FAQ
Secretarial
Can a company use an old name to incorporate a new company?
A company cannot use the old name of another to incorporate a new company.
How long can an approved company name be reserved?
An approved company name can be reserved for three months pending incorporation.
How long does it take to process a certificate of incorporation?
Upon compliance, certificate of incorporation will be issued within 1 working day.
Is the appointment of Company Secretary mandatory?
Yes, and the office of secretary of a company shall not be left vacant for more than one month at any one time.
What conditions to be met if foreigners wish to form a company?
Foreigners who wish to form a company must be above 18 years of age and have a principal or only place of residence within Malaysia (Section 122 of the Company Act 1965).
What should I do if I want to form a company?
You need to
- think of a proposed name; preferably more than one in case the proposed name has been used by others;
- have at least two promoters who are individuals (subsequent transfer of shares to a corporation is possible);
- have at least two directors, who each has his principal or only place of residence within Malaysia;
- provide a brief description of the business activities that the new company will carry out;
- provide copy of IC/passport of the promoters and directors; and
- pay the incorporation fees quoted to you.
Taxation
Can I appoint any accountant to be my tax agent?
An accountant, or any person, who is not an approved tax agent under Section 153(3) of the Income Tax Act 1967 cannot act as your tax agent. He is also prohibited to hold himself out as tax consultant, tax adviser or any other like description.
Can I revise the income tax estimate of my company?
Yes, generally you can revise the estimate in the 6th or the 9th month of the basis period by using the Form CP204A. However, if you have failed to submit the CP204 form within the stipulated time, you are not allowed to submit a CP204A for revision. You may submit an appeal letter instead and it is subject to the IRB’s approval.
How long should I keep my documents for income tax purposes?
Seven years after the end of the year in which the income tax return is furnished.
Example 1:
Mr. X submitted his YA2005 income tax return on 16 July 2009, he must keep sufficient documents that relate to his chargeable income and tax payable of YA2005 until 31 December 2016.
How to make an estimate of income tax payable?
With effect from the year of assessment 2006, the estimate of tax payable for a current year by the company should not be less than 85% of the revised estimate of tax payable for the immediate preceding year of assessment. If there is no revised estimate furnished, current year tax estimate should not be less than 85% of the estimated tax payable for the immediate preceding year of assessment.
A company (other than SME) which has just commenced business can estimate the tax payable for the first year of assessment based on estimated company profits. The estimated tax payable for the first year will be the basis for the tax estimate for the next year of assessment.
Example 1:
ABC Sdn Bhd has furnished estimate for the year of assessment 2007 amounting to RM50,000. In the 6th / 9th month, the company revises the tax estimate to RM100,000. The revision is agreed by IRBM.
Therefore for year assessment 2008, ABC Sdn Bhd has to furnish a tax estimate of at least RM85,000 (85% from the revised estimate of the year assessment 2007).
When to submit a CP204 tax estimate form?
An existing company is required to furnish estimation of tax payable not later than 30 days before the beginning of the basis period for a year of assessment. However, a company (other than SME) that has just commenced business has to furnish the estimate of tax payable within 3 months from the date the company commences business.
Example 1:
The basis period for company ABC Sdn. Bhd. is from 01/07/2008 to 30/06/2009 for the year of assessment 2009.
The company has to submit CP204 form not later than 31/05/2008 (30 days before the beginning of the basis period).
Example 2:
DEF Sdn. Bhd was incorporated on 25/02/2009. The company commenced its business on 01/04/2009 and the first financial accounts were prepared up to 31/12/2009.
The company has to submit CP204 form not later than 30/06/2009 (3 months from the date the company commenced its business).
Effective from year of assessment 2008, a SME (company with a paid-up capital in respect of ordinary shares of RM2.5 million and below at the beginning of the basis period for the relevant years of assessment) is not required to furnish an estimate of tax payable or make instalment payments for a period of 2 years beginning from the year of assessment in which the SME commences operations.
Trade Mark Registration
What is the valid duration of a trade mark registration?
A trade mark once registered is valid for a period of seven years, and it may be renewed for a period of 14 years from the expiry date of its original registration, or of its last renewal of registration.
Who can apply for registration of trade marks?
An individual, a company or a firm can make an application to register a trade mark. However, the trade mark chosen must not be identical to any registered trade mark of others that has been entered in the Register in respect of the same goods or description of goods, or nearly resemble such other trade marks which may cause confusion.
General
What is Employment Provident Fund (EPF)?
EPF is the abbreviation for Employees Provident Fund. EPF is commonly known in the Malay term as Kumpulan Wang Simpanan Pekerja (KWSP).
EPF is a compulsory savings scheme for employees in Malaysia. Its primary aim is to provide a measure of security for old age retirement to its members. It also provides supplementary benefits to members to utilize part of their savings for house ownership and other withdrawal schemes.
What is Social Security Organization (SOCSO)?
SOCSO is the abbreviation for Social Security Organization. It is commonly known in the Malay term as Pertubuhan Keselamatan Sosial (Perkeso).
The SOCSO provides social security protection to employees by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce the sufferings and to provide financial guarantees and protection to the family.
What payments are liable for EPF contribution?
Wages
All remuneration in the form of money paid to an employee under a contract of service or apprenticeship whether it was agreed to be paid monthly, weekly, daily or otherwise is regarded as wages. This includes bonus, commission or any allowance which an employer is required to pay irrespective of whether such a payment is paid under a contract of service or apprenticeship or others.
Examples of Payments Liable For EPF Contributions:
- Payment in lieu of service/apprenticeship
- Payment of unutilized annual leave and medical leave
- Bonus
- Allowance
- Commission
- Arrears of wages
- Maternity leave pay
- Study leave pay
- Payment for hall pay leave
- Director’s salary
- Other payments under a contract of service or otherwise
Examples of Payments Not Liable For EPF Contributions:
- Service charge
- Overtime payment
- Gratuity
- Director’s Fees
- Retirement benefits
- Retrenchment, lay-off or termination benefits
- Any traveling allowance or the value of any traveling concession
- Payment in lieu of service termination notice
- Any other remuneration or payment exempted by the Minister
Note: The list above is not exhaustive. If you have any queries, please contact the nearest EPF office.
When should an employer register with EPF?
According to Section 41 (1) of the EPF Act 1991, an employer must register with the EPF within 7 days from the date the employer becomes liable to contribute, that is as soon as an employee is hired.
AaronDanny
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