# Formation Document for Malaysia > Use this template to create a Formation Document that complies with your chosen governing law **Document type:** Formation Document **Category:** other **Jurisdiction:** Malaysia **Governing law:** United States **Last updated:** 2026-06-17 ## What is a Formation Document? A Formation Document officially brings your business to life in Malaysia's legal system. It includes essential papers like the Constitution, Memorandum of Association, and Form Section 14 that you submit to the Companies Commission of Malaysia (SSM) when registering a new company. This foundational paperwork defines your company's basic structure, business activities, and shareholder relationships. It's legally required under the Companies Act 2016 and serves as your organization's birth certificate - establishing everything from your company name and address to share capital and director details. You'll need these documents for opening bank accounts, signing contracts, and proving your company's legitimate existence. ## When should you use a Formation Document? You need Formation Documents ready before registering any new business entity with SSM in Malaysia. This paperwork becomes essential when starting a private limited company (Sdn Bhd), public company (Bhd), or partnership. It's also required when converting a sole proprietorship into a registered company. These documents prove vital during major business milestones: securing loans, bringing in new investors, expanding to new locations, or bidding on government contracts. Many entrepreneurs prepare Formation Documents early in their planning phase to avoid delays when opportunities arise. Banks and potential business partners often request these papers to verify your company's legal status and operational scope. ## What are the different types of Formation Document? - The basic Formation Document package includes a Constitution (replaced the old Memorandum and Articles of Association), which outlines your company's internal rules and shareholder rights - Form Section 14 serves as your official company incorporation application with SSM, detailing basic company information - A Statement of Compliance confirms your company meets all legal requirements under the Companies Act 2016 - For specialized businesses like financial services or manufacturing, additional industry-specific declarations may be required - Foreign-owned companies need extra documentation proving overseas ownership and local compliance ## Who should typically use a Formation Document? - **Company Founders**: Must prepare and sign Formation Documents when establishing their business entity, defining their ownership stakes and roles - **Company Secretary**: Handles document preparation, submission to SSM, and ensures compliance with the Companies Act 2016 - **Legal Advisors**: Review and refine Formation Documents to protect client interests and ensure legal compliance - **Directors**: Sign and approve Formation Documents, becoming legally responsible for company governance - **Shareholders**: Bound by the terms outlined in Formation Documents regarding their rights, voting powers, and profit-sharing arrangements ## How do you write a Formation Document? - **Company Details**: Gather proposed company name, business address, nature of business, and share capital structure - **Director Information**: Collect full names, IDs, residential addresses, and contact details of all directors - **Shareholder Data**: Prepare list of shareholders with their shareholding percentages and types of shares - **Business Structure**: Decide on company type (Sdn Bhd or Bhd) and internal management rules - **Document Generation**: Use our platform to create legally-compliant Formation Documents with all required elements - **Final Review**: Cross-check all information for accuracy before submission to SSM ## What should be included in a Formation Document? - **Company Name**: Full registered name with Sdn Bhd or Bhd designation, approved by SSM - **Business Objects**: Clear statement of permitted business activities and scope - **Share Capital**: Details of authorized capital, share classes, and rights attached - **Director Provisions**: Powers, duties, and appointment procedures for board members - **Shareholder Rights**: Voting procedures, dividend rights, and transfer restrictions - **General Meetings**: Rules for conducting AGMs and extraordinary meetings - **Company Secretary**: Appointment requirements and responsibilities - **Dissolution Clause**: Procedures for winding up the company ## What's the difference between a Formation Document and a Corporate Governance Document? Formation Documents differ significantly from a [Corporate Governance Document](https://www.genieai.co/en-my/template-type/corporate-governance-document) in their timing and purpose. While Formation Documents establish your company's legal existence and basic structure at inception, Corporate Governance Documents guide how your established company operates day-to-day. - **Creation vs Operation**: Formation Documents are required at company registration with SSM, while governance documents evolve as your business grows - **Legal Requirements**: Formation Documents are mandatory for company registration; governance documents are typically internal policies that vary by company size and industry - **Modification Process**: Changes to Formation Documents require formal SSM approval and shareholder consent; governance policies can be updated through board approval - **Scope**: Formation Documents outline fundamental company structure and rights; governance documents detail management procedures, controls, and decision-making processes ## Templates in this category - [Partnership Contract](https://www.genieai.co/en-my/template/partnership-contract) --- This is the Markdown representation of [https://www.genieai.co/en-my/template-type/formation-document](https://www.genieai.co/en-my/template-type/formation-document), provided for AI agents and crawlers. 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