Malaysia is one of Southeast Asia’s top business hubs, attracting foreign investors with its strategic location, business-friendly policies, and growing economy. If you’re a foreigner looking to establish a company here, understanding the Malaysia company incorporation process is crucial.
This guide breaks down the company setup in Malaysia, covering legal requirements, registration steps, and the role of company secretary services Malaysia to help ensure compliance.
Why Choose Malaysia for Business?
Before diving into the registration process, let’s explore why Malaysia is an excellent choice for business owners:
✅ Strategic Location – Positioned in the heart of Asia, making it a gateway to ASEAN markets.
✅ Business-Friendly Policies – Malaysia welcomes foreign investments with minimal restrictions.
✅ Competitive Costs – Lower operational expenses compared to neighboring countries like Singapore.
✅ Tax Incentives – Various tax exemptions and incentives are available for foreign investors.
DSY Advisory made the entire company incorporation process so smooth and hassle-free. As a foreign entrepreneur, I was initially overwhelmed by Malaysia’s business regulations, but their team guided me step by step. Within days, my company was registered and ready to go! Highly recommended for anyone looking to start a business in Malaysia.
Jeff Cen – Director of HorizonEase Sdn Bhd
Step 1: Choose the Right Business Structure
Foreign entrepreneurs must decide on a suitable business entity before registering their company. Here are the most common types:
- Private Limited Company (Sdn. Bhd.) – The most preferred choice for foreigners.
- Representative Office – Ideal for market research without direct business operations.
- Branch Office – An extension of a foreign parent company with limited operations.
- Sole Proprietorship or Partnership – Restricted for foreigners.
For most investors, setting up an Sdn. Bhd. is the best option due to its limited liability and full foreign ownership in certain industries.
Step 2: Meet the Key Requirements
To ensure a smooth Malaysia company incorporation, you’ll need to fulfill the following requirements:
✅ 1. Minimum Shareholder(s) and Director(s)
- At least one director who is a resident of Malaysia.
- Foreigners can own 100% of the shares in certain business sectors.
✅ 2. Appoint a Company Secretary
- Engaging company secretary services Malaysia is mandatory within 30 days of incorporation.
- The secretary must be a licensed professional registered with the Malaysian Companies Commission (SSM).
✅ 3. Minimum Paid-Up Capital
- The minimum paid-up capital starts at RM1.
- Some industries (such as retail or trading) may require a higher capital investment.
✅ 4. Registered Business Address
- Your company must have a physical address in Malaysia (not a P.O. Box).
✅ 5. Industry-Specific Licenses
- Some businesses (e.g., F&B, finance, and education) require additional business licenses.
The Companies Commission of Malaysia (SSM) oversees company registration. Follow these steps to complete your company setup in Malaysia:
1. Name Search & Reservation
- Use the MyCoID system to check for name availability.
- The name must not be identical to an existing company.
- A reservation costs RM50 per name and lasts for 30 days.
2. Submit Incorporation Documents
Prepare and submit the following to SSM:
✅ Company Constitution (optional but recommended)
✅ Identity details of directors and shareholders
✅ Declaration of compliance by the company secretary
3. Obtain Certificate of Incorporation
- Upon approval, SSM issues a Certificate of Incorporation.
- Your business is now legally recognized in Malaysia! 🎉
Step 4: Post-Incorporation Essentials
How Company Secretary Services Malaysia Can Help
A company secretary plays a crucial role in managing your compliance requirements. Here’s why you need one:
✅ Handles company registration & documentation
✅ Ensures SSM compliance and annual filings
✅ Manages shareholder and director records
✅ Advises on legal and corporate governance matters
Many companies outsource to professional company secretary services Malaysia to avoid legal complications.
After completing Malaysia company incorporation, you must fulfill a few more legal obligations:
📌 Open a Corporate Bank Account
- Required for business transactions.
- Some banks may require a minimum deposit and proof of local operations.
📌 Register for Taxes & EPF
- Obtain a Tax Identification Number (TIN) from the Inland Revenue Board (LHDN).
- Register for Goods & Services Tax (GST) (if applicable).
- If hiring employees, register for Employees Provident Fund (EPF) and Social Security (SOCSO).
📌 Comply with Annual Filing Requirements
- Submit annual returns and financial statements to SSM.
- Hiring company secretary services Malaysia ensures compliance with deadlines.
Conclusion: Start Your Business in Malaysia Today!
Setting up a company in Malaysia is a straightforward process if you understand the requirements and follow the right steps. By choosing the right business structure, meeting legal obligations, and engaging professional company secretary services Malaysia, you can establish your company smoothly.
🚀 Ready to start your business in Malaysia? Consult a professional service provider to ensure a seamless company setup in Malaysia today!
