# Glossary of Malaysian company terms — Robo Company Secretary URL: https://robocompanysecretary.com/glossary/ ## Malaysian company terms, in plain words Short definitions of the words you will meet when you start and run a company in Malaysia. General information, not advice. Sdn Bhd (private limited company) A private company limited by shares under the Companies Act 2016. "Sdn Bhd" stands for Sendirian Berhad. The owners' liability is limited to their shares; it needs at least one director who ordinarily lives in Malaysia and at least one shareholder. Full answer → SSM Suruhanjaya Syarikat Malaysia, the Companies Commission of Malaysia. It registers companies, businesses and PLTs and receives their yearly filings. Superform The application filed with SSM to incorporate a company, giving its name, directors, shareholders, registered office and business codes. MSIC code Malaysia Standard Industrial Classification code: the number that describes a business activity, chosen when the company is registered. Company secretary The officer every Malaysian company must appoint within 30 days of incorporation. The secretary keeps the statutory records, files with SSM and advises the board on company law, and must be qualified under section 241 of the Companies Act 2016. Full answer → SSM practising certificate The certificate SSM issues to a qualified person so that they may act as a company secretary. You can check a secretary's certificate with SSM. Full answer → Registered office The official address of a company in Malaysia, where its statutory records are kept and where official letters are sent. Director A person who manages the company. A Malaysian company needs at least one director whose principal place of residence is in Malaysia. Ordinarily resident Having your principal place of residence in Malaysia. It is about where you actually live, not your citizenship. Nominee resident director A director who lives in Malaysia and is appointed so that a foreign-owned company meets the resident-director rule, until the owners have their own resident director. Beneficial owner A person who ultimately owns or controls a company, directly or through others. Companies keep a register of beneficial owners and report it to SSM. Annual return The yearly filing with SSM that confirms a company's details. It is due within 30 days of the anniversary of incorporation. Financial statements A company's yearly accounts. They are sent to the shareholders within six months of the financial year-end and lodged with SSM within 30 days after that. The directors are responsible for them. Statutory audit An independent check of the financial statements by a licensed auditor. Some small or dormant private companies qualify for exemption under SSM's rules. Dormant company A company with no business activity. It must still file its annual return, financial statements and tax return. LHDN Lembaga Hasil Dalam Negeri, the Inland Revenue Board of Malaysia, which collects income tax. MyTax LHDN's online portal, where tax returns such as Form C are submitted. Form C A company's income tax return to LHDN, due within seven months after the end of its financial year. CP204 A company's estimate of the tax it will pay for the year, paid to LHDN in monthly instalments. e-Invoice (e-Invois) LHDN's electronic invoicing system, phased in by business size. SST Sales and Service Tax. A business registers once its taxable sales pass the threshold for its activity. Full answer → Sole proprietorship (enterprise) A business owned by one person and registered with SSM under the Registration of Businesses Act 1956. Only for Malaysian citizens and permanent residents; the owner is personally liable for its debts. Tax is filed on Form B. Partnership A business owned by two or more people and registered with SSM. The partners are personally liable; the partnership files Form P. PLT (limited liability partnership) Perkongsian Liabiliti Terhad, a partnership under the Limited Liability Partnerships Act 2012 whose partners have limited liability. It files Form PT and a yearly declaration with SSM. Constitution A company's own rules, adopted on top of the Companies Act 2016. A company may choose to have one. XBRL A machine-readable format for financial statements that SSM requires certain companies to use when they lodge their accounts. Strike-off Removing a company from SSM's register, usually when it has stopped doing business and has no debts.