GETTING STARTED
Business Entity
 Firm registered under the Registration of
Businesses Act 1956
 Partnership registered under the Limited Liability
Partnership Act 2012
 Company incorporated under the Companies Act
1965
 Corporate body formed under any other written
laws of the country
 Foreign Company
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Registration of Businesses Act 1956
 Sole - proprietorship
 Partnership (conventional partnership)
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Limited Liability Partnership Act 2012
 Partnership
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Companies Act 1965
 Public Company
 Private Company
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Companies
 Limited by shares
 Limited by guarantee
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Other Corporate Body
 Co-operative – Co-operative Societies Act
1993
 Society - Societies Act 1966
 Trust
 Statutory Body
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Public Company
A company other than a private company
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Private Company
 restricts the right to transfer its shares
 limits to not more than fifty the number of its members (counting
joint holders of shares as one person and not counting any
person in the employment of the company or of its subsidiary or
any person who while previously in the employment of the
company or of its subsidiary was and thereafter has continued to
be a member of the company)
 prohibits any invitation to the public to subscribe for any shares
in or debentures of the company
 prohibits any invitation to the public to deposit money with the
company for fixed periods or payable at call, whether bearing or
not bearing interest
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Exempt Private Company
Private Company –
 financial interest is not held directly or indirectly
by any corporation
 not more than twenty members none of whom is
a corporation
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GETTING STARTED
ACCOUNTING (AND OTHER RECORDS)
S.166A(2) CA 1965
The approved accounting standards shall apply to the accounts of
the company or the consolidated accounts of a holding company if,
at the time when the accounts or consolidated accounts are made
out, the approved accounting standards (a) apply in relation to the financial year of the company or the
holding company to which the accounts or consolidated
accounts relate; and
(b) are relevant to those accounts or consolidated accounts
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Approved Accounting Standards
S.166A CA 1965
Compliance with applicable approved accounting
standards issued by the Malaysian Accounting
Standards Board (MSAB)
(Financial Reporting Act, 1997)
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Accounting (and other records)
S.167(1) CA 1965

Explain the transactions and financial position
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True and Fair
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Profit and Loss Account
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Balance Sheet
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Audited
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ACCOUNTS
S.4 CA 1965
Accounts means profit and loss accounts and
balance sheets and includes notes or statements
required by this Act (other than auditors’ reports or
directors’ reports) and attached or intended to be
read with profit and loss accounts or balance
sheet.
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ACCOUNTING REQUIREMENTS
Ninth Schedule CA 1965
Statements of Changes in Financial Position
(Cash Flow Statement)
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ACCOUNTING REQUIREMENTS
S. 166(A)(6) CA 1965
Where any conflict or inconsistency arises
between the provisions of an applicable
approved accounting standard and a provision
in the Ninth Schedule in their respective
applications to the accounts or consolidated
accounts or consolidated accounts of a
company, the provisions of the applicable
approved accounting standard shall prevail
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RECEIPTS
S.82 ITA 1967
 Issue of Receipts
 Gross Takings - Sale of Goods Exceeds RM150,000 per annum
 Gross Takings - Services - Exceeds
RM100,000 per annum
 Exception – machine is used for recording
sales
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Entries
S.167(1A) CA.1965
S.82(6) ITA 1967
Recorded within 60 days
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Retention
S.167(2) CA 1965
S. 82(1) ITA 1967
Seven years
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ANNUAL COMPLIANCE
Inland Revenue Board – Income Tax Return
Companies Commission of Malaysia – Annual
Return
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Regulatory Requirements - General
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Registered Business Entity
Local Authority Licence
Signboard Licence
Fire Department Approval
Approval for Renovation
Department of Environment Approval
Notification to Labour Office
Registration with SOCSO
Registration with EPF
Registration as an Employer (E) and Employees for
Tax Purposes
 Registration with the Inland Revenue Board
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Regulatory Requirements – Specific to Industries
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Manufacturing Licence
Sales Tax / Service Tax Licence
Licensed Manufacturing Warehouse Licence
Department of Occupational Safety and Health Requirements
Registration with Pembangunan Sumber Manusia Bhd
(Human Resources Development Bhd)
 Fire Certificate for Designated Premises
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Regulatory Requirements – Specific to Industries
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Ministry of Health Requirements
Control Items’ Licences
Chemistry Department Requirements
Importers / Exporters Code
Export / Import Licence
Printing Press Licence
Halal Certification
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PROCEDURES FOR THE INCORPORATION OF COMPANIES LIMITED BY SHARES
Search of Name and Reservation of Name
Submit Form 13A to CCM
Upon approval of proposed name, the name is automatically reserved for three
months from the date of approval
Lodgment of documents for incorporation
Submit to CCM:Memorandum and Articles of Association
Subscription for Shares and Signatures are to be hand written.
