1. What Is Authorised Capital Increase Fee?

The Authorised Capital Increase Fee is a mandatory payment to the Companies Commission of Malaysia (SSM) when a company increases its authorised share capital. This fee is based on a tiered structure determined by the total authorised capital amount after the increase.

2. How Does The Fee Calculation Work?

The fee calculation follows the SSM's prescribed fee structure:

Explanation: The fee is calculated based on the total authorised capital after the proposed increase, not just on the increase amount itself.

3. Importance Of Proper Capital Registration

Details: Properly registering capital increases with SSM is crucial for maintaining company compliance, legal standing, and the ability to issue new shares. Failure to properly register capital changes can result in penalties and legal complications.

4. Using The Calculator

Tips: Enter your current authorised capital amount and the proposed increase amount in Malaysian Ringgit (RM). The calculator will determine the appropriate SSM registration fee based on the new total authorised capital amount.

5. Frequently Asked Questions (FAQ)

Q1: When is this fee payable?
A: This fee is payable to SSM when submitting Form 10 for increase in authorised share capital.

Q2: Are there additional fees besides this registration fee?
A: Yes, there may be additional fees for late submissions, stamp duties, and professional fees if using company secretarial services.

Q3: How often can a company increase its authorised capital?
A: A company can increase its authorised capital as often as needed, provided it follows proper procedures and obtains shareholder approval when required.

Q4: Is this fee tax deductible?
A: Generally, registration fees for capital increases are considered capital expenditures and are not immediately tax deductible.

Q5: What happens if I don't pay the correct fee?
A: SSM may reject the application or impose penalties for incorrect fee payments, which may delay the capital increase process.