Starting an SDN BHD (Sendirian Berhad) company in Malaysia is an exciting venture, but it can also be a bit daunting if you’re not fully prepared. Whether you’re an aspiring entrepreneur or a seasoned business owner looking to upgrade to an SDN BHD, it’s crucial to ensure you’ve covered all the bases before making your move. To help you get started, we’ve put together a comprehensive checklist to make sure you’re fully prepared for the journey ahead. Let’s dive in!
1. Understand the Basics of an SDN BHD
Before taking the plunge, make sure you understand what an SDN BHD is and what it entails: Private Limited Company: Shares are not publicly traded. Separate Legal Entity: The company has its own legal status separate from its owners. Limited Liability: Shareholders’ liabilities are limited to the amount they invested. Corporate Tax: SDN BHD companies are taxed at the corporate rate. If this structure aligns with your business goals, you’re on the right track!
2. Choose a Unique Company Name
Your company name must be unique and not already in use by another business. To check your proposed name’s availability: Visit the Suruhanjaya Syarikat Malaysia (SSM) website. Use the MyCoID system to verify the name. Make sure your name is: Meaningful and Professional Easy to Pronounce and Spell Relevant to Your Business Niche
3. Identify Your Business Activities
List down your primary business activities and ensure they fall under the permitted categories according to the Malaysian Standard Industrial Classification (MSIC). This step is crucial when submitting your application to SSM.
4. Prepare Your Documents
Make sure you have the following documents ready: Proposed Company Name and Description Nature of Business and MSIC Code Details of Directors and Shareholders (at least one director must reside in Malaysia) Company Constitution (optional) Business Address Proof
5. Determine Your Share Structure
Decide how your company’s shares will be distributed among the shareholders. You must: Have at least one shareholder. Clearly define share capital and share allocation. Ensure your directors and shareholders meet the eligibility criteria.
6. Appoint Your Company Secretary
An SDN BHD in Malaysia must appoint a licensed company secretary within 30 days of incorporation. The secretary must be: A member of a professional body recognized by SSM. A licensed secretary under the Companies Commission of Malaysia Act 2001.
7. Registered Office Address
Your registered office address must be a physical address in Malaysia. This will be the official place for communication and storing statutory documents.
8. Open a Corporate Bank Account
To manage your company’s finances effectively, you’ll need a corporate bank account. Prepare these documents: Certificate of Incorporation (Form 9) Company Resolution to Open an Account Directors’ Identity Proof Company Constitution (if applicable)
9. Register for Taxes
Once your company is incorporated, you need to register for relevant taxes, including: Income Tax (via LHDN) Sales and Service Tax (SST), if applicable EPF (Employees Provident Fund) and SOCSO (Social Security Organization) for your employees
10. Set Up Accounting and Bookkeeping Systems
To ensure compliance and manage finances effectively: Implement an accounting software or hire a professional accountant. Keep records of all financial transactions. Prepare for annual auditing and reporting.
11. Develop a Business Plan
A solid business plan will help guide your journey and make it easier to secure financing. Include: Business Objectives Revenue and Profit Projections Marketing and Operational Strategies