Public Limited Company Registration in Malaysia

Berhad (Bhd) - Public Limited Company Registration in Malaysia

Malaysia accompanies many business criteria to carry out the trade and commerce in the nation. One such criterion is the Public Limited Company Malaysia. The Berhad or BHD is the suffix that denotes this type of company. Private Limited in Malaysia has the suffix SDN BHD, and the public limited company in Malaysia only uses BHD.

The public Limited company Malaysia is suited for big companies and is addressed to foreign investors who are interested in opening a business in this country and selling their company shares to the general public. Therefore, it is suitable for people who are interested in the joint stock company.

Features of BHD, a Public Limited Company in Malaysia

The key features of the Public Limited Company Malaysia (Bhd) are as follows

• A Public Limited Company Malaysia can also issue shares just like a Private Limited Company (SDN BHD), but a Public Limited Company Malaysia has a limited number of shares that they can issue
• The financial statement of SDN BHD is much more liberal, but the financial statement of the BHD company is bound to be disclosed before the public.
• The Berhad company is for all big businesses, unlike private limited companies, which are mostly for small or mid-sized enterprises.
• In BHD companies, there is a need to have a minimum number of shareholders, and the number can also go up to unlimited.
• The incorporation process of a public limited company in Malaysia is the same as that of a private limited company.
• Another feature of the BHD is that the company has great access to finance, which contrasts the SDN BHD in Malaysia.

Requirements for opening Public Limited Company Malaysia (Bhd)

When you want to set up a business in Malaysia and are interested in public limited liability, you need to know the requirements to set up this structure. The requirements for opening a Public Limited company in Malaysia are mentioned below

• The Public Limited Company Malaysia trading name should include the word “Berhad” Also, name verification is important for the company's formation in Malaysia.
• In Malaysia, you should have a registered business address.
• A public limited company Malaysia (Bhd) needs at least seven shareholders to form the business in Malaysia. The company can have 50 shareholders or more.
• The Article of Incorporation should detail the activities of the Public LLC in Malaysia, including general business rules, cases in which the structure can be closed, voting rights, and more.
• At least one Company Secretary must be licensed by the SSM or the Companies Commission in Malaysia.
• It is important to open a bank account in Malaysia that is allocated to a particular company.
• The minimum share capital is RM 2 million for a public limited liability company in Malaysia.
• You will have to apply for a special business license and permits that are according to the activities you want to carry out in Malaysia.

Documents needed for Public Limited Company Malaysia (Bhd)

The documents that are needed for the incorporation of the Public Limited Company Malaysia (Bhd) are mentioned below

• Memorandum and Article of Association, which is a legal document specified for the company's objectives, as well as internal rules and regulations.
• Notice of the situation of the Registered office and Office hours form 6.
• Statutory declaration by the director or promoter before appointment form 48A
• Identification Documents for the directors, shareholders, and the company secretary.
• Details of the share allotment state the number of shares each shareholder holds.

Steps for registration of Public Limited Company Malaysia (Bhd)

The process of Incorporating a Berhad company in Malaysia involves several steps. The following steps are mentioned below

Company Name

The first step for a public limited company in Malaysia is to choose a different name for your business and then give it to the Companies Commission of Malaysia (SSM) for approval. The company's name should follow the SSM's rules and should not be similar to or infringe upon corporate names already in use.

Prepare Documents

Important incorporation documentation should be prepared while the company's name is authorized for incorporation into a Berhad company in Malaysia. The Memorandum of Association, Article of Association, Form 13A, Form 6, and Form 48A should be filled.

Appointment of Director & Company Secretary

You will need to appoint at least one director and a company secretary who lives in Malaysia. Before a company secretary can join, the Ministry of Domestic Trade and Consumer Affairs should recognize the professional organization.

Regulate Share Capital

Determine the share capital and the quantity and cost of the new shares to incorporate a Berhad company in Malaysia. In most industries, foreign ownership is not limited, and at least one shareholder is needed to Incorporate a Berhad company in Malaysia.

Document Submission

The documents of complete incorporation have to be submitted to the SSM for registration along with all needed paperwork and costs. The paperwork will be submitted by hand at the SSM counter or electronically through the MyCoID site.

The incorporation Certificate

The SSM will issue the Certificate of Incorporation after the registration is accepted, suggesting that the business will be incorporated in Malaysia.

Bank Account

After receiving the Certificate of incorporation, the company will be able to open a Bank account. Other registrations are also needed, depending on the business activity, such as for tax and employee-related issues.

Eligibility Criteria for Incorporation in Malaysia

After you apply to incorporate a Berhad company in Malaysia, every applicant should determine the eligibility requirements which are mentioned in the Malaysian Corporate Legislation for the business registration process

Shareholders

The minimum number of shareholders needed for the company registration in Malaysia is one. The shareholder can be of any of the following entities: foreigner, private entity, or local individual.

Directors

A minimum of one director is needed for incorporation in Malaysia. Each director should be free of legal proceedings, which may include insolvency or bankruptcy. Every director should carry out his or her duties per the Companies Act of 2016 rules.

Company Secretary

There should be a company secretary in every registered company in Malaysia. The Company secretary should be a citizen or a permanent citizen of Malaysia. His residence should be in Malaysia.

The object of the corporation

For business registration, each applicant must prepare the appropriate object under the 2016 Companies Act. The specific information on objects must be included in the Memorandum of Association, and the applicant company's legal actions should be specified in the object. The Malay Authority has forbidden every registered entity from engaging in illegal activity.

Governing Body for Company Incorporation in Malaysia

The governing body for Incorporating a Berhad company in Malaysia is Suruhanjaya Syarikat Malaysia or the SSM. SSM was established by the Companies Commission of Malaysia Act 2001 as the statutory authority. This is in charge of regulating and supervising corporations and businesses in Malaysia.

The Malaysian Businesses Commission (SSM) is in charge of company registration, administration, and regulation, which includes forming new businesses, registering business names, and maintaining company records. It will guarantee the Companies Act of 2016 and the other relevant legislation followed.

The SSM provides online services and materials to help with the incorporation process and other business-related transactions. The online site MYCoID is where individuals can register their new companies. You submit the paperwork and get the company information and services.

List of Prominent Public Limited Company Malaysia

Malaysia is a place where there are several public limited company Berhad (BHD). These companies are prominent on national and international platforms. Therefore, the list of the high-ranked Berhad companies in Malaysia is mentioned below

• RHB Bank Bhd
• AmBank Group Bhd
• Maybank Bhd
• Public Bank Bhd
• Petronas Chemical Group Bhd
• Axiata Group Bhd
• Hong Leong Financial Group Bhd
• Sime Darby Bhd
• Tenaga Nasional Bhd
• Sime Darby Plantation Bhd
• Maxis Bhd
• Maybank Bhd

Malaysia is also home to some other public limited companies that regularly contribute to the national economy. Also, you have to understand that when it comes to economic growth, all types of companies have equivalent and significant contributions.

Types of Companies in Malaysia

In Malaysia, several types of companies are allowed to start businesses. Among them, the four most popular types of company formation in Malaysia are mentioned below

• Public Limited Company Malaysia (Berhad)
• Private Limited Company (Sdn Bhd)
• Sole Proprietorship
• Partnership

Laws For the Incorporation of Company in Malaysia

For governing the incorporation of companies in Malaysia, the primary statute for governing the legislation is the Companies ACT 2016. In this Act, the laws and rules governing the formation, operation, and management of businesses in Malaysia are mentioned. Some important clauses and rules for the company incorporation in Malaysia are as follows

Rules and Steps

In the Corporation Act 2016, the rules and steps for the creation and incorporation of corporations in Malaysia are mentioned. It explains many business entities, also including international businesses, private Limited Companies (Sdn Bhd), and public limited companies.

Share Capital

This act lays out the rules that govern the company's authorized share capital and the distribution of shares to shareholders. It also includes the rules that govern share transfers, shareholdings, and other share classes.

Memorandum & Article of Association

This act governs the Memorandum and Article of Association in both content and format, which includes the legal papers that outline the corporation's goals, internal policies, and regulations.

Company’s Name

This act provides specific requirements and limitations for choosing a company name, including the name's originality, the evasion of critical phrases, and obedience to SSM’s name approval standards.

Company Secretary

The company secretary should be a member of a professional organization that recognizes the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) as the authority to appoint the company under the terms of law. The specialized duties of Company secretaries embrace enabling corporate governance, preserving statutory documents, and ensuring obedience to laws.

Compliance & Reporting

The compliance and reporting needs of the businesses in Malaysia are drawn in the Companies Act of 2016. The responsibilities will be holding Annual General meetings, also to prepare financial statements, conducting audits, and submitting yearly returns to the Malaysian Companies Commission (SSM).

Advantages of incorporating a Company in Malaysia

There are several benefits of incorporation in Malaysia that will make Malaysia a preferred destination for the incorporation of the Company. The benefits are as follows

Limited Liability

One of the main benefits of forming a corporation is liability protection. To lower risk, the individual investor's assets are often safeguarded from the company's debts.

Contact a Growing Market

Malaysia is centrally located in Southeast Asia, which provides easy access to the fast-increasing provincial market. It is near nations like Singapore, Thailand, and Indonesia, which makes it the regional hub for corporate expansion.

Political Stability

Malaysia's political Environment is stable, making it an appealing destination for foreign businesses. To encourage foreign direct investment, the government has implemented laws and made business conducting easier.

Tax benefits

Malaysia offers various tax breaks and privileges to attract international investors and support economic growth. These inducements include lower tax rates, tax exemptions, and tax credits for particular businesses and activities.

Strong Infrastructure

Malaysia's well-developed infrastructure includes transportation networks, ports, and communication systems. This type of infrastructure facilitates corporate operations and commerce.

Skilled Workforce

In Malaysia, there is a highly educated and talented workforce who speak English, which is mostly used in commercial communication. This enables the organization to hire staff and communicate with international partners.

Modest Costs

Malaysia's operational costs are cheaper than in many Western countries, including labour costs and more economical office space.

What Services Enterslice can provide?

We at Enterslice provide inclusive support for the registration of Berhad (BHD), a public limited company in Malaysia, which will ensure that you get a simple and legally compliant process. Our expert team will navigate the difficulties of Malaysian corporate law to facilitate swift registration, which enables businesses to establish a strong foundation for growth and expansion. With Enterslice-tailored solutions, you will get access to professional guidance, thorough documentation, and efficient filing processes, empowering you to confidently embark on your entrepreneurial journey. Trust Enterslice for your Berhad (Bhd) registration needs in Malaysia and unlock the full potential of your business ventures.