Malaysia company registration
How to register a company in Malaysia
With Emerhub, you can set up your Malaysian company (Sdn Bhd) with 100% foreign ownership in most sectors and no minimum capital to incorporate. We handle everything from the SSM filing and the resident director question to the licenses, registrations, and bank account.
Companies we've helped set up in Malaysia
Before you start
What to decide before anything is filed
The choices made before the first form is filed determine how smoothly the rest goes. Make them deliberately.
Decision 01
Which entity type fits
For most foreign investors the answer is an Sdn Bhd: a private limited company with 100% foreign ownership allowed in most sectors, no minimum capital, and full ability to trade, hire, and sponsor work passes. A branch of the foreign parent or a representative office fits narrower situations.
How to choose the entity →Decision 02
Will you sell goods?
This is the question that shapes the rest. A majority foreign-owned company in wholesale, retail, trading, import-export, or e-commerce needs a WRT license from KPDN before trading. That means RM1 million paid-up capital and physical premises. Services follow a lighter track.
How the WRT license works →Decision 03
Capital strategy
Incorporation needs only RM1. The real number follows your plans: RM500,000 to sponsor Employment Passes as a foreign-owned company, RM1 million for WRT sectors. Set it right at the start. Injecting later means waiting for SSM's records to update mid-application.
How the capital gets planned →Decision 04
The resident director
At least one director must ordinarily reside in Malaysia. A relocating founder can fill the role once resident; otherwise the structure needs a Malaysia-based director from day one. Decide who that person is before filing, since the incorporation form names them.
See the requirements →The checklist
Key requirements when setting up a company in Malaysia
What the Companies Act 2016 requires of a private limited company (Sdn Bhd). If you can tick these six, you can incorporate.
- At least one director resident in Malaysia. One director must ordinarily reside in Malaysia, with a principal place of residence in the country. A foreign national living in Malaysia qualifies; additional directors can be anywhere.
- One to fifty shareholders. Individuals or corporate entities, and 100% foreign ownership is permitted in most sectors. The director and shareholder can be the same person.
- A licensed company secretary. Appointed within 30 days of incorporation: a Malaysia-resident member of a prescribed professional body or an SSM-licensed secretary.
- A registered office in Malaysia. The address where statutory records are kept, typically the company secretary's office. Operations can run remotely or from elsewhere.
- No minimum capital, on paper. RM1 is legally enough to incorporate. In practice, Employment Passes require RM500,000 for foreign-owned companies and a WRT license requires RM1 million.
- A compliant company name. Searched and reserved through SSM's MyCoID portal (RM50 per name, held for 30 days), with restrictions on names that are identical, misleading, or contain controlled words.
The process
Steps to register a company in Malaysia
Below are the steps to set up a company in Malaysia as a foreign investor, in the order they happen. For each one you will find what to prepare, what it costs, how long it takes, and the mistakes we see most often, so you can plan the whole project before you start it.
1
Choose your entity type and check your sector
For nine out of ten foreign investors, the right entity is an Sdn Bhd (Sendirian Berhad). It is a private limited company under the Companies Act 2016. It allows 100% foreign ownership in most sectors, limited liability, and the ability to trade, hire, and sponsor work passes. A branch of the foreign parent or a representative office fits narrower cases, and some regulated sectors carry local equity conditions.
The sector check matters most. If the company will sell goods, wholesale, retail, trading, import-export, franchise, or e-commerce, and foreigners hold more than half the shares, a WRT license from the Ministry of Domestic Trade (KPDN) is mandatory before trading. It carries an RM1 million capital requirement. Service businesses follow a lighter track. The MSIC activity codes filed at incorporation should match what the company actually does, because immigration and licensing authorities check them against your later applications.
We confirm the entity, check your activities against the licensing and equity rules, and set the MSIC codes so nothing downstream gets rejected for a mismatch.
2
Plan the paid-up capital around what you'll need it for
Malaysia has no minimum capital. An Sdn Bhd can incorporate with RM1. But the legal minimum and the practical minimum are different numbers. Plan the figure backwards from what the company needs to do.
The thresholds that actually apply
- RM1: the legal minimum to incorporate
- RM500,000: for a majority foreign-owned company to register with the Expatriate Services Division and sponsor Employment Passes
- RM1,000,000: for the WRT license required in wholesale, retail, and trade, verified by KPDN against SSM's records
- RM350,000: for joint ventures where a Malaysian partner holds at least half
Capital can be injected later. But SSM's records take time to update, and license applications are checked against them. Under-capitalizing at the start costs weeks mid-application. We set the figure once, against your visa, licensing, and banking plans.
3
Reserve the name and incorporate with SSM
Incorporation runs through SSM's MyCoID portal in two moves. First the name: searched against the register, reserved for RM50 per name, and held for 30 days once approved. Names that are identical or too similar to an existing company, misleading, or containing controlled words get rejected. We check before paying.
Then the filing. The Section 14 "superform" consolidates the company details, directors, shareholders, share capital, and MSIC codes into one submission, with the RM1,000 incorporation fee. A constitution is optional under the Companies Act 2016, since the Act's default rules apply. We recommend one where shareholder arrangements need their own terms. SSM issues the Notice of Registration within one to three working days. That is the legal proof of incorporation. A formal certificate (Section 17) is available on request.
Common pitfallMismatched detail between the superform and the identity documents. A name spelled differently from the passport, an address that doesn't match the proof. SSM queries stall the filing, and each round costs days. We verify everything against source documents before submission.
4
Appoint the company secretary and registered office
Every Malaysian company must appoint a company secretary within 30 days of incorporation. The secretary is a Malaysia-resident member of a prescribed professional body, or a secretary licensed by SSM. They are the company's statutory officer. In practice the registered office sits at the secretary's address, where the statutory records live.
Emerhub acts as your company secretary through our licensed Malaysian entity and provides the registered office address. This step closes the day the company is incorporated, not four weeks later.
What the company secretary does
- Files the annual return within 30 days of each incorporation anniversary
- Maintains the statutory registers, including the beneficial ownership register SSM now requires
- Prepares board and shareholder resolutions, including share allotments when capital is injected
- Lodges changes to directors, shareholders, and the registered office with SSM
- Acts as the formal channel for SSM correspondence
Common pitfallTreating the 30-day window as breathing room. Banks, license authorities, and the ESD all expect a secretary on record before they process applications. A company without one is operationally stuck, even while legally compliant. Appoint the secretary at incorporation, not at the deadline.
5
Complete the tax and statutory registrations
With the company registered, its government identities follow. The corporate tax file with the Inland Revenue Board (LHDN). SST registration once taxable turnover crosses RM500,000. Employer registrations (EPF, SOCSO, EIS) the moment you hire. None carries a government fee. Each has its own portal, sequence, and timing, and a missed one usually surfaces at payroll or an audit.
One registration is easy to overlook: e-invoicing. Companies formed from 2026 fall under the LHDN MyInvois mandate from 1 July 2026, with relief while first-year turnover stays under RM1 million. Set the invoicing and bookkeeping up MyInvois-ready from day one. Retrofitting e-invoices onto a year of trading is far harder than starting clean.
Common pitfallAssuming tax registration means obligations start later. A new company files its tax estimate (Form CP204) within three months of starting operations, and that estimate drives the monthly instalments. Skip it and penalties land on numbers the company never declared.
6
Secure the licenses your activity needs
Incorporation creates the entity. Licenses let it operate. For majority foreign-owned companies in distributive trade, the WRT license from KPDN is the big one. It needs RM1 million paid-up capital reflected in SSM's records, physical business premises (a virtual office fails the site visit), and a one-to-three-month processing window. Majority foreign-owned service businesses in unregulated subsectors go through the lighter USS approval instead, at an RM500,000 threshold.
Beyond the foreign-ownership layer, most physical operations need a premise and signboard license from the local council. Regulated sectors carry their own approvals: construction through CIDB, food and consumer products through their regulators, finance through BNM or the SC. Our Malaysia product registration service covers the NPRA, MDA, and related product tracks.
7
Open the bank account and inject the capital
Malaysian banks open corporate accounts on the strength of the incorporation pack, the secretary's certification, and KYC on the directors and beneficial owners. Most banks want to meet the resident director. Several now run digital onboarding for straightforward profiles. Foreign-owned companies face more questions than local ones, but the process is easier than in Hong Kong or Singapore.
Once the account opens, the paid-up capital planned in step two is injected and the share allotment lodged with SSM. The figure the license authorities and ESD check is then the figure on record. Banks also read capital as a substance signal. An application from an RM1 company invites questions an RM500,000 one does not.
What the bank asks for
- Notice of Registration and company profile from SSM
- Constitution, where one was adopted
- Passports and proof of address for directors, signatories, and beneficial owners
- Board resolution authorizing the account, prepared by the secretary
- Description of expected activity and transaction profile
8
Activate the company's compliance
The recurring obligations start at incorporation. Set up properly, Malaysia's are lighter than most of the region. The annual return files within 30 days of each incorporation anniversary, and financial statements are prepared annually. The audit question has changed: Malaysia is phasing in audit exemptions for small private companies, so a qualifying Sdn Bhd may not need an annual audit at all. We confirm whether yours qualifies as part of the setup.
What needs to be set up
- Annual return calendar: due within 30 days of each incorporation anniversary
- Financial statements and audit determination: audited unless the company qualifies for the phased small-company exemption
- Tax estimate (CP204) filed within three months of commencing operations, driving monthly instalments
- Beneficial ownership register maintained and lodged with SSM, kept current as ownership changes
- ESD registration when the company will sponsor Employment Passes for foreign staff or founders
- MyInvois e-invoicing live from the applicable date, with the books structured for it from day one
Our Malaysia accounting service then runs the recurring cycle: bookkeeping, the filings, e-invoicing, and the annual return, handled by the same team that set the company up.
Common pitfallAssuming the audit exemption applies automatically. It depends on revenue, asset, and employee thresholds that phase in by financial year. Skip an audit you still needed and the company has a statutory breach on its hands. Confirm whether yours qualifies in its first year, before the first financial statements are due.
Map your Malaysian setup in one call
A free, no-obligation consultation with our Kuala Lumpur team. You'll come away knowing whether your activity needs a WRT license, the capital figure that fits your visa and licensing plans, and a realistic timeline for your case.
Required documents
Documents required to register a company in Malaysia
Everything the incorporation needs, split into what you gather and what gets prepared and filed for you. Run through it before kickoff.
Documents you provide
- Passport copiesColor scan for each foreign director and shareholder
- MyKad copiesFor Malaysian directors, shareholders, or the resident director
- Proof of residential addressUtility bill or bank statement under three months old, per person
- Three name preferencesChecked against SSM's register before reserving
- Corporate shareholder documentsCertificate of incorporation and registers, certified, with English translation where needed
- Description of planned activitiesFor the MSIC codes and the WRT/USS determination
- Intended capital figurePlanned against your visa and licensing needs in step 2
Prepared and filed for you
- Name search and reservationThrough the MyCoID portal
- Section 14 superformThe consolidated incorporation filing to SSM
- ConstitutionWhere one is adopted; the Act's default rules apply otherwise
- Statutory declarations and consentsDirector declarations under the Companies Act 2016
- First board resolutionsAppointments, registered office, bank account authorization
- Statutory registersMembers, directors, and the beneficial ownership register
- Tax and employer registrationsLHDN, SST where applicable, EPF, SOCSO, EIS
- Compliance calendarAnnual return, CP204, and filing dates for the first two years
The timeline
Malaysia company registration timeline
SSM processes the incorporation in one to three working days, so the entity exists within the first week. Banking and registrations run over the following weeks. Where a WRT license applies, its one-to-three-month processing sets the launch date.
Incorporation (SSM)
Banking (depends on bank and profile)
Compliance setup (parallel work)
Common questions
Malaysia company registration FAQs
Specific questions about setting up an Sdn Bhd as a foreigner.
How long does it actually take to register a company in Malaysia?
SSM processes the incorporation in one to three working days once the superform is filed, and name reservation takes one to three days before that. Plan one to two weeks from kickoff to an incorporated company with its secretary and registrations in place. The bank account adds two to four weeks. A WRT license, where your activity needs one, runs one to three months.
How much does it cost?
Government fees are modest: RM1,000 for the incorporation plus RM50 per name reservation. Service fees depend on the package and on whether your activity needs the WRT or USS track. The capital thresholds (RM500,000 or RM1 million for foreign-owned companies with visa or trade plans) are not fees. That money goes into your own company's account. Schedule a call and we'll quote your exact case.
Can a foreigner own 100% of a Malaysian company?
In most sectors, full foreign ownership is allowed. A handful of regulated industries carry local equity conditions, and majority foreign-owned companies in wholesale, retail, and trade need the WRT license before they can trade. Ownership and licensing are two separate questions, and your exact activity decides both. We check them together before anything is filed.
Do I need a Malaysian director?
You need a resident director, not a Malaysian citizen. At least one director must ordinarily reside in Malaysia. A foreign founder who relocates fills the role once resident. Until then, we arrange a Malaysia-based director as part of the setup. Any other directors can live anywhere.
Is the RM1 minimum capital real?
On paper it is real. An Sdn Bhd can incorporate with RM1. In practice the figure follows your plans: RM500,000 to sponsor Employment Passes as a foreign-owned company, RM1 million for the WRT license. Banks also read capital as a sign of substance. Setting it right at incorporation beats topping up in the middle of an application.
What is the WRT license?
It is the Wholesale, Retail and Trade license from KPDN. It is mandatory for companies with more than 50% foreign ownership in distributive trade: retail, trading, import-export, wholesale, franchise, and e-commerce selling to Malaysian consumers. It needs RM1 million paid-up capital reflected in SSM's records and physical premises that pass a site visit. Processing takes one to three months. Service businesses go through the lighter USS approval instead.
Can I use a virtual office?
It depends what you need the address for. For incorporation and the registered office, a virtual address works, and the registered office is usually the company secretary's address anyway. A WRT license or ESD registration is different: those need real business premises, and the authorities run site visits to weed out shell setups. Your address strategy follows what the company actually does.
Can I register without coming to Malaysia?
The incorporation can run remotely. Documents are signed and certified abroad, and we file through MyCoID. Two things still need someone on the ground: the resident director requirement, and the bank account. Most banks want to meet the resident director in person, even when everything else is handled digitally.
Can I get a work visa through my own company?
Your own company can sponsor your Employment Pass. It first registers with the Expatriate Services Division, which needs RM500,000 paid-up capital for foreign-owned companies, or RM1 million in WRT sectors. Salary thresholds apply per EP category, and they were revised upward in the June 2026 framework update. Confirm the pass strategy against current numbers before committing to a structure.
Does every Malaysian company need an audit?
Not anymore. Malaysia is phasing in audit exemptions for dormant, zero-revenue, and small private companies, with thresholds on revenue, assets, and employees that step up by financial year. Many small foreign-owned companies now qualify. We work out the answer for your first year as part of the setup, rather than defaulting you into an audit you may not need.
Do I need to issue e-invoices?
Most new companies will, in time. Companies formed from 2026 fall under the LHDN MyInvois mandate from 1 July 2026, with relief while turnover stays under RM1 million after the December 2025 threshold increase. Retrofitting e-invoicing onto a year of trading is painful, so we set the books up MyInvois-ready from day one.
What corporate tax will the company pay?
The headline rate is 24%. Malaysia's preferential SME rates exist, but they stop applying once foreign companies or non-citizen individuals hold more than 20% of the shares. So most foreign-owned Sdn Bhds pay the flat 24% on chargeable income. Most share disposals carry no capital gains tax, and dividends paid from taxed profits carry no withholding.
Setting up in Malaysia?
Talk to our Kuala Lumpur team
A free, no-obligation consultation: thirty minutes with our Kuala Lumpur team to confirm your entity and license path, the right capital figure for your plans, and a realistic timeline.
Emailmalaysia@emerhub.com
Phone / WhatsApp+60 17 684 9718
OfficeC-18-6, KL Trillion
Kampung Datuk Keramat
50400 Kuala Lumpur, Malaysia
Kampung Datuk Keramat
50400 Kuala Lumpur, Malaysia