Frequently Asked Questions

1. Company Name Search & Reservation – Conduct a name search via SSM.
2. Preparation of Incorporation Documents – Details of shareholders, directors, and company secretary.
3. Submission to SSM – Online submission via the MyCoID system.
4. Certificate of Incorporation Issued – Upon approval, SSM will issue the Notice of Registration.
5. Post-Incorporation Compliance – Opening a corporate bank account, obtaining necessary business licenses, and registering for tax compliance.

Your company name must:

• Be unique and not identical to existing registered names.
• Not contain prohibited or sensitive words unless with prior approval.
• Be meaningful and relevant to your business activities.
• You can perform a free name check on SSM’s website before submission.

• Ensure statutory compliance with the Companies Act 2016.
• Maintain proper financial records and annual returns.
• Act in the best interest of the company and avoid conflicts of interest.
• Ensure timely submission of corporate tax and SST/GST obligations.

Under Section 308(1) of the Companies Act, a company may apply for a strike-off if:

• It has ceased business for at least 12 months.
• It has no outstanding liabilities or debts.
• All shareholders and directors agree to the strike-off.

Yes. Every Sdn. Bhd. must appoint a qualified Company Secretary within 30 days of incorporation.

• All companies except exempted private companies (EPCs) must appoint an auditor.
• EPCs must fulfill specific conditions under the Companies Act 2016 to be audit-exempt.

A tax audit is conducted by the Inland Revenue Board of Malaysia (LHDN) to verify whether a company has complied with tax laws and correctly reported income and expenses.

• 17% on the first RM600,000 for SMEs with paid-up capital < RM2.5 million.
• 24% on taxable income exceeding RM600,000.

An E-Invoice is a structured, machine-readable digital invoice required for all business transactions in Malaysia. It must be submitted in XML or JSON format via the MyInvois Portal or API integration.

All businesses operating in Malaysia, including SMEs and foreign businesses, must implement E-Invoicing based on a phased timeline.

Update: As of February 2025, businesses with an annual turnover of RM150,000 – RM500,000 have been given a six-month extension before mandatory E-Invoice implementation on 1 January 2026. Businesses with turnover below RM150,000 remain exempt.

You can issue an E-Invoice through:

• MyInvois Portal – Suitable for small businesses.
• API Integration – For businesses with high transaction volumes.
• Each E-Invoice is validated by IRBM (LHDN) and assigned a Unique Identifier Number (UIN).

Failure to comply with E-Invoice requirements can result in:

• Fines of RM200 – RM20,000 per violation.
• Imprisonment up to 6 months or both.

Yes, businesses can issue monthly consolidated E-Invoices for transactions where the buyer does not require an individual invoice.

• Within 72 hours: Cancellation is allowed.
• After 72 hours: A credit note, debit note, or refund note E-Invoice must be issued to correct errors.

Yes.

• For imported goods, self-billed E-Invoices must be issued within 2 months of customs clearance.
• For imported services, self-billed E-Invoices must be issued within the month following payment or receipt of invoice.

• Businesses with annual turnover below RM150,000 are exempted from issuing E-Invoices.
• Businesses with turnover between RM150,000 and RM500,000 must implement E-Invoicing from 1 January 2026.
• Businesses exceeding RM500,000 in annual turnover must follow the mandatory phased timeline.

• Cross-border transactions require E-Invoices.
• If the foreign buyer has no Malaysian Tax Identification Number (TIN), a general TIN (“EI00000000020”) must be used.

IRBM ensures:

• ISO 27001 security standards compliance.
• Data encryption to prevent unauthorized access.
• Regular audits to monitor data privacy and security.

To ease the transition, businesses have a 6-month grace period before full enforcement begins.

This additional transition period is designed to help MSMEs adapt to the new E-Invoicing system, particularly those unfamiliar with digital invoicing processes.

You can contact:

• LHDN MyInvois Help Desk – 03-8682 8000 (24/7 support)
• Email: myinvois@hasil.gov.my
• Live Chat: Available on LHDN Official Portal
• SDK & API Integration Guide: https://sdk.myinvois.hasil.gov.my

Yes, tax deductions of up to RM50,000 are available for MSMEs to cover consultation fees related to E-Invoice implementation (valid until 2027).