First Directors and Secretary have to be named in the Memorandum and Articles
of Association.
Form 6: Declaration of Compliance – To be signed by the first secretary named
in the Articles of Association.
Form 48A: Statutory Declaration by a person before appointment as a director or
by a promoter before incorporation of company -–To be signed by each director
or promoter separately in the presence of a Commissioner for Oaths. A copy
should be lodged with the Official Receiver.
Form 48F : Declaration by a person named in the Memorandum and Articles of
Association as first secretary.
Original Form 13A with the approval stamp.
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INFORMATION FOR INCORPORATION
1. Proposed Name
Please provide at least three names to expedite search of name and choice. Also if
it is similar to an existing name, please obtain consent letter / letter of no objection.
Please provide name and I/C of 2 proposers
2. Principal Activity
Normal duration of search is 3 working days.
Upon approval of name we will require the following details. (This may also be done before the name is
approved).
1. Name of at least two subscribers – copies of Identification (I/C) to be provided.
2. Proposed authorised and paid up capital.
3. Name of first directors (including at least two directors resident in Malaysia) – Copies of identification (I/C) to
be provided.
4. Main objects clause.
5. Proposed Secretary – copies of I/C to be provided (Must be resident in Malaysia)
6. Vocation of Directors, Shareholders and Secretary.
7. Any special instruction (example – address different from I/C, dating of documents)
Normal duration for incorporation is 10 working days. (Online registration would normally take 3 working days.)
The above estimated duration does not include preparation and waiting time for signatures.
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Regulatory Requirements - General
a ) Local Authority Licence
Purpose : All premises to be used for business purposes must be licenced, depending on the
suitability of the premise for the trade by the local authority.
b) Signboard Licence
Purpose : Every person who wishes to display a signboard in public requires a signboard licence
from the local authority.
c) Fire Department Approval
Purpose : To ensure that there are fire safety equipment and procedures appropriate to the trade
and premises. This will be to support the application for the local authority licence.
d) Approval for Renovation
Purpose : Any renovation or extension of premises must be approved by the local authority
before it can be done. This approval is to ensure that conditions of the premise is suitable for
occupation.
e) Department of Environment Approval
Purpose : This approval is only applicable to the manufacturing sector. It is to ensure that
methods of production and wastage generated do not pollute the environment including noise
control.
f) Notification to Labour Office
g) Registration with SOCSO
h) Registration with EPF
i) Registration as Employer (E) and Employees for tax purposes
j) Registration with the Inland Revenue Board
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Regulatory Requirements – Specific to Industries
a) Manufacturing Licence
Purpose : Manufacturing companies in Malaysia having shareholders’ funds of at least RM2.5 million and / or
engaging more than 75 full-time employees are required to apply to MIDA for a manufacturing licence. This is to
regulate the manufacturing sector in Malaysia.
b) Sales Tax and Service Tax Licence
Purpose : Licensing under the respective Sales and Service Tax legislation for the collection of sales and service tax
for specified businesses.
c) Controlled Items
Purpose : Certain items are controlled with regard to their price, usage and storage eg. Rice, sugar, flour, etc.
d) Employment of Expatriate Personnel (Work Permits)
Purpose : It is the Government’s policy that Malaysians are eventually trained and employed at all level of
employment. Companies are encouraged to train more Malaysians so that organisation will reflect the multi-racial
composition of the country. Notwithstanding this, foreign companies are allowed to bring in expatriate personnel in
areas where there is a shortage of trained Malaysians to do the job.
Guideline : A company with a paid-up capital of US$2 million and above will normally be allowed five expatriate
posts. Additional expatriate posts will be given when necessary, upon request.
A company with a paid-up capital of less than US$2 million will be considered as follows :
For executive positions which require professional qualifications and practical experience, expatriates may be
employed up to a maximum period of 10 years, subject to the condition that Malaysians are trained to eventually
take over those positions.
For non-executive positions which require technical skills and experience, expatriates may be employed up to a
maximum period of five years, subject to the condition that Malaysians are trained to eventually take over those
positions.
(The approval will be given on the merits of each case.)
A company with a paid-up capital of RM500,000 can be considered for one key post and other time posts and each
case will be considered on its merits.
