Planning to register a company in Malaysia? It is the 5th largest economy in Southeast Asia, well known for its manufacturing and exports.
This guide will walk you through the Malaysia company registration process, including entity options, requirements, and key considerations for setting up a company in Malaysia.
Types of Companies You Can Register in Malaysia
Before diving into the registration process, it's important to understand the different types of business entities available in Malaysia. The most common types of business entities for foreign investors are:
- Private Limited Company (Sdn Bhd): Commonly known as Sdn Bhd in Malaysia, it offers limited liability protection for shareholders and operates as a separate legal entity
- Limited Liability Partnership (LLP): Combines elements of Sdn Bhd and Partnership
- Branch Office: An extension of a foreign company operating in Malaysia. It's suitable for companies that want to maintain their foreign identity while conducting business in Malaysia
- Representative Office: Suitable for foreign companies looking to explore business opportunities in Malaysia without engaging in profit-making activities
For most foreign investors, the Private Limited Company (Sdn Bhd) is the preferred choice due to its liability protection and flexibility.
It is advisable to consult Emerhub's local business advisors who will help you determine the best structure for your specific business needs.
Key Requirements to Register a Company in Malaysia
In Malaysia, the Companies Commission of Malaysia (SSM) is responsible for regulating companies. Therefore, if you plan on registering your company in Malaysia, you must fulfill several requirements by SSM including the following:
- Have at least one director who is at least 18 years old and ordinarily resides in Malaysia
- At least one shareholder (can be the same person as the director)
- Have a qualified company secretary who is a resident of Malaysia
- A physical office address in Malaysia
- Minimum paid-up capital of RM1 for 100% local ownership or RM500,000 to RM 1 Million for foreign ownership (varies depending on the business activity).
Step-by-Step Process to Register a Company in Malaysia
To register a company in Malaysia, you need to reserve a business name, obtain the certificate of incorporation from SSM, and acquire general and industry-specific permits from relevant authorities.
Here’s a step-by-step breakdown of the company registration process in Malaysia:
1. Business Name Reservation
The first step during the company registration process in Malaysia is to choose and reserve the company name. Keep in mind that the name must be unique and should comply with the business naming requirements in Malaysia.
SSM approves the company name after review, usually within 1-2 business days. Once approved, the business name is reserved for 30 days.
Emerhub’s business advisors conduct the name search for your preferred company name and reserve it on your behalf.
2. Obtaining the Certificate of Incorporation from SSM
Once the business name is approved, the next step is to apply for company registration with SSM within 30 days.
The following are the documents required during the company registration process in Malaysia:
- A copy of a valid identity document for the company director and corporate secretary
- Proof of address such as rental agreement, utility bill, etc
- Reserved business name
- Details for the type of business and planned business activity
Upon review, SSM issues a Certificate of Incorporation if there are no deficiencies in the application.
To ensure your documents are prepared correctly and to avoid any delays in the process, consider seeking assistance from Emerhub's experts in Malaysia.
3. Acquiring the General and the Industry Specific Licenses and Permits
To ensure that your business complies with Malaysian regulations, you need to secure the necessary licenses and permits. Mainly, there are three categories of licenses in Malaysia:
- General Licenses: Such as the Business Premise License, Signboard License, Corporate Tax Registration, and other employment-related licenses.
- Industry-Specific Licenses: These vary depending on the industry you plan to operate in and are obtained from relevant authorities. For example, a Manufacturing License is obtained from MIDA while a WRT License for trading activities in Malaysia is obtained from the Ministry of Domestic Trade and Consumer Affairs (KPDNKK).
- Activity Specific Licenses: Such as Sales and Service Tax Registration, Building Plan Approval, and Approval to install air pollution control equipment.
Book a free consultation with our experts to discuss the necessary licenses you will need based on your planned business activity.
Cost of Setting Up a Company in Malaysia
As per Malaysia’s Companies Act 2016, the minimum fee to register a company with SSM is RM 1000 (USD 212*). However, remember that several other expenses are typically associated with the company registration process and initial setup. These can include:
- Name reservation fees
- Company secretary fees
- Registered office address costs (if renting a place or using a virtual office service)
- Business license fees (which vary depending on your specific activities and location)
- Bank account opening fees (if applicable)
*may vary depending on the current exchange rate
Key Considerations for Foreigners Registering a Company in Malaysia
Foreigners can register a Sdn Bhd in Malaysia but must meet specific requirements:
- Local Resident Director Required: At least one director must be a Malaysian resident (citizen, PR, or valid work visa holder). Foreign owners without a local partner can consult our local experts.
- 100% Foreign Ownership Allowed: Most industries permit full foreign ownership, but some regulated sectors (e.g., banking, oil & gas, telecom) require a Malaysian shareholder.
- Work Visa for Business Owners: If managing the company in Malaysia, foreign owners may need an Employment Pass (EP) or Malaysia My Second Home (MM2H) visa.
Easily Register Your Company in Malaysia with Emerhub
Emerhub makes it easy for foreign investors to start their business operations in Malaysia and assists them throughout the entire company registration process.
Our business advisors will help you determine the most relevant business entity and obtain the certificate of incorporation and all necessary licenses and permits on your behