For-Profit

There are three types of for-profit companies in Malaysia, governed by the Companies Act of 2016.

1. Company limited by shares (also known as Sendirian Berhad or Sdn Bhd).
2. Company limited by guarantee.
3. Unlimited Company

In addition to ‘companies’, Malaysia has limited liability partnerships, which is a different business vehicle governed by the Limited Liability Partnerships Act 2012. Partnerships and sole proprietorships also exist, but they need not be incorporated. This link is a great source on the pros/cons of differnet company types in Malaysia.

For-profit private companies

According to the official website of Companies Commission Malaysia, the requirements for incorporating a company are as follows:

1. “Private company - at least one (1) director who ordinarily resides in Malaysia by having a principal place of residence in Malaysia and one (1) promoter; or
2. Public company - at least two directors who ordinarily reside in Malaysia by having a principal place of residence in Malaysia and minimum one promoter.” The steps to incorporation are as follows:
3. “Requirement for approval of company name from SSM.
4. The company’s incorporation application is online using one of the two following incorporation methods:
   • Direct incorporation – combination of name reservation and incorporation process; or
   • Name reservation - submitting the incorporation application within 30 days or such longer period as the Registrar may allow (maximum of 180 days) after the name is approved.
5. Incorporation information that needs to be completed is as follows
   • The proposed company name
   • The status of a private or public company
   • The proposed type of business
   • The address of registered office
   • The business address
   • Complete details of directors(s) and promoter(s)
   • Declaration from directors(s) and promoter(s)
   • Declaration of compliance from individuals responsible for incorporation
   • Additional Documents (if any)” (Source).

     For-profit LLPs

     The steps to incorporating an LLP are as follows: “An LLP may be registered by an application made to the Registrar by furnishing the following information: - Name of the proposed LLP; - General nature of the proposed business of the LLP; - Proposed registered office of the LLP; - Name and details of every person who is to be a partner of the LLP; - Name and details of compliance officer(s) of the LLP; - If the LLP is formed for the purposes of carrying on any professional practice, the application shall be accompanied by an approval letter from the governing body as specified in the third column of the First Schedule of the LLP Act 2012; - Such other relevant information as may be specified by the Registrar.” (Source 1, Source 2).

This can be dome on the MyLLP portal online.

Non-Profits

Nonprofits organizations are known as ‘societies’ in Malaysia. They need to be registered in accordance with the Societies Act of 1966. According to the Registry of Societies, to set up a society,

1. “A meeting should be held to establish the organization attended by no less than 7 people and their names should be recorded in the minutes of the meeting.
2. Meeting shall approve the establishment of the following resolutions:-
   • Agreed on the establishment of the association
   • Approved the name of the organization
   • Approved place of business (address) that will be registered
   • Appoint the members of the Committee to conduct registration sponsor organizations
   • Approve the constitution and rules of the society registered
   • Noting the establishment of the proceedings (minutes) organizations, including the resolutions mentioned above.” (Source). Then, the documents should be brought to the local Registry of Societies (ROS) branch in Malaysia for incorporation. After registering, a society may apply for tax exemptions at the Tax Policy Department. (Source)

Sources:

• Setting Up A Business In Malaysia
• Malaysian Business Types
• Starting a Company in Malaysia
• Starting a Limited Liability Partnership in Malaysia
• LLPs in Malaysia
• Malaysia MyLLP Web Portal
• Registration of NGOs and Tax Exemption Applications in Malaysia