4 Misconception | Company Registration in Malaysia

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4 Misconception Company Registration in Malaysia
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Malaysia is one of the leading economic countries
in South-East Asia. The continuous economic
development made Malaysia rank higher on World
Bank ease of doing business rank. The strength of
the Malaysia market includes stable political
condition, a strong economy, well developed
financial sector, and excellent infrastructure.
These are the reasons, why most of the foreign
company and entrepreneurs want to establish or
move their business in Malaysia.
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Every country has its own rules, regulation, and
policies of company registration. If you think
the business registration procedure is almost the
same in every country, then you are thinking it
wrong.  In Malaysia for doing a business
registration, you need to go through various
documented procedures. The documented procedures
vary depending on the type of business you want
to operate in Malaysia. However, this article is
going to describe some misconception
about company incorporation in Malaysia.
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• Opening a Corporate Bank Account is Not a Problem
• Opening a corporate bank account is essential for
  every business for the financial transaction. If
  you are Malaysian local than opening a bank
  account might not be a problem, but it can be
  problematic if you are a foreigner. Even after
  completing all the process of company
  registration the bank may still refuse to open an
  account.  To open a corporate bank account
• All the director of the company must be
  physically present at the bank.

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• Documents such as the directors passport copy,
  company incorporation papers, board meeting
  resolution copy, and tenancy agreement papers are
  required.
• The directors of the company must hold work
  permit approval.
• Must deposit minimum capital of RM 500000 if you
  are a foreign investor.
• As a foreigner, you cannot open a corporate bank
  account in any local banks. Each international
  bank has its condition and policies which are
  sturdy enough for small size business
  organization.

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• Appoint of Malaysian Company Secretary Is Not
  Mandatory
• Many people have misconceptions of appointing a
  company secretary. Most of the people think
  appointing a Malaysian company secretary is not
  mandatory. But according to the law of the
  Company Commission of Malaysia, every corporate
  business must appoint a company secretary.
• You must appoint a company secretary within 40
  days of business incorporation.

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• The company secretary must be licensed by the
  company commission of Malaysia (SSM).
• Must be at least 18 years old
• The secretary must not have any criminal record.
• A company secretary is an essential member of a
  company. He/she is responsible for handling all
  paperworks, legal documents and procedural
  matters that are required to run the company
  legally.

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Registering Your Business by Your Own Many
business entrepreneurs want to register their
business on their own instead of paying an extra
amount to any consulting firm. However,
registering your business on your own is a good
idea, but it can be problematic if you dont know
the actual procedure. Most of the entrepreneurs
start registering on their own and failed
miserably. As a result, they waste their valuable
money and time. Therefore, it is recommended to
take advice and help from an expert or company
registration consultant to ease the process of
company registration.
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• I Can Use Any Name for My Business Registration
• Yes, you can register your business name
  according to your choice, but there are some
  rules and condition. You cannot choose any name
  that is already registered within the company
  commission of Malaysia. To register your business
  name, you must submit at least three names of
  your choice through an application. The company
  commission of Malaysia (SSM) will verify your
  names before they approved the name for company
  registration.
• The company secretary is responsible for company
  name search and booking of the name.
• The company secretary is also responsible for
  preparing incorporation documents including the
  approval of name registration.