Does A Subsidiary Have To Be Registered

This ultimate guide will give yous a clearer understanding of a subsidiary company in Malaysia and the requirements needed.

A subsidiary visitor is one of the types of business entities in Malaysia that allow foreign buying, and if you are seeking to expand to Malaysia, you should consider this blazon of entity.

Let'due south see what is needed to prepare a subsidiary company in Malaysia.

What is a subsidiary company?

A subsidiary has a divide legal entity from its parent company. Therefore, the subsidiary is liable for its debts and liabilities.

A subsidiary is suitable for both foreign and local companies who want to expand their business in Malaysia. The company name does non need to be the same as the foreign parent visitor, and it can conduct all business organization activities.

Can foreigners fix a subsidiary company?

Aye, foreigners can set a subsidiary company. The company can be 100% endemic past a foreigner.

Requirements for setting up a subsidiary company

Proper name

The subsidiary company proper noun does non demand to be the same as the foreign parent visitor, and must register the company with the Companies Commission of Malaysia.

Officers

Subsidiary companies require a minimum of one corporate shareholder or tin exist a corporate that is either 100% local or 100% strange-owned.

I resident director is required. The resident director does not accept to be a Malaysian citizen, but has to take a principal residential address in Malaysia.

Staff

There are no restrictions on hiring local or strange staff to piece of work for the subsidiary visitor. Employment visa is required for foreign staff.

Documents required

Identification menu or passport of all shareholders and directors of the company
Residential accost of all directors and shareholders
Company particulars from the company'southward Registrar
Lath resolution approving the registration
Certified true copy of:
- The certificate of incorporation of your company
- The memorandum and articles of association or its equivalent
Memorandum of date or power of attorney authorising the person residing in Malaysia to take notices on behalf of the foreign company
Statutory proclamation by the agent of the foreign company

Get our in-depth guide covering everything you need to know most starting and managing your business organisation in Malaysia.

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Understand all compliance requirements

Steps of setting up a subsidiary company

one. Blessing of visitor name

At that place are two ways you can employ for a company name:

Direct incorporation

Information must exist completed during the application for the company name and incorporation of a company online and has a fee of RM 1,000. Once the name is approved past the SSM, the application to incorporate the company will directly be sent to the officer to be candy.

Name reservation

Information for the company name must be completed online and has a fee of RM 50.00 for each name applied. Once the proper noun is confirmed, the name volition be reserved for 30 days or longer from the appointment of approval. Later on applying for the company proper noun, the applicant can apply for incorporation with a fee of RM 1,000.

2. Registering a subsidiary company with the SSM

After the confirmation of the company proper noun, you must register with the SSM inside 30 days.

The fees for registration will depend on the authorised capital letter share of your visitor.

Authorised share uppercase (RM)	Fees (RM)
Upwardly to 400,000	1,000
400,001 – 500,000	3,000
500,001 – ane 1000000	5,000
1,000,001 – 5 1000000	viii,000
5,000,001 – x million	10,000
10,000,001 – 25 million	twenty,000
25,000,001 – l million	40,000
50,000,001 – 100 million	50,000
100,000,001 and in a higher place	70,000

A notice of the co-operative part registration will be issued one working day past the SSM one time all documents are completed and submitted.

Post-registration requirements and compliance

Appointing a company secretary

The company must appoint a company secretary within 30 days afterwards registering the company with the SSM. The company secretary must exist registered with the SSM and has a practising certificate that is issued by the SSM.

Opening a bank account

When you have registered your company in Malaysia, you tin open up a corporate bank business relationship. We recommend researching for a suitable banking company every bit different banks provide different benefits and fees.

There are many local and international banks y'all tin can cull from, some are:

Maybank
CIMB Bank
Public Banking concern Berhad
RHB Depository financial institution
Hong Leong Depository financial institution Berhad
UOB Banking company
HSBC Depository financial institution

Documents required when opening a business banking concern in Malaysia

The post-obit documents are required to open a corporate bank business relationship:

Completed awarding forms from the bank
Letter of introduction and recommendation from an existing customer of the bank (some banks require this, some do not)
Photocopy of directors and authorised signatory's identification cards
Certified true copy by the company secretary of:
- Company'southward constitution
- Section 78 – return of allocation of shares
- Section 58 – listing of directors
- Section 46 – registered office address
- Section 17 – certification of incorporation
- Resolution from the lath of directors to open an account and the listing of authorised signatories

Determination

Setting upward a subsidiary company is a good choice for foreign entities that want to expand their concern to Malaysia.

The registration process is rather simple considering that y'all have all documents prepared for registration. Withal, if you lot need guidance when registering your company, experience free to contactAcclime as we are e'er willing to help y'all.