Post Incorporation Matters

Starting a company in Malaysia involves more than just incorporation with the Companies Commission of Malaysia (SSM). Once a company is officially registered, there are several essential post-incorporation steps to ensure compliance with legal requirements and smooth business operations. Below are the key post-incorporation matters that company owners should address:

1. Opening a Corporate Bank Account

A corporate bank account is necessary for managing company transactions. Most banks require the following documents:

• • Certificate of Incorporation (Section 17, Companies Act 2016)
  • Constitution (if adopted)
  • Superform (Section 14)
  • Board resolution authorizing the opening of the account
  • Forms and identity documents of directors and signatories

2. Appointment of Company Secretary

Under the Companies Act 2016, every company must appoint a licensed company secretary within 30 days of incorporation. The company secretary plays a crucial role in ensuring regulatory compliance and maintaining statutory records.

3. Registering for Statutory Compliance

Companies may need to register with various government bodies depending on their business nature:

• • LHDN (Inland Revenue Board of Malaysia) – For tax registration and obtaining a tax file number
  • SOCSO, EPF, and EIS – Registration with PERKESO and the Employees Provident Fund for staff contributions
  • Customs Department – If the company plans to register for the Sales and Service Tax (SST) or apply for import/export licenses

4. Applying for Business Licenses & Permits

Certain industries require specific licenses, such as:

• • Retail and F&B – Business premises license, Halal certification (if applicable)
  • Construction & Engineering – CIDB registration
  • Import/Export & Trading – Import/export licenses from the Royal Malaysian Customs Department

5. Setting Up Proper Accounting and Bookkeeping Systems

Companies should establish an accounting system to track financial transactions. Hiring an accountant or subscribing to accounting software can help manage tax filings, payroll, and financial reporting.

6. Registering for Goods and Services Tax (GST) / Sales and Service Tax (SST)

Businesses exceeding the taxable threshold must register for SST with the Royal Malaysian Customs Department. Compliance with tax obligations is crucial to avoid penalties.

7. Maintaining Statutory Records and Registers

Companies are required to maintain statutory records, such as:

• • Register of Members and Directors
  • Minutes of meetings
  • Financial statements and annual returns

8. Annual Compliance & Filings

Each year, companies must:

• • File annual returns with SSM
  • Prepare and submit audited financial statements (except for exempted private companies)
  • Declare and pay corporate taxes to LHDN

Conclusion

Properly managing post-incorporation matters ensures that the company remains compliant with Malaysian regulations. Failing to adhere to statutory requirements can lead to penalties and business disruptions. Seeking professional assistance from a corporate service provider or company secretary can help navigate these obligations efficiently.

For more information, feel free to contact us.