There are some guidelines to set up or register your business under the MM2H program. These are as follows:-

Registering Your Business

For registering your business, you are required to contact the Companies Commission of Malaysia and register with it under the Companies Act 1965. You are eligible to register only a limited company in Malaysia.

Company Structure

According to the Companies Act 1965, a person must register a company with the SSM in order to engage in any business activity.

It provides for three types of Companies: -

  • A company limited by shares where the personal liability of its members is limited to the par value of their shares and the number of shares taken or agreed to be taken by them.
  • A company limited by guarantee where the members guarantee to meet liability up to an amount nominated in the Memorandum and Articles of Association in the event of the company wound up.
  • An unlimited company, where there is no limit to the members’ liability.

Company Limited by Shares

A company limited by shares is the most common structure in Malaysia. These types of limited Companies may be either private or public. Those companies having a share capital may be incorporated as  a private company if its Memorandum and Articles of association:

  • It restricts the right to transfer its shares.
  • It limits the number of its members to 50, excluding employees in the employment of the company or its subsidiary and some former employees of the company or its subsidiary.
  • It prohibits any invitation to the public to subscribe for its shares and debentures.
  • It prohibits any invitation to the public to deposit money with the company.

A public company can be formed or alternatively, one can convert private company into a public company which subject to Section 26 of the Companies Act, 1965.   These companies can offer its shares to the public provided:

I.  It has registered a prospectus with the securities commission.

II.  It has lodged a copy of the prospectus with the SSM on or before the date of its issue.

A public company can apply to have its shares back by quoting the Kuala Lumpur Stock Exchange (KLSE) subject to compliance with the requirements that laid down by the exchange.

Capital Requirement

RM 250,000 is the minimum capital investment in terms of a company’s shareholders fund, which include paid up capital and reserves and subject to the existing government policies, regulations and guidelines which are in force for the relevant sectors.

Registration of Local Company

Those who want to register a local company have to submit the required registration documents and fees payable to the commission.

Local Company shall have:

1)  At least two directors

2)  Company Secretary who is a member of a professional body prescribed by the Ministry or is licensed by the Commission.

Registration Procedure

Before registering or proposing a name for incorporation of the company, name search has to be done to clarify whether the name can be used to register the company or not. The steps of this procedure are:-

  • Complete Form 13 A.
  • Pay a RM30 fee for each name applied. The name should be reserved for three months from the date of approval.
  • Within the three months, submit the documents given below:-

a)      Memorandum and articles of Association.

b)      Form 48A-statutory declaration by a director or promoter before appointment.

c)       Form 6 – Declaration of Compliance.

d)      Original copy of Form 13A.

e)      A copy of the letter approving the name.

f)       A copy of the identity card of each director and company secretary.

g)      Registration fees for the share capital.

Authorized Share Capital (RM)                           Fees (RM)

Up to 100,000                                                               1,000

100,001-500,000                                                           3,000

500,001-1 million                                                           5,000

1,000,001-5 million                                                       8,000

5,000,001-10 million                                                     10,000

10,000,001-25 million                                                   20,000

25,000,001-50 million                                                   40,000

50,000,001-100 million                                                 50,000

100,000,001 and above                                                70,000

 This application for a company license should be made to the CCM using Form 48B/48C. Every   license will be granted or renewed is valid for 3 years only. After that, participants will have to  renew it again.