Business Registration in Malaysia
To register a business in Malaysia, you must complete Malaysia company registration with the Companies Commission of Malaysia (SSM). For a private limited company (Sdn Bhd), the process requires a registered office address, resident director, shareholders, minimum paid-up capital of RM1, and online submission through SSM’s MyCoID portal.
Your incorporation structure will determine your compliance obligations, tax exposure, and ability to scale in Malaysia. Choosing the right company structure is a key step in the business registration process, as it determines ownership, liability, and future flexibility.
Which Business Structure Is Right for The Company in Malaysia?
Businesses can choose among several vehicles based on their specific objectives, ownership requirements, and long-term expansion plans.
1. Sdn Bhd and Berhad (Private and Public Limited Companies)
These are the most common choices for established businesses. Under the Companies Act 2016, a private limited company (Sdn Bhd) requires at least one shareholder, one director, and a qualified company secretary. Unlike a public Berhad (Bhd), a Sdn Bhd is capped at 50 shareholders and its shares are not available to the public.
In Malaysia, you also have the option to incorporate an unlimited company, which follows a similar procedure but requires a constitution stating that members’ liability is unlimited.
2. Sole Proprietorship and Partnership
These can include any form of trade, commerce, profession, or activity carried on for profit, excluding those specified in the Schedule to the Registration of Businesses Act 1956 (ROBA 1956) and the ROBA Rules 1957. If a business is entirely owned by an individual under their personal name, it is called a sole proprietorship.
If a business is owned by two or more persons, up to a maximum of 20, it is known as a Partnership. Do note that registration (for one to five years) can be done either at the SSM counter or online through the Ezbiz portal at ezbiz.ssm.com.my, and must be completed 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 those 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 enable online company incorporation in Malaysia, 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
What Is the Step-by-Step Process for Company Registration in Malaysia?
To register a company in Malaysia, you reserve a name with SSM, prepare director and shareholder particulars, submit the Section 14 application through the MyCoID portal, and receive your Notice of Registration on approval. For a Sdn Bhd, SSM approval typically takes 1 to 5 working days.
Step-by-step guide to incorporate a company in Malaysia
Step 1: Reserve Your Company Name with SSM
Submit your proposed name through the SSM MyCoID portal. Approval costs RM50 and holds the name for 30 days, extendable to 180 days.
Step 2: Prepare Director and Shareholder Details
Gather identification and residential addresses for all directors and shareholders, your registered office address, your MSIC business activity code, and proposed paid-up capital.
Step 3: Submit the Section 14 Application
Your company secretary files the Superform and compliance declarations through MyCoID. The SSM fee is RM1,000 for a company limited by shares, RM3,000 for one limited by guarantee.
Step 4: Receive Your Notice of Registration
SSM issues the Notice of Registration under Section 15 by email. The date on it is your date of incorporation. It is not the same document as a Certificate of Incorporation.
Step 5: Appoint Your Company Secretary Within 30 Days
A statutory deadline, not a formality. The secretary must reside in Malaysia and be SSM-licensed or a member of a prescribed professional body. See our secretarial and compliance services.
Step 6: Complete Post-Incorporation Registrations
Registration makes your company legal, not operational. Before trading, you will need to open a corporate bank account, register for corporate tax with LHDN, register as an employer with EPF, SOCSO and EIS, apply for any licences your MSIC code requires, and prepare for MyInvois e-Invoicing.
What are the Requirements to Register a Company in Malaysia?
To incorporate an Sdn Bhd, you will typically need to meet several key requirements and complete the necessary registration and documentation with SSM. The requirements are as follows:
- 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.
What Is a Certificate of Incorporation in Malaysia?
A Certificate of Incorporation is the document issued by SSM under Section 17 of the Companies Act 2016, evidencing that a company exists as a legal entity from the date stated on it. It records the company name, registration number, date of incorporation, company type, and registered office address.
What is the 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 Needs Company Incorporation Services in Malaysia?
This service is designed for:
- Foreign companies entering the Malaysian market
- Singapore-based businesses expanding into Malaysia
- Entrepreneurs establishing an 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.
Not sure if an 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 InCorp Malaysia Help With Your Company Setup?
Incorporating a business in Malaysia involves specific legal and regulatory requirements, both before and after registration. As a leading corporate services provider in Southeast Asia with over two decades of experience, InCorp Malaysia can guide you through the process. Contact us today to get started.
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.
- It takes 3 to 7 working days to get a Certificate of Incorporation in Malaysia once the completed application is submitted through the SSM MyCoID portal. Name search and approval take 1 to 2 working days, preparing and lodging the incorporation details takes 1 to 3 working days, and SSM's review and issuance of the digital certificate takes a further 1 to 3 working days. Because the Section 17 certificate is issued on request rather than emailed automatically, InCorp applies for it as part of the incorporation process so it is ready before your bank account application.
- SSM's MyCoID portal is the official filing system, with EzBiz for sole proprietorships and partnerships. An Sdn Bhd cannot be self-filed because the Section 14 application must be lodged by a licensed company secretary. InCorp Malaysia files it for you, handling name reservation through to your Notice of Registration and company secretary appointment.
- 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.