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Regulatory Requirements – Specific to Industries
e) Licensed Manufacturing Warehouse
Purpose : This is a custom facility to enable businesses that export their products to enjoy purchasing raw materials
and components without first having to pay import duty and sales tax. This facility is only available if the company
export at least 80% of their output.
f) Import and Export Code
Purpose : All companies involved in import and export must obtain a code number from the Customs Department
(known as trader’s code). This code is needed when submitting custom declarations for import and export at the
custom station.
g) Registration with Pembangunan Sumber Manusia Bhd (Human Resources Development Bhd)
Purpose : Section 13 of the Pembangunan Sumber Manusia Bhd Act, 2001 requires an employer to register with
Pembangunan Sumber Manusia Bhd. (The threshold varies with each industry.) Registered companies are required
to pay a Human Resources Development levy for each employee at a rate of one per centum of wages.
The collection of Human Resources Development Fund (HRD Fund) is to promote, develop and upgrade the skills of
employees.
h) Occupational Safety and Health Requirements –
Factory and Machinery Installation Approval and Hazardous Substances Licensing
Purpose : To ensure that machineries installed and hazardous substances used comply with safety regulations.
Formation of Occupational Safety and Health Committee
Purpose : The Occupational Safety and Health Act 1994, requires companies that employ 40 or more workers to
form an Occupational Safety and Health Committee, in order to promote and develop measures to ensure the safety
and health of employees at the place of work and to check the effectiveness of such measures.
i) Halal Certification
Purpose : To be recognised as a food outlet eligible for Muslim customers and as a training centre (if necessary) for
the Muslim way of serving food and to supply and sell food for consumption by Muslims.
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GETTING STARTED
Reference
Government
Malaysia Government
www.malaysia.gov.my
Legislation
Attorney General’s Chambers
www.federalgazette.agc.gov.my
Finance
Treasury
www.treasury.gov.my
Banking
Bank Negara Malaysia (Central Bank)
www.bnm.gov.my
Investments
International Trade and Industry
www.miti.gov.my
Malaysian Investment Development Authority www.mida.gov.my
Income Tax
Lembaga Hasil Dalam Negeri Malaysia
www.hasil.gov.my
Customs
Royal Malaysian Customs Department
www.customs.gov.my
Statistics
Department of Statistics
www.statistics.gov.my
Business
Companies Commission of Malaysia
www.ssm.com.my
Securities
Securities Commission Malaysia
Stock Exchange
Bursa Malaysia
www.bursamalaysia.com
Labour
Ministry of Human Resources
www.mohr.gov.my
Employees Provident Fund
www.sc.com.my
Kumpulan Wang Simpanan Pekerja
Employees Social Security
Pertubuhan Keselamatan Sosial
www.perkeso.gov.my
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www.kwsp.gov.my
GETTING STARTED
Reference
Occupational Safety and Health
Department of Safety and Health
www.dosh.gov.my
Human Resource Development
Pembangunan Sumber Manusia Bhd
www.hrdf.com.my
Immigration
Immigration Department of Malaysia
www.imi.gov.my
Education Malaysia
Ministry of Higher Education
Ministry of Education
www.mohe.gov.my
www.moe.my
Health
Ministry of Health
www.moh.gov.my
Tourism
Tourism Malaysia
www.tourism.gov.my
Public Security
Police
www.rmp.gov.my
Lawyers
Malaysian Bar
www.malaysianbar.org.my
Accountants
Malaysian Institute of Accountants
www.mia.org.my
Tax Professionals
Chartered Tax Institute of Malaysia
www.ctim.org.my
Professional Bodies
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GETTING STARTED
Disclaimer
The information provided is for guidance only and is not
exhaustive.
SQM and the ASQ group of companies shall not be liable
for any loss or damage caused by the usage of or
reliance on the information and guidance provided on
this presentation and from the SQM and ASQ websites.
Professional advice and assistance must always be
obtained before you act on any of the guidance provided.
Please refer to the respective legislation and the
regulatory authorities for authoritative guidance.
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GETTING STARTED
For professional advice and assistance on
“Doing Business in Malaysia”
“Getting Started”
you may contact us at :
ASQ Consultants Sdn Bhd, Company No.
449072K
Suite 15.08, Level 15 City Square Office Tower
106-108 Jalan Wong Ah Fook
80000 Johor Bahru, Malaysia
Telephone :
+60 7 2225202
Facsimile :
+60 7 2238808
E-mail :
admin@asq.com.my