TRANSCENDING BOUNDARIES

TOWARDS BUSINESS

TRANSFORMATION

DATO’ AZMI BIN ARIFFIN

CHIEF EXECUTIVE OFFICER

COMPANIES COMMISSION OF MALAYSIA

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CORPORATE REGISTERS FORUM 2011, SINGAPORE

As at 31 March 2011, the total number of companies incorporated and business registered are:

Foreign4,384

Local933,236

937,620

TOTAL NUMBER OF COMPANIES AND BUSINESSES

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4,434,897

INITIATIVES IN SSM’S BUSINESS PROCESS RE-ENGINEERING

YEAR SSM’s BUSINESS PROCESS IMPROVEMENTS

June 2005 Full implementation of the new Companies and BusinessSystem (CBSROC & CBSROB)

End 2005 Commencement of Business Process Re-engineering ofSSM’s public delivery system

May 2006 Introduction of SSM e-Info

March 2007 Official Announcement of the SSM’s New Clients’ Charter

May 2007 SSM Business e-Lodgement rolled out

November 2007 SSM Companies e-Lodgement rolled out

February 2010 Launch of MyCoID Phase 1

April 2010 Introduction of 1 Day Incorporation process in response toWorld Bank Starting a Business Report

February 2011 Roll-out of MyCoID Phase 2

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4

SSM’S e-INITIATIVES

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e-INFO INTERNATIONAL VISITORS 2010

Country Visits Country Visits Country Visits Country Visits

Malaysia 1,267,140 Pakistan 544 Sweden 83 Kuwait 17

Singapore 26,127 Egypt 974 Netherlands 450 Bangladesh 80

USA 4,959 Denmark 1,685 Saudi Arabia 170 Argentina 10

UK 4,547 Germany 476 Cyprus 104 Bulgaria 120

India 3,979 France 561 Brunei 187 Peru 6

Hong Kong 6,347 Indonesia 1,761 UAE 185 Belgium 51

Philippines 1,183 Thailand 498 Taiwan 359 Iran 264

Australia 3,629 Italy 198 Romania 353 Vietnam 171

Japan 2,113 South Africa 125 Switzerland 213 Brazil 59

China 2,351 South Korea 454 Mexico 15 Norway 75

Spain 115 Canada 634 Czech Republic 64 Monaco 7

New Zealand 255 Ireland/ Iceland 107 Luxembourg 16 Cayman Island 9

Country Visits Country Visits Country Visits Country Visits

Malaysia 297,335 Pakistan 108 Sweden 27 Kuwait 5

Singapore 5,278 Egypt 151 Netherlands 139 Bangladesh 42

USA 1,201 Denmark 707 Saudi Arabia 35 Argentina 2

UK 1,045 Germany 139 Cyprus 12 Bulgaria 14

India 776 France 83 Brunei 31 Peru 4

Hong Kong 2,122 Indonesia 100 UAE 53 Belgium 24

Philippines 329 Thailand 127 Taiwan 49 Iran 28

Australia 640 Italy 82 Romania 138 Vietnam 71

Japan 292 South Africa 41 Switzerland 53 Brazil 15

China 734 South Korea 90 Mexico Norway

Spain 14 Canada 179 Czech Republic 16 Monaco 4

New Zealand 47 Ireland/ Iceland 39 Luxembourg 1

e-INFO INTERNATIONAL VISITORS 2011

MILESTONES

Activity After Before

BUSINESS REGISTRATION

Approval of business name 1 hour 3 days

New business registration 1 hour 3 days

Renewal of business registration 15 mins 1 hour

Registration for termination of business 15 mins 1 day

Registration of changes in registered particulars of business 1 hour 1 day

COMPANY REGISTRATION

Approval of company name 1 day 5 days

Incorporation of a new company 1 day 5 days

Conversion of status 1 day 5 days

Change of company name 1 day 5 days

Commencement of business for public companies 1 day 5 days

Registration of charge 2 days 5 days

Approval of a trust deed 5 days 14 days

Registration of prospectus 3 days 14 days

Supply company/business information via computer printout 30 mins 1 hour

Uncertified copy of company documents 30 mins 1 hour

Certified copy of company documents 1 hour 3 hours

Note: Time taken begins from the moment payment is received until the certificate is issued.

• SSM’s New Client Charter in March 2007

WO

RK

PR

OC

ESSE

S

Work process re-engineering

7

SSM’S REFORM INITIATIVES

TOWARDS THE 1 DAY

INCORPORATION

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1. Name search and approval

2. Lodgement of documents

3. Purchase of statutory books and share certs

4. Make a company seal

5. Stamping of M&A

6. Register with IRB

7. Register with EPF

8. Register with SOCSO

9. Notify IRB of employment of workers

SSM’s processes

External processes

1. Name search and approval

2. Lodgement of documents

5. Purchase of statutory books and share certs

4. Make a company seal

3. Stamping of M&A* The purchase of revenue

stamp and cancellation of such stamp can now be done in SSM

6. Register with IRB

7. Register with EPF

8. Register with SOCSO

9. Notify IRB of employment of workers

Process 1

Process 2

Process 3

I. IDENTIFY & CLUSTER II. RECONCILE III. OUTCOME FOR DOING BUSINESS 2011

SSM as a ‘One-Stop Centre’

MyForm* Initiative by MAMPU

Further reconciliation* In Kuala Lumpur

and Klang Valley, the company seal can be obtained on the same day

THE BUSINESS PROCESS RE-ENGINEERING

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• Memorandum & Articles of Association

Under the initiatives introduced on 1 April 2010, stamping of the M&A,purchase and cancelling of revenue stamps now done at SSM uponsubmission of incorporation documents.

Amendments made to Schedule 2 of the Stamp Act 1949 whereby theRegistrar of Companies was conferred the power to cancel the revenuestamps beginning 1 January 2010. SSM was also granted the permission bythe Minister of Finance to make available such stamps at its premisesbeginning 1 April 2010.

THE BUSINESS PROCESS RE-ENGINEERING

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• Purchase of statutory books, share certificates & company seal

Not part of incorporation procedure but SSM facilitative to needs of users.

Ordered simultaneously when submitting incorporation documents.

Sold in a package at RM100.

Receive same day with certificate of incorporation.

• Determining the availability of theproposed company’s name

• Stamping of Memorandum and Articlesof Association (M&A)

• Filing the necessary documents within 3months after the name reservation

• Making a company seal

• Purchasing statutory books and sharecertificates

SINGLE COUNTER INTERACTION

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Consolidated

into 1

process

through the

“Single

Counter

Interaction”

• Registration with the income taxdepartment (IRB)

• Registration with the EmploymentProvident Fund (EPF)

• Register with the Social SecurityOrganization (SOCSO)

• Notifying the Director General of IRBof the employment of workers

SINGLE WINDOW INTERACTION - MyFORM

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Consolidated

into 1

process

through the

“Single

Window

Interaction”

via MyForm

MILESTONE

COUNTERApproval of name + payment

DATA ENTRY

APPROVAL

SIGNING OF CERTIFICATE

ADVISORY COUNTER

1

ADVISORY COUNTER

2

ISLAND 1

COLLECTION OF CERTIFICATE

COUNTERApproval of name + payment

DATA ENTRY

APPROVAL

ISLAND 213

SSM’S NEW CLIENTS CHARTER & ITS IMPLEMENTATION CONCEPT

2009

(9 Procedures 11 Days)

2010

(3 Procedures 3 Days)

2011

(1 Procedure 1 Day)

Procedures Day Procedures Day Procedures Day

1. Determining the availability of the company’s name

1 1. Incorporation process• Consolidation of name approval,, stamping of

M&A and lodgement of documents

• Business process re-engineering

• Outcome: Restructuring of SSM Clients’ Charter

1 1. Incorporation process and simultaneous automatic registration with the IRB, EPF and SOCSO

1

2. Stamping of M&A 1 2. Purchase of company seal, statutory books and share certificates

• All items to be sold at SSM’s premises/on-line

1

3. Filing of the necessary documents within 3 months after the name reservation

2 3. Online registration via MyGovXchange with the IRB, EPF and SOCSO

• MAMPU’s project

1

4. Making a company seal 1

5. Purchasing statutory books & share certificates

2

6. Registration with IRB 1

7. Registration with EPF 1

8. Registration with SOCSO 1

9. Notifying the DG of IRB for employment of workers

1

THE 3-STAGE EVOLUTION OF IMPROVEMENTS IN ‘STARTING A BUSINESS’

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Implementation of 1 Day

Incorporation (Over the

Counter)

Implementation of MyCoID Phase 2 on 16 February 2011

THE SINGLE PUSH FOR

SIMULTANEOUS REGISTRATION

(www.ssm-mycoid.com.my)

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MALAYSIA CORPORATE IDENTITY NUMBER

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3SINGLE SOURCE OF REFERENCE

Single identity number

Efficiency in transactions

Inter-agency verification

Consolidation of incorporation process

Improves public service delivery system

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4BENEFITS

AG

EN

CI

ES

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CONCEPT

Name Search IncorporationAuto Submission

to Agencies

Form 13A

Master Form

M&A

Form 6

Form 48A

Form 9

First Form(Form 24, 44 & 49)

Super Form

Incorporation &

First Forms

Central DatabaseBasic Search

Extended Search

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User Registration

Individual

Company

Secretary

Firm/Company

MAIN FUNCTIONS

Portal

User Authentication

Super Form & Callback Function

Digital Forms

MyID @ NRD*

Payment Gateway

BillingLogs, Audit,

Reports

SMS Gateway / Email

New RegistrationC

en

tral Datab

ase

Name Search

Form 13A

Master Form

M&A

Form 6

Form 48A

Form 9

First Form(Form 24, 44 & 49)

21* NRD – National Registration Department

GATEWAY OVERVIEW

Browser

Credit Card /

Internet

Banking

Active Email/

Cellular

number

• Internet Explorer

• Mozilla

• Safari

• Google Chrome

• Internet

Connection

• Mastercard

• Visa

• Maybank2u

• Prepaid

• POP3

(Gmail, Yahoo,

Hotmail, etc.)

• IMAP, HTTP, ISP

• Cellular number

Viewer

Secured

Payment

• Acrobat Reader

(PDF)

• SSL certificate

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BASIC REQUIREMENTS

IndividualCompany

SecretariesCompany / Firm

Sign Up Online

Sign Up Online

OnlineNotification

OnlineNotification

Counter Verification(One Time)

OnlineActivation

Sign Up Online

OnlineNotification

OnlineActivation

OnlineActivation

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REGISTRATION

Intelligent Search Engine

Registered Names

Reserved Names

Gazetted Names

Controlled Words

Offensive Words

Special Names

AvailableAuto Rejected May be Rejected

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NAME SEARCH

Master Form

Registered Address

Business Codes

Business Description

SharesValue/Uni

t

Max Directors

No of Employee

Directors Promoters

Company Secretaries Witness

Form 13A

Form 6M&A Form 48A

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INCORPORATION

Form 6

Form 48A

M&A

SSM A

pp

roval

Form 6Form 48A

M&A

Form 8/9

SSM Approver

Company Secretary

E-Info

SSM

Other sub-

systems

26

INCORPORATION PROCESS

Superform

Master Form

M&A Form 6 Form 48A

Form 9First Form(Form 24, 44 & 49)

Record Updated

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UPDATES TO AGENCIES

Special Features Introduced1. Auto validation against License Secretary Registration2. Name Search :

a. Public notified instantly if name is not availableb. Validation against:

i. Gazetted wordsii. Restricted wordsiii. Similar nameiv. Reserved name

3. Ready template for Memorandum & Articles (Omission of handwritten signature)

4. Package (Stamping, Company Seal, Share Cert, Statutory Book)5. Master Form6. Auto transfer/register with Agencies7. Email and SMS notifications

28HOW WE DO IT DIFFERENTLY

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• Moving forward, this year, more agencies are expectedto come on board MyCoID

• More services will be added to MyCoID

MyCoID – MOVING FORWARD

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SSM’S AWARENESS INITIATIVES

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SSM has carried out various initiatives to create awareness on the reforms and innovations in

SSM’s work and business processes:

Awareness Initiatives

Road shows/ Advocacy

Media Engagements

SSM’s Training Programmes

Existing Stakeholders’ Engagement

Sessions

Corporate Practice Consultative Forum (CPCF) & AnnualDialogue – attended by professional bodies & membersof the corporate & business community

Conducted by COMTRAC:(a) Briefing on e-Lodgement, 1 Day Incorporation &

MyCoID for company secretaries(b) Corporate Directors Training Programme (CDTP)(c) Licensed Secretaries Training Programme (LSTP)

Electronic & print media – interviews, advertisements,newspaper articles, press releases.

Most recent:(a) SSM’s Awareness Programme titled “Supporting

the National Agenda: The SSM Reform Initiativesin Starting a Business” held on 23 Feb 2011 at SSM

(b) World Bank visit held on 16 & 17 March 2011(c) Engagement Session with Stakeholders on 18 April

2011(d) Billboards at strategic locations

THANK YOU