Question 1

Can a foreigner own 100% of a company in Malaysia in 2026?

Accepted Answer

Yes, Malaysia allows 100% foreign ownership for most industries through a Private Limited Company (Sdn Bhd). However, certain "protected" sectors—such as education, petroleum, and retail—may still require a minimum of 50% Malaysian Bumiputera equity. It is also a mandatory requirement to have at least one director who "ordinarily resides" in Malaysia.

Question 2

Is e-invoicing mandatory for all new Malaysian businesses in 2026?

Accepted Answer

It depends on your annual revenue. Under the 2026 rollout, e-invoicing is mandatory for businesses with a turnover exceeding RM1 million. For micro-businesses earning below this threshold, e-invoicing remains voluntary. However, regardless of turnover, any single transaction exceeding RM10,000 must be issued as an individual e-invoice starting 1 January 2026.

Question 3

What is the minimum capital required to start an Sdn Bhd in 2026?

Accepted Answer

Legally, the minimum paid-up capital is only RM1. However, if you are a foreign investor intending to apply for an Employment Pass (EP) to work in Malaysia, the practical minimum capital requirement typically ranges from RM250,000 to RM500,000, depending on your industry and equity structure.

Question 4

How long does it take to register a company through the MyCoID portal?

Accepted Answer

Once all documentation is prepared, the actual registration process with the Companies Commission of Malaysia (SSM) via MyCoID usually takes 1 to 3 working days. However, you should factor in an additional 2 to 4 weeks for post-registration tasks, such as opening a corporate bank account and obtaining specific local council licenses.

Question 5

How does the 2026 Carbon Tax affect new startups?

Accepted Answer

Initially, the carbon tax targets energy-intensive industries like iron, steel, and power generation. Most SMEs and service-based startups will not be directly taxed in 2026. However, under the 13th Malaysia Plan, new businesses are encouraged to document their ESG (Environmental, Social, and Governance) practices, as this is increasingly required to access government grants and green financing.

Question 6

What are the tax rates for Small and Medium Enterprises (SMEs) in 2026?

Accepted Answer

Eligible SMEs (companies with paid-up capital of RM2.5 million or less) benefit from a tiered corporate tax rate. In 2026, the first RM600,000 of chargeable income is taxed at a preferential rate of 17%, while any subsequent income is taxed at the standard corporate rate of 24%.

Business Guides in Malaysia

2026 Business Formation in Malaysia: New Opportunities and Regulatory Updates

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