your company name search application is because the proposed company’s name is prohibited by the Companies Act 1965 or any other relevant Acts. Last but not least, the proposed company’s name is undesired for the use as company name.

Below are some actual company name search applications rejected by SSM:

• Company name suggested:

3R LOGISTICS (WEST MALAYSIA) SDN. BHD.

Rejected because somewhat alike with another registered company name:

3R LOGISTIC SDN. BHD. 584288 X 

• Company name suggested:

KONSORTIUM LOGISTIC LUBRICANT BERSATU SDN. BHD.Rejected because company name suggested too general and need to have language adjustment. Need to add wording for company name, for example, KONSORTIUM LOGISTIK INDAH SDN. BHD.

• Company name suggested:

ESA REALTY SDN. BHD.Rejected because ESA is listed as controlled list and prohibited name.

It is always better to engage with experienced professional services provider in the company name search application for you to have a hassle-free process when you register a company. At 3E Accounting, we understand how crucial your time is when setting up a business. Hence, we are ready to support you from the start of your business. Please feel free to contact us for more information.