What costs more than the RM1,000 incorporation fee you pay to SSM (Suruhanjaya Syarikat Malaysia, the Companies Commission of Malaysia)? Running a Sdn Bhd. That fee covers only the incorporation filing, with a separate RM50 per 30 days name reservation fee if you choose that route. Your first year also includes a company secretary, annual filing fees, accounting, and potentially an auditor. This article breaks down every cost component so you know what you are actually signing up for before you incorporate.
TL;DR
- SSM’s direct incorporation fee for a Sdn Bhd (company limited by shares) is RM1,000, with a separate RM50 per 30 days fee if you choose to reserve a name in advance.
- Minimum paid-up capital is legally RM1, but banks, licensing bodies, and expatriate work-pass applications may expect a much higher figure in practice.
- Every Sdn Bhd must appoint a qualified company secretary within 30 days of incorporation (Companies Act 2016, Section 236(2)), and this comes with ongoing annual fees, not a one-time cost.
- Annual compliance costs include an SSM Annual Return fee of RM150, a financial statement lodgement fee of RM50 (audited) or RM20 (unaudited), and possibly an auditor’s fee if your company doesn’t qualify for audit exemption.
- Late filings carry real financial risk: SSM late-lodgement penalties plus separate court fines upon conviction, so budgeting for compliance on time is cheaper than catching up later.
What does SSM actually charge to register a Sdn Bhd?
SSM’s registration fee is the starting point, but it’s a small slice of your total setup cost. The current SSM registration fees for Sdn Bhd incorporation include an incorporation fee of RM1,000 for a company limited by shares, and, if you choose to reserve a company name in advance, a separate name reservation fee of RM50 for every 30 days (up to a maximum of 180 days). Direct incorporation, which combines the name search and incorporation process, is listed by SSM at RM1,000.
This fee covers only the act of registering your company with SSM. It does not cover a company secretary, accounting, tax filing, or a business license for your specific industry. Think of it as the cost of getting your birth certificate, not the cost of raising the child.
How much paid-up capital do you actually need?
Paid-up capital is the money shareholders put into the company in exchange for shares. The legal minimum for a Sdn Bhd in Malaysia is RM1 (Section 68 of the Companies Act 2016). You can technically incorporate with just one Ringgit.
In practice, though, other parties may ask for more:
- Banks may expect a higher paid-up capital before approving a corporate account, depending on the bank’s internal policy.
- Certain business licenses require a minimum paid-up capital before they’ll process your application.
- If you plan to hire expatriates or apply for work passes, you may need to show a higher paid-up capital to meet immigration requirements.
If you’re a local founder running a small professional services business, RM1,000 to RM10,000 in paid-up capital is common and workable. If you’re foreign-owned or plan to sponsor expatriate staff, budget much higher from day one.
Why does a company secretary cost money every year, not just once?
Every company incorporated under the Companies Act 2016, whether Sdn Bhd or Berhad, must have at least one qualified company secretary at all times (Section 235). The board must appoint the first secretary within 30 days of incorporation (Section 236(2)), and notify SSM within 14 days (Section 58).
A company secretary is not a one-time hire. The position must always be filled (Section 240). Secretary fees are usually billed as an annual subscription, reflecting the recurring nature of statutory registers, resolutions, and SSM filings that happen every year, not just once at incorporation.
A qualified company secretary must meet one of two routes under Section 235(2): membership of a professional body listed in the Fourth Schedule (such as the Malaysian Association of the Institute of Corporate Secretaries and Administrators, or MAICSA, or the Malaysian Institute of Accountants, or MIA), or a licence issued by SSM. The person must also register with SSM and hold a valid practising certificate (Section 241). A secretary’s cost reflects these statutory qualifications and ongoing compliance work, not an administrative assistant role.
What does SSM charge every year after incorporation?
A related but distinct cost sits outside the secretary’s fee: SSM’s own annual filing charges. The Annual Return for a private company costs RM150 to lodge. Submitting financial statements costs RM50 if audited and RM20 if unaudited. Beneficial Owner (BO) information (the individual who actually owns or controls the company) is submitted as part of the Annual Return process, with no separate SSM filing fee.
Under Section 68 of the Companies Act 2016, the Annual Return is generally lodged within 30 days of the incorporation anniversary, unless an extension is approved. Under Section 259, financial statements for a private company are generally lodged within 30 days after circulation to members, unless an extension is approved. These are recurring annual costs, every single year the company exists.
Do you need to pay for an auditor every year?
This depends on your revenue. It’s one of the biggest variable costs in running a Sdn Bhd, and auditor fees vary widely based on company size and turnover.
Not every Sdn Bhd needs to pay for an audit. Under Section 267(2) of the Companies Act 2016, qualifying companies can file Unaudited Financial Statements (UAFS) instead of a full audit, if revenue stays under a phased threshold sustained over the current and prior two financial years. If your company qualifies, you still need proper accounting records and still need to prepare and lodge financial statements; you simply avoid the auditor’s fee. Audit exemption doesn’t remove your need for a company secretary or your filing obligations.
What does it cost if you’re late on compliance?
Stepping back from setup and annual costs, there’s a cost category many founders don’t budget for: the cost of missing a deadline. Late submission carries two separate kinds of financial exposure.
First, SSM charges administrative penalties for late lodgement of documents. Second, separate from that penalty, the Companies Act 2016 allows for court fines upon conviction. Under Section 68, a default on the Annual Return may result in a fine of up to RM50,000 against the company and the officers who contravene the section, upon conviction. Under Section 259, failure to lodge financial statements may result in a fine of up to RM50,000 against the responsible officer upon conviction. Under Section 588, failing to maintain a company secretary may result in a fine of up to RM50,000 upon conviction for the company, and a fine of up to RM50,000, imprisonment of up to three years, or both, for an individual.
These are maximum fines a court may impose upon conviction, not automatic charges. Filing on time is cheaper than paying penalties and fines later. Your Annual Return, BO and financial statement deadlines continue to run regardless of staffing changes or delays in appointing a secretary.
Frequently Asked Questions
Is RM1,000 the total cost to register a company online in Malaysia?
No. RM1,000 covers only the SSM incorporation fee, with a further RM50 per 30 days if you reserve a company name separately. Your full first-year cost also includes a company secretary subscription, accounting support, and potentially an auditor, depending on your revenue.
Can I complete online company registration in Malaysia without a lawyer?
Yes. Incorporation can be done directly through SSM’s MyCoID portal or through a company secretary who handles the filing on your behalf. A lawyer is not required for standard Sdn Bhd incorporation.
Does paid-up capital need to be paid in cash immediately?
Paid-up capital reflects what shareholders have actually contributed in exchange for shares. The legal minimum is RM1, though banks and licensing bodies may expect more in practice.
What happens if I don’t appoint a company secretary in time?
You must appoint one within 30 days of incorporation (Section 236). The company and its directors who fail to do so commit an offence under Section 235(4) of the Companies Act 2016. Your Annual Return, BO and financial statement deadlines continue running; a missing secretary doesn’t pause them.
Do I need an auditor if my company qualifies for audit exemption?
No, if you meet SSM’s phased revenue thresholds sustained over the current and prior two financial years under Section 267(2) of the Companies Act 2016, you can file Unaudited Financial Statements instead. You still need proper accounting records and a company secretary.
Is it cheaper to register a company online in Malaysia than through a traditional process?
The SSM statutory fee is the same regardless of channel. What differs is the service fee charged by whoever helps you file, and how quickly the process completes.
ABOUT BOSS BOLEH
Boss Boleh is a licensed company secretary and online incorporation platform built for first-time Sdn Bhd owners. Beyond company secretarial work, it also offers a one-stop compliance solution for entrepreneurs, including accounting, tax planning and tax filing services. We handle Annual Return and Beneficial Owner submissions to SSM, provide standard corporate resolutions in subscription plans, support audit exemption filings, and complete incorporation in 2 working days, with company bank account opening done online or with a banker visiting you, with no branch visit required.
References
Companies Act 2016 (Act 777), sections 58, 68, 235, 236, 240, 241, 259, 267, and 588.
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