Selecting & changing a company name.

Choosing the right company name in Malaysia is not only a strategic business decision but also a legal necessity. Under the Companies Act 2016 and the supervision of the Companies Commission of Malaysia (SSM), companies must comply with detailed naming conventions and restrictions. Whether forming a new entity or changing an existing name, businesses must follow guidelines on language, prohibited terms and name uniqueness, making compliance essential for avoiding rejection, delays or legal complications.

This article aims to provide a detailed exploration of the intricacies involved in choosing and altering company names within the Malaysian business landscape.

Legal framework for company names in Malaysia

The selection and registration of company names in Malaysia are governed by specific laws and regulations:

• The Companies Act 2016 provides the primary legal framework for company registration and naming in Malaysia
• The SSM is the regulatory body responsible for the registration and administration of companies, including the approval of company names.

Guidelines on company names

The SSM has published detailed guidelines on the selection and registration of company names, which must be adhered to by all businesses.

Requirements for a Malaysian company name

The general requirements for a company name in Malaysia are the following:

• A public company must end with Berhad or Bhd.
• A private company must end with Serdirian Berhad or Sdn Bhd.
• An unlimited company must end with Serdirian.
• The name must use the correct spelling and grammar.
• Mixing English and Bahasa Malaysia is only allowed if it can describe the business type and uses proper grammar.
• If the name is in another language other than English or Bahasa English, the meaning of the word must be given if a word is created or coined.
• The name is not offensive to the members of the public or blasphemous.
• The name does not resemble elements of religion.
• The company name must not use words that are too general, such as Technology Sdn. Bhd. or International Sdn. Bhd.
• Only the names of company directors who are listed on the registration application form can be used as company names.
• The use of symbols in a company name is limited to five symbols, which are:
  • & (including dan, and and N)
  • . (dot symbol)
  • – (hyphen symbol)
  • () (bracket symbol)
  • ’ (apostrophe symbol)

Company name restrictions

There are certain names and words that are prohibited from being used in a company name.

These names are:

• Names suggesting a connection with:
  • The members of the Royal family or including words such as Royal, King, Queen, Prince, Princess, Crown, Regent or Imperial
  • A State or Federal government department, statutory body, authority or government agency or a municipality or local authority, or including words such as Federal, State or National
  • Any ASEAN, Commonwealth or foreign government, the United Nations or any international organisation, or including words such as ASEAN, UNESCO, NATO, EEC or OPEC
  • Any political party, society, trade union, co-operative society or building society
• Names including any of the following words:

• Names that are translations of a company or a foreign company registered under the Companies Act or the same or similar to other companies registered under the Act
• Acronyms that may be confused with existing names:

Determining identical company names

According to the SSM’s Guidelines on Company Names, there are certain words that must be disregarded when determining whether a company name is identical to another company:

• The in the case that it is the first word of the name
• Sendirian, Sdn, Berhad, Bhd, PLT and Perkongsian Liabiliti Terhad
• Company, Corporation, Incorporated, Incorporation, Holding, Group and Malaysia, Consortium and Consolidated if they are at the end of the company name
• The plural version of the name
• Root words that carry the same meaning
• The type and case of letters, spacing and punctuation marks
• The symbol & and and

The reuse of a company name which has been dissolved through the act of striking off or court order/voluntary winding up is allowed if the name is available.

Changing a company name

The process of changing a company’s name can be completed by submitting an application through the SSM online system, with a fee of RM 50. This is typically handled by the company secretary. If the proposed name is approved, it will be reserved for 30 days from the date of approval.

Upon approval, a general meeting should be convened to confirm the name change, followed by the submission of relevant return to the SSM. The SSM will then issue a certificate of change of name, which officially confirms the change of the company’s name.

The company name may be in both English and Bahasa Malaysia, provided it adheres to proper grammar and accurately describes the business. Once a name that complies with the company name guidelines is selected, the reservation and usage of the name should proceed smoothly.

Conclusion

Selecting or changing a company name in Malaysia is a complex process that requires careful consideration of legal, cultural and strategic factors. A well-chosen name can be a valuable asset, contributing to brand recognition, customer loyalty and overall business success. Conversely, a poorly selected name or mismanaged name change can lead to legal complications, market confusion and missed opportunities.

As Malaysia continues to position itself as a key player in the global business arena, the importance of thoughtful and strategic company naming cannot be overstated. Companies must navigate the intricate balance between creativity and compliance, tradition and innovation, local appeal and global relevance.

How Acclime can help with company name selection and registration in Malaysia

Acclime offers complete support for company registration and corporate compliance. From company name reservation to post-registration filings, our team of experts can assist with everything from evaluating name availability to submitting applications through SSM’s online platform. By partnering with us, businesses can confidently navigate the naming process and ensure compliance with all regulatory requirements. Contact us to learn more about how we can support your company’s registration and name selection or change process.