Companies Bill 2015 to take effect next year


KUALA LUMPUR: The Companies Bill 2015, which will replace the Companies Act 1965, will be implemented in stages from next year.

Companies Commission of Malaysia (SSM) chief executive officer Datuk Zahrah Abd Wahab Fenner said that companies would see some changes in the enforcement as early as in the first quarter.

"Right now the Bill is awaiting the consent of the Yang di-Pertuan Agong Tuanku Abdul Halim Mu'adzam Shah.

"Once we obtain the nod, SSM will enforce it in stages. We are currently working out the details, including the fee structure," she told reporters at the SSM National Conference 2016 in Kuala Lumpur on Tuesday.

The Companies Bill 2015, which is said to be a more modern set of legislation, places emphasis on better governance and internal controls in business operations.

Zahrah said under the new legislation, companies would have to comply with, among others, new rules for better business reporting and improved auditing and acounting.

The Companies Bill 2015 was passed by Parliament on April 28, 2016.

She said the new legislation would encourage more young entrepreneurs to start their own businesses as starting a business would be made simpler, with the removal of multiple forms and the introduction of a super-form.

"Under the 2015 Bill, new set-ups will not be required to have the Memorandum and Articles of Association and common seal at the point of registration. 

"A flat incorporation fee will be introduced, depending on the type of companies registered. This will translate into lower cost in starting a business," she said.

Zahrah urged young entrepreneurs, especially those operating via online, to also register their businesses.

They will be fined RM50,000, or face a two-year jail or both, if they fail to do so, she said. - Bernama

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