Business Registration in Malaysia
For the registration of all businesses – including foreign companies – in Malaysia, the process of setting up a business entity is governed by the Registrar of Companies, commonly known as the Suruhanjaya Syarikat Malaysia (SSM) or Companies Commission of Malaysia.
Your incorporation structure will determine your compliance obligations, tax exposure, and ability to scale in Malaysia. Choosing the right business structure is a key step in the incorporation process, as it determines ownership, liability, and future flexibility.
Business Structures in Malaysia: Choosing the Right Company Type
Businesses can choose from several structures depending on their objectives, ownership requirements, and long-term plans. In Malaysia, selecting the right business structure is a key part of the incorporation process, as it affects ownership, liability, and future growth
1. Sdn Bhd and Berhad (Private and Public Limited Companies)
These are companies limited by shares, which require a minimum of one shareholder (Section 14 of the Companies Act 2016), at least one company director (Section 122 of the Companies Act 2016), and a company secretary.
The documents to be lodged with SSM include a company constitution, Section 201 (statutory declaration by the company director(s) of not being either bankrupt or convicted of any offense), Section 236(3) (declaration by a person before appointment as Company Secretary), and identity cards/passports of all the director(s) and the company secretary.
The main difference between SDN BHD and BHD is that the former can’t have more than 50 shareholders, and its shares are not open to the public, unlike the latter. Do note that in Malaysia, there is also the option of incorporating a company unlimited, whose incorporation procedure and documents required are the same as those of a company limited by shares.
The only difference is that the constitution of an unlimited company must state that the liability of its members is unlimited.
2. Sole Proprietorship and Partnership
These can include any form of trade, commerce, profession, or activity done for profit, excluding those specified in the Schedule of the Registration of Businesses Act 1956 (ROBA 1956) and ROBA Rules 1957. If a business is entirely owned by an individual under their personal name, it is called a sole proprietorship.
If the business is owned by two or more persons but not exceeding 20 persons, it is known as a Partnership. Do note that the registration (for one to five years) can either be done at the SSM counter or online through the Ezbiz portal ezbiz.ssm.com.my and must be done within 30 days of the start of the business.
3. Limited Liability Partnership (LLP)
This is an alternative business vehicle – formed by professionals such as Lawyers, Chartered Accountants, and Company Secretaries – regulated under the Limited Liability Partnerships Act 2012. Its salient features include flexibility in terms of formation, maintenance, and termination; protection of limited liability to its partners (meaning any debts are borne by the assets of the LLP and not that of its partners); and legal status of a body corporate capable of suing and being sued.
Over the last few years, SSM has made substantial efforts to transform and streamline Malaysian business registration processes online, depending upon which of the above types you choose from. The first step would invariably be to decide on a name and place it under reservation via the SSM’s Malaysia Corporate Identity (“MyCoID”) portal.
Related Read: Guide To Set Up A Malaysian Company
Company Formation in Malaysia Under the Companies Act 2016 (for SDN BHD and BHD)
In general, there are three types of companies that can be incorporated in Malaysia: limited by shares (fee is RM1,000), limited by guarantee (fee is RM3,000), and a company unlimited. All of these have a few common features, including a name, one or more members, and company directors.
But the most common type is a company limited by shares. If such a limited company has at least one director who has a principal place of residence in Malaysia and one promoter, it is a Private Limited company. (or locally known as SDN BHD)
While it is a public company (or locally known as BHD), if it has at least two directors who have a principal place of residence in Malaysia and a minimum of one promoter.
In terms of requirements, the following information is needed for the business registration of any of these companies in Malaysia:
- Proposed Company Name
- Either a Private or Public Company
- Proposed Business Type
- Registered Office Address
- Business Address
- Paid-Up Capital (minimum of RM1)
- Details of Directors(s) and Promoter(s)
- Declaration From Directors(s) and Promoter(s)
- Declaration of Compliance From Individuals Responsible for the Incorporation
- Additional Documents (if any)
When all steps are completed, SSM will issue a certificate of registration.
Do note that all companies in Malaysia must appoint a company secretary (who ordinarily has a principal place of residence in Malaysia ) within 30 days of incorporation. He or she must either be licensed by SSM, or a member of a professional organisation prescribed by the Ministry of Domestic Trade and Consumer Affairs.
Overall, company secretaries in Malaysia are tasked with ensuring that your company complies with all regulatory requirements, including taxation, maintaining proper accounts and bookkeeping, passing directors’ and members’ resolutions in a timely manner, and setting the financial year-end.
Moreover, for companies limited by shares, having a company constitution is non-mandatory.
Who This Service Is For
This service is designed for:
- Foreign companies entering the Malaysian market
- Singapore-based businesses expanding into Malaysia
- Entrepreneurs establishing a Sdn Bhd structure
- SMEs formalising their business operations
If your priority is speed alone, many providers can assist. If your priority is ensuring the right structure from the outset, this is where we add value. Once you have clarity on the requirements and structure, the next step is ensuring everything is set up correctly from the outset. This is where our team supports you.
Requirements to Register a Company in Malaysia
To incorporate a Sdn Bhd, you will typically need:
- At least one resident director
- A registered office address in Malaysia
- A licensed company secretary
- Minimum paid-up capital of RM1
These requirements are governed under the Companies Act 2016.
Cost of Incorporating a Company in Malaysia
The cost of incorporating a company in Malaysia typically includes both government fees and professional service fees.
Government Fees
- Company limited by shares: RM1,000
- Company limited by guarantee: RM3,000
Professional and Setup Costs
In addition to government fees, businesses should consider:
- Company secretary fees
- Incorporation service fees
- Registered office and compliance setup
Estimated Total Cost
Total incorporation costs vary depending on the structure and level of support required. Most businesses engage a corporate service provider to ensure compliance and avoid delays or restructuring costs later.
Can Foreigners Own a Company in Malaysia?
Malaysia allows 100% foreign ownership in most sectors.
However:
- Certain regulated industries may require local participation
- Additional approvals may be needed depending on the business activity
- A resident director remains mandatory
For foreign investors, structuring decisions should be made early to avoid regulatory complications later.
Who This Service Is For
This service is designed for:
- Foreign companies entering the Malaysian market
- Singapore-based businesses expanding into Malaysia
- Entrepreneurs establishing a Sdn Bhd structure
- SMEs formalising their business operations
If your priority is speed alone, many providers can assist. If your priority is ensuring the right structure from the outset, this is where we add value.
Not sure if a Sdn Bhd is the right structure for your business?
A short discussion can help you assess:
- Structure suitability
- Regulatory and tax considerations
- Expected timelines
Speak with our team before proceeding with incorporation.
How Can We Help
Regardless of what type of business entity you choose to incorporate in Malaysia, be mindful of the distinctive regulatory and legal requirements – both pre-and post-incorporation- that the country imposes. To assist you through the business registration process for your foreign company in Malaysia, this is where we can help. InCorp Global is the leading corporate services provider in Singapore and Southeast Asia, with over two decades of domain expertise. To get started, contact us today for more information.
FAQs for Company Incorporation Malaysia
Can a foreigner own 100% of a company in Malaysia?
- A: Yes, 100% foreign equity ownership is permitted for the majority of industries in Malaysia, including consulting, technology, and manufacturing. Some specific sectors—such as education, retail, and petroleum—may have local participation requirements. InCorp can verify your specific business code to confirm your eligibility for full ownership.
- Yes, the Companies Act 2016 requires at least one resident director who has a principal place of residence in Malaysia. This can be a Malaysian citizen or a foreigner with a valid resident permit. If you do not have a local representative, InCorp provides Nominee Director services to help you meet this legal requirement safely.
- The official SSM incorporation fee is a flat RM1,000 for companies limited by shares. For foreign-owned companies, additional paid-up capital requirements often apply to secure business licenses or work permits. InCorp offers all-in packages that cover the registration fee, company secretary, and registered office setup.
- Once your company name is approved and documents are signed, SSM typically issues the Notice of Incorporation within 1 to 3 business days. InCorp uses the digital MyCoID portal to expedite submissions, ensuring your business is ready to operate as quickly as possible.
- Yes, all new companies must be structured for e-Invoicing compliance. As of 2026, the Inland Revenue Board (LHDN) requires businesses to integrate with the MyInvois portal for digital tax reporting. InCorp’s incorporation packages include a compliance health check to ensure your accounting setup meets these 2026 standards.
- Every Malaysian company must have a registered office address where statutory records are maintained. While your business operations can be remote or virtual, the law requires a physical registered address (usually provided by your Company Secretary). InCorp provides a prestigious Damansara City address to satisfy all legal requirements.
