A Complete Guide To Online Company Incorporation In Malaysia
While we don’t think anyone expects online company incorporation to be as simple as buying stuff on Shopee, it’s more tedious than many think, so we’ll start with a key clarification.
If registering yourself for the first time, fully online company incorporation is not possible.
This is because you’ll need to sign up as a user on MyCoID, SSM’s portal for Sdn Bhd registration.
The KYC process for a MyCoID account requires physically visiting an SSM branch to verify your identity. The rest of the process can be done online, including the actual company incorporation.
If learning about this makes you uncertain about the time expense, here are two things that can help:
- a list of SSM locations to help you see how far you’ll have to travel
- learn how 100% online incorporation services are possible
For readers who don’t mind getting behind the wheel, read on as we cover the A – Z of online company incorporation in Malaysia, including:
- details to prepare beforehand
- steps in the Sdn Bhd incorporation process
- challenges to be ready for, and
- how some can advertise incorporation in days
Let’s begin.
Details needed to incorporate
Upon submiting an application to incorporate a Sdn Bhd, you’ll need to fill in what’s called an SSM Superform, which sounds way cooler than it actually is.
A Superform is used to record company key information, including:
- proposed company name
- nature and description of business
- company type (shares vs guarantee)
- registered address
- director details
- shareholder details, and
- Company Secretary details
Coming up with a company name, selecting MSIC codes, and writing an accurate description can take time – so for the smoothest application, prepare them before you kickstart the MyCoID journey.
If you’re familiar with these terms, or better yet, if you already have them on hand, skip to the next section, while those scratching their heads might want to make a quick detour to these resources:
- SSM company naming guidelines and best practices
- how to write an SSM nature of business description
- guide to finding the right MSIC codes
At the very least, consider starting with appointing a Company Secretary, a mandatory officer for all companies in Malaysia, so it’s someone you’ll have to hire eventually anyways.
Your Company Secretary will then advise you on how to get the required information.
For now, let’s move to the incorporation process itself.
Steps to online company incorporation
As we said, it’s done via MyCoID, and in total consists of four main steps, including the physical SSM visit.
As we’ll never know how many applications are being processed, expect this to take two to four weeks.
Step 1: Sign up as an individual user
Visit the MyCoID sign up page and fill in the registration form with your personal details
If your submission is successful, you’ll get a prompt to check your email.
The verification email should be sitting in your inbox and will contain your unique Reference Number to track your account application status.
There will then be a follow-up email asking you to physically visit an SSM branch for verification.:
Hey, nobody said the process was fully online, right?
Step 2: Visit your nearest SSM branch
As the message says, you have 14 days from the date of the email to physically visit an SSM office for them to verify your identity and activate your user account.
Here’s an official directory of all SSM branch locations, and remember to bring along:
- Your MyCard / MyPR / Passport, and
- a copy of the notification email
Approval is usually done within one to two working days, after which you can log in to MyCoID with your user credentials.
Step 3: Submit incorporation application on MyCoID
Log into your MyCoID account and you’ll be greeted by the homepage.
Select ‘Direct Incorporation’ and you’ll be taken to a name search page to check if your proposed company name if available or already in use.
Assuming it’s available, you can proceed with filling in the Superform with the details we covered in the section above.
It would be too long for us to reasonably cover here, but you can check out the SSM MyCoID User Manual for an item-by-tem breakdown of how to complete the form.
Step 4: Make payment
You’ll be redirected to a pretty self-explanatory payment gateway. The fee for incorporating a company limited by shares is RM1,010 and can be made by debit or credit card.
If payment is successful, you’ll receive a notification that looks like this:
Foe now, your job is done, and it’s time to let SSM officers review your application.
Note: We hesitate to provide a concrete time frame as it can vary substantially based on how many applications are being processed. Don’t be surprised if it takes up to a week for your application to be reviewed!
Upon approval, you’ll receive an email from SSM titled ‘Notice of Registration’ which will contain proof of your incorporation in the form of a document called the Notice of Registration or Section 15.
And there you go, a successfully incorporated Sdn Bhd.
It seems simple enough, and it very well could be, but allow us to leave you with a word of warning about typical challenges you should be ready for.
Challenges of incorporating yourself
Pardon us for starting this section like an advertisement, but the MISHU team incorporates dozens of companies a month – it’s our bread and butter.
We also provide a one-stop solution for post-incorporation business support, and if you are going to handle this entire thing independently, here are four challenges you’ll inevitably face.
1. Describing business nature
A company’s business nature is explained in the Superform through a combination of up to three MSIC Business Codes and a long-form description of up to 200 words.
This is no problem for simpler businesses, but businesses with complex or extensive activities can struggle to accurately capture how they generate revenue.
2. Addressing SSM queries
Not every incorporation application is automatically approved, and SSM officers will occasionally send applicants an official query that they must address before re-submitting the application.
Queries can be on various topics, and more technical amendments can be confusing to first time applicants.
3. Applying for business licenses
After incorporation, a business must still do a million other things before legally operating, the most pressing of which is probably applying for business licenses – and at the very least, most will need a PBT composite license.
Doing all this yourself as an inexperienced entrepreneur means even more time spent on administrative burdens instead of growing the business.
4. Opportunity cost of time lost
It’s no surprise some hire us the moment they find out they must otherwise physically visit SSM!
It’s a business decision. Incorporating yourself may be financially cheaper, but costs singnificantly more time queuing up, searching for available names, and finding the right business codes out of over 1000 options.
This section isn’t meant to discourage you from applying yourself, but to ensure that those who do go the DIY route do so with full clarity of the commitment involved.
How 100% online incorporation works
You’ve probably came across multiple ads offering fully online incorporation within days.
These are usually Company Secretaries, who have professional (not individual) MyCoID accounts that can submit incorporation applications on behalf of others – so incorporation is 100% online because you don’t need to physically visit SSM.
As for how long it takes, some providers say it can be done in three days, but we feel this may be more marketing than anything – our experience is 7 – 10 business days is more realistic.
But that’s still a lot faster and more convenient than doing it yourself!
So if the idea of driving to SSM and filling in forms sounds exhausting, a professional service provider may be worthwhile – doesn’t have to be us, but we’d prefer that it was!
One final word of caution: Be careful with providers advertising incorporation packages below SSM’s RM1,010 incorporation fee – it often means bundled services and hidden charges.
That’s it from us, and we wish you all the best with your incorporation journey 😊
Incorporate your company online with MISHU
MISHU’s dedicated team is here to help you every step of the way, giving you the freedom to fully focus on growing your business from day one.