Online Company Registration Malaysia for Foreigners - Incluence

Thinking of expanding your global business footprint? Malaysia might just be the smartest move you’ll make. This Southeast Asian powerhouse offers an irresistible mix of opportunity and efficiency that attracts entrepreneurs, SMEs, and multinational corporations alike.

Why Malaysia?

• Strategic Location: Situated in the heart of Southeast Asia, Malaysia offers easy access to major markets including Singapore, Indonesia, Thailand, Vietnam, and China. Kuala Lumpur, its capital, is a central hub for air, sea, and digital connectivity.
• Stable and Diversified Economy: Malaysia boasts a robust economy with strong manufacturing, services, and tech sectors. It consistently ranks among the top investment destinations in Asia.
• Business-Friendly Environment: The government has streamlined company registration, reduced bureaucracy, and offers incentives to foreign investors, particularly in tech, finance, education, and green energy.
• Full ASEAN Access: As a member of the ASEAN Economic Community (AEC), a Malaysian-registered company enjoys tariff-free access and simplified trade with over 600 million consumers in 10 countries.
• Multilingual Talent Pool: With a workforce fluent in English, Malay, Chinese, and Tamil, and a high literacy rate, Malaysia offers both communication and cultural versatility.
• Modern Infrastructure: World-class transportation, reliable utilities, and a fast-developing digital economy make operations smoother and more cost-effective.

Whether you're a digital nomad launching a startup, a foreign investor seeking tax efficiency, or a multinational establishing a regional HQ, Malaysia delivers the legal flexibility, market access, and growth potential to help you succeed.

Choosing the right legal structure is the foundation of a successful market entry. Malaysia offers several types of business entities tailored to different operational needs, tax strategies, ownership preferences, and industry requirements. Each structure has distinct legal, tax, and administrative implications — understanding them will help foreign investors make an informed and strategic choice.

Here are the main types of business entities available to foreigners:

• Private Limited Company (Sdn. Bhd.): The most frequently used and flexible entity, offering limited liability and 100% foreign ownership in most sectors.
• Labuan Company (Offshore): Ideal for international trading, holding, and investment activities that benefit from a low-tax regime and confidentiality.
• Branch Office: An extension of a foreign parent company; not a separate legal entity, but suitable for carrying out business locally under the parent’s liability.
• Representative Office: Functions for market research or feasibility studies only; not permitted to generate revenue or sign contracts.

Private Limited Company (Sdn. Bhd.) – Most Popular & Flexible Option

‣ Legal Status: Separate legal entity under the Companies Act 2016. Can sue and be sued in its own name, own property, and sign contracts.

‣ Ownership: Allows 100% foreign ownership in most business sectors, including IT, consulting, manufacturing, trading, logistics, and professional services. Restricted sectors (e.g., oil & gas, education, retail) may require local equity or additional licenses.

‣ Capital Requirement: As low as RM 1 for incorporation. However, for practical operations and visa eligibility (e.g., employment passes), a paid-up capital of RM 500,000 to RM 1 million may be required.

‣ Directors: Minimum one resident director (Malaysian citizen or foreigner with long-term visa and Malaysian address).

‣ Shareholders: At least one (can be a corporate or individual).

‣ Advantages:

• Full legal control
• Tax rate of 17% on the first RM 600,000 of profit; 24% thereafter
• Eligible to apply for Malaysia Digital (MD) status, tax incentives, grants, and employment passes

‣ Ideal For: SMEs, startups, export-focused firms, consulting, and digital businesses.

Labuan Company (Offshore) - Tax-Efficient & Confidential

‣ Legal Status: Governed by the Labuan Companies Act 1990; designed for international business, holding companies, and offshore investments.

‣ Ownership: 100% foreign ownership is permitted with minimal disclosure.

‣ Taxation:

• 3% corporate tax on audited profits, or a fixed RM 20,000 per year option
• No capital gains tax, no withholding tax on dividends, and no stamp duty

‣ Licensing: Regulated by Labuan Financial Services Authority (LFSA) — required for financial, insurance, fintech, and trust activities.

‣ Ideal For: Holding companies, asset management, global trading, and IP ownership structures.

Branch Office – Direct Extension of a Foreign Company

‣ Legal Status: Not a separate legal entity — it operates as an extension of the foreign parent company. All liabilities and contracts fall under the foreign entity.

‣ Registration: Must register with the SSM under the Companies Act 2016 – Section 562.

‣ Requirements:

• Two Malaysian resident agents
• Certified documents from the parent company (charter, certificate of incorporation, board resolution)

‣ Taxation: Subject to Malaysian corporate tax at 24% on income generated in Malaysia.

‣ Restrictions:

• Cannot conduct activities different from the parent company
• Not eligible for certain government grants or SME programs

‣ Ideal For: Multinational corporations looking to maintain centralized global control while operating in Malaysia.

Representative Office (RE) – For Market Exploration Only

‣ Legal Status: Not allowed to generate revenue, sign contracts, or trade. Strictly for non-commercial activities.

‣ Use Cases:

• Conducting market research and feasibility studies
• Coordinating with Malaysian agents, distributors, or suppliers
• Promoting brand presence before formal market entry

‣ Setup Requirements:

• Parent company must be in operation for at least 5 years with a strong financial track record
• Minimum operational expenditure of RM 300,000 per year in Malaysia
• Renewable yearly (up to 3 years)

‣ Employment: Allowed to hire a small team, including one expatriate and local staff, with approval from the Ministry of International Trade and Industry (MITI).

‣ Ideal For: Companies in the early stage of market entry or testing local demand.

Here's a practical, easy-to-follow guide:

Step 1: Company Name Application and Reservation

• Naming rules: Your proposed name must be unique, not offensive, and not infringe existing trademarks or reserved names.
• Use SSM's MyCoID portal to search availability.
• Fee: Standard RM 50 or RM 30 depending on portal.
• Once approved, the name is reserved for 30 days, extendable for additional periods (up to 180 days) with extra fee.

Step 2: Preparation of Registration Documents

Prepare and certify the following:

• Name approval letter.
• Form 14 / Superform (incorporation application) under the Companies Act 2016.
• Declaration of Compliance (Sec 15) & Appointment (Sec 201) forms.
• Company Constitution (optional).
• Details of directors/shareholders: passports, proof of address (utility bill, tenancy).
• Proof of registered Malaysian address (real or virtual).
• Paid-up capital proof (minimum RM1; but sector-based higher minimums may apply, e.g. RM500k-RM1m for sectors affecting visa eligibility).
• Power of attorney or certified translations if documents are in other languages.

Step 3: Submission to the SSM

• Submit all documents via MyCoID 2016 portal or through your company secretary.
• Pay the registration fees (starts around RM 1,000 for incorporation fee, plus additional cost based on share capital).
• The appointed Company Secretary (licensed and Malaysian-resident) handles most submissions and compliance tasks. They must be appointed within 30 days of incorporation.

Step 4: Receiving the Certificate of Incorporation

• If all is in order, SSM issues the Certificate of Incorporation (Form 9) within 2–10 working days. With the certificate, your company becomes a legal entity.

From here, you can:

• Open a corporate bank account in Malaysia (often requires the presence of directors and proof of capital transfer).
• Register for corporate tax with the Inland Revenue Board (LHDN), Sales & Service Tax (SST) if applicable.
• Register for EPF and SOCSO if hiring staff.
• Apply for business licences or permits in regulated industries.

Thinking about setting up business in Malaysia? Before you dive in, it's vital to understand the basic requirements. Malaysia has clear regulatory expectations that are business-friendly but require precision. Here's your definitive checklist to register a company in Malaysia as a foreigner:

Minimum Director and Shareholder Requirements

Setting up a business isn't just about paperwork—it's about people. Every Sdn. Bhd. must have at least one resident director in Malaysia. If you're overseas, don't worry: many licensed providers offer nominee director services to meet this legal requirement. You'll also need at least one shareholder, which can be an individual or a corporation.

Registered Office Address Requirement

Your business needs a legal home. A registered office address in Malaysia is mandatory for all entities. Luckily, this doesn't have to be a full-fledged office—many firms offer virtual or coworking space addresses as part of their service packages.

Appointing a Company Secretary

Behind every compliant company is a capable company secretary. Malaysia law mandates that every Sdn. Bhd. appoint a licensed company secretary within 30 days of incorporation. They ensure that your business remains compliant and up to date with filings and legal obligations.

Minimum Share Capital

Think you need millions to start? Think again. The legal minimum paid-up capital is just MYR 1. However, for work permits, licenses, and banking, a higher amount—usually MYR 2,500 or more—is advised. Paid-up capital reflects your operational commitment and can influence approvals.

Transparency builds trust—especially with finances. We believe in laying out all the possible costs so you can plan effectively. Here's what you should expect when calculating your company registration cost in Malaysia:

Government (SSM) Fees

Registering with the Companies Commission of Malaysia (SSM) involves mandatory charges:

• Name reservation: ~MYR 50 (approx. €10)
• Incorporation fee: MYR 1,000 (approx. €200)
• Stamp duty on Constitution (optional): RM 10–100 (approx. €2–20)

Our Professional Fees

Company registration in Malaysia is a multi-step process that requires careful consideration of the legal structure, business activity, regulatory obligations, and the residency status of stakeholders. The overall cost typically starts from €3,500, but may vary significantly depending on the complexity of the setup and compliance requirements.

Opening a corporate bank account—whether with a local or international bank operating in Malaysia—requires thorough preparation and can start from €2,500, depending on the institution's due diligence standards and the risk profile of the business.

Beyond incorporation, entrepreneurs should plan for ongoing corporate obligations, which may include:

• Appointment and maintenance of a licensed company secretary (mandatory under Malaysian law)
• Preparation and filing of annual returns and audited financial statements
• Ongoing tax and SST (Sales and Service Tax) compliance
• Maintenance of a registered office or virtual office address
• Support with business licensing, work permits, and employment setup
• Payroll and HR administration
• Corporate governance and internal policies

We offer a tailored approach based on your business objectives, ensuring regulatory compliance and operational readiness from day one. Whether you are structuring a holding entity, entering the Southeast Asian market, or launching a fintech or trading operation, our team ensures each step is handled with legal and procedural precision.

Starting a business doesn't end with incorporation—it begins there. Here's what comes next after you receive your certificate of incorporation:

Opening a Corporate Bank Account

Opening a business bank account as a foreigner in Malaysia can be tricky and time-consuming, typically taking between from 15 business days. One major challenge is that most local banks require at least one company director to be physically present during the account opening. Additionally, each bank has its own compliance policies and due diligence procedures, which can lead to delays or even rejections if documents are incomplete or not properly translated.

Common difficulties include:

• Inconsistent document requirements among banks
• Need for a strong local business justification
• Delays due to internal compliance review
• Requests for additional verification of source of funds or business activities

To streamline the process, we assist clients by:

• Pre-screening and selecting the right bank based on your industry and nationality
• Preparing necessary resolutions and forms in both English and Malay
• Coordinating with bank officers to schedule appointments
• Providing interpreters or local representatives if needed

Required documents may include:

• Certificate of Incorporation (Form 9)
• Superform or Section 14 (application to register)
• Business profile from SSM
• Passport copy and proof of residential address for all directors and shareholders
• Board resolution to open a bank account
• Company's Constitution (if applicable)
• Business plan, invoices or contracts (in some cases)

Our team ensures that all paperwork is accurate and complete so you're fully prepared for your bank appointment and can avoid unnecessary delays.

Annual Compliance Requirements

Compliance isn't optional—it's a continuous process that safeguards your company's legal standing and credibility. In Malaysia, every Sdn. Bhd. is required to:

• Submit annual returns to the Companies Commission (SSM) within 30 days of the incorporation anniversary
• File tax returns with the Inland Revenue Board (LHDN) annually, even if the company is dormant
• Prepare and submit audited financial statements unless the company qualifies for audit exemption as a dormant or small entity

In addition, companies must:

• Maintain updated company records, including directors' and shareholders' registers
• Report any changes in directorship, shareholding, or business address within the required timeline

Failure to comply can result in penalties, fines, and even blacklisting of directors.

We don’t just register companies—we launch legacies. Our team provides multilingual, full-service support for foreign entrepreneurs looking to enter the Malaysian market. With many years of experience managing and maintaining foreign-owned companies, we understand the nuances, legal requirements, and operational best practices. From resident directors to ongoing compliance, we’re your long-term growth partner.

We go beyond the basics. Here's what else we offer to support your business journey:

Employment Pass & Work Permit Support

Need to live and work in Malaysia legally? We assist with Employment Pass applications and ensure your capital structure and documentation meet immigration criteria.

Offshore Company Registration (Labuan)

Want to trade globally with low taxes? A Labuan company is your ideal offshore structure—simple, confidential, and taxed at just 3%.

Licensing & Permit Assistance

Retail? F&B? Consulting? We help obtain the right licenses based on your sector and state regulations.

The best time to enter a new market is now. Let our experts guide your Malaysia company registration, from choosing the right entity to ensuring compliance and growth.