What to Do After You Register a New Company in Malaysia

advisorytn

Oct 9

5 min read

Once you have registered a new company in Malaysia, your immediate priorities are opening a corporate bank account, registering for the relevant taxes, setting up payroll if you have employees, and ensuring your business is compliant with SSM’s ongoing requirements. Failure to complete these steps by certain deadlines can result in penalties and your company’s good standing with the law at risk.

Many founders assume that once they register a new company, the hard part is over. In reality, incorporation is just the starting line. What you do in the first 30 to 90 days will shape your compliance track record, your relationship with LHDN (Inland Revenue Board), and your ability to operate smoothly. Here is a practical roadmap to follow.

Open a Corporate Bank Account Immediately

You should keep your business finances entirely separate from your personal accounts. This is not only good practice but is also a legal expectation for Sdn Bhd companies in Malaysia. Banks typically need your Certificate of Incorporation, the company’s constitution (prior to M&A), director ICs and your SSM business profile.

The major Malaysian banks are Maybank, CIMB and Public Bank, all of which offer SME-specific current accounts with online banking, multi-signatory capability and accounting software integration. Put this in place within the first two weeks of incorporation.

Register for Tax With LHDN

Every company incorporated in Malaysia must register a tax file with LHDN. You can do this online via MyTax (mytax.hasil.gov.my). Registration should be completed within three months of incorporation.

What Tax Numbers Do You Need?

At a minimum, you need a company income tax reference number (prefixed with "C"). If you plan to hire staff, you also need an employer tax number (prefixed with "E") to facilitate monthly salary tax deductions under the PCB (Potongan Cukai Berjadual) system.

According to the latest tax framework published by LHDN, Malaysia’s corporate tax rate for resident small and medium companies is 15% on the first RM150,000 of chargeable income, and 17% on the subsequent RM450,000. The standard rate applies above that level.

Register for SST If Your Revenue Qualifies

If you expect that your taxable turnover in a year will exceed RM500,000, you must register for Sales and Service Tax (SST) with the Royal Malaysian Customs Department (RMCD). You can register through the MySST portal.

Not all businesses are liable – it is contingent upon the type of goods or services you supply. The rate revision has made the service tax 8% on most taxable services from the earlier rate effective from March 2024. See the RMCD service tax guide to find out if your business category is taxable.

Set Up Your Statutory Registers and Annual Obligations Under the Companies Act 2016

Under the Companies Act 2016, every Sdn Bhd must maintain the following from the date of incorporation:

These are not optional paper works, SSM can check during audit. You are also required to appoint a Company Secretary within 30 days of incorporation. The Secretary must be a licensed individual registered with SSM or a member of a recognized professional body such as MAICSA.

Annual Return and Financial Statements

Your company must lodge an Annual Return with SSM within 30 days of its anniversary date each year. You will also need to prepare audited financial statements within 6 months of your financial year-end — unless you qualify for audit exemption under the Companies (Audit Exemption) Order 2017.

Register as an Employer With SOCSO, EPF, and EIS

If you are hiring even one employee — including yourself as a director drawing a salary — you must register with the following bodies:

EPF (KWSP): Mandatory retirement savings contribution. Register via i-Akaun Majikan. Current employer contribution rate is 13% for employees earning below RM5,000.
SOCSO (PERKESO): Work injury and invalidity scheme. Register at mySIPP portal. Contributions are shared between employer and employee.
EIS (SIP): Employment Insurance System, managed by SOCSO. Protects employees who lose their jobs. Rate is 0.4% split equally between employer and employee.

Failure to register or contribute carries financial penalties and can expose directors to personal liability under the Employment Act 1955 and the EPF Act 1991.

Get the Right Licences for Your Industry

Company registration with SSM gives you a legal entity — it does not automatically authorise you to operate in every industry. Depending on your business activity, you may need additional approvals

F&B businesses need a business premises licence from the local municipal council (Majlis Bandaraya or Perbadanan)
Financial services require licensing from Bank Negara Malaysia (BNM)
Healthcare facilities require approval from the Ministry of Health
Import/export businesses may need permits from MITI or FAMA

Check with your respective regulatory body early. Operating without the correct licence can result in fines or forced closure — even if your SSM registration is valid.

Set Up Proper Bookkeeping From Day One

Get your accounts in order before you file your first tax. Build a basic cloud accounting system from scratch. In Malaysia, SMEs tend to use local tax compliant platforms like SQL Accounting, AutoCount or QuickBooks.Keep all receipts, invoices, contracts and records of payment. Companies are required to maintain their financial records for a minimum of seven years under the Income Tax Act 1967. Good records also mean a quicker and much less expensive annual audit.

Consider Professional Tax and Compliance Support

Managing corporate tax, SST, payroll, SSM filings and statutory accounts all at once is a major operational burden – particularly in your first year. Many new companies use a registered tax agent or audit firm to stay on top of deadlines and avoid costly mistakes.

From day one of incorporation, TN Advisory can guide you as experts on tax compliance and corporate obligations. We provide end-to-end support to new business in Malaysia, from company registration to annual tax filing and audit services.

Getting these foundations right early means fewer surprises, lower compliance costs, and more time to focus on actually growing your business.

Frequently Asked Questions

How soon after I register a new company must I open a business bank account?

There is no hard and fast legal time limit but you should open a corporate bank account within the first 2 weeks of incorporation. Companies that are Sdn Bhd are required by law to keep business finances separate from personal accounts. This is also important for audit and bookkeeping purposes, keeping them clean.

Do I need to register for SST when I register a new business in Malaysia?

Not automatically. SST registration is only required if your annual taxable turnover exceeds RM500,000. However, it is good practice to monitor your revenue early and register proactively with the Royal Malaysian Customs Department once you approach that threshold.

What is the deadline to register a company tax file with LHDN?

You must register your company's income tax file with LHDN within three months of the date of incorporation. Registration is done online via the MyTax portal. Delaying this can affect your ability to file returns correctly and may attract penalties from the Inland Revenue Board.

Is a Company Secretary mandatory for a new Sdn Bhd in Malaysia?

Yes. Under the Companies Act 2016, every Sdn Bhd must appoint a licensed Company Secretary within 30 days of incorporation. The secretary must be a registered individual with SSM or a member of a recognised professional body such as MAICSA or MIA.