One Person Company (OPC)

Have you heard of One Person Company (OPC)? And what is OPC?

According to Section 196 of the Companies Act 2016, in the case of a private company, a director (one person) can incorporate a company (OPC) in Malaysia instead of a minimum of two directors as compared previously provided he must ordinarily reside in Malaysia by having a principal place of residence in Malaysia. There is no par value, no authorised capital, no share certificate and no common seal needed under the new Companies Act.

As an individual, you may form a business through sole proprietorship which the liability is tied with your asset. However, forming a private company is a better solution because the liability only lies within the company instead of the individual.

Besides limited liability status, a company is required to fully comply with the provisions of the Companies Act 2016. The Companies Act provides a more structured approach which codifies the requirements of establishing, managing and dissolving a company. Such requirements include the keeping, preparing and auditing of its financial statements and other corporate governance provisions (disclosures, rules of conflict, reporting, etc.) contained in the Companies Act 2016. Therefore, running a business as a company can be said to be more credible because of such assurance which is required under the law. 

What should you do if you wish to form an OPC?

Fret not! Follow the easy steps below to start the journey with us now!

First, give us a nice name of your OPC to reserve the name before going to the incorporation process. E.g. Happy Go Lucky Sdn. Bhd.

Second, once your OPC name is approved by SSM, you need to provide us the following information…

• Principal business activity (e.g. Selling property, manufacturing of goods, construction, e-commerce)
• Information of Director/Shareholder (can be the same person) 
• Amount of paid up capital (how much capital to be injected to the company)

Next, submit your application with payment of RM1,010 to SSM and wait for the approval by SSM! 

Any more queries, please do not hesitate to call us now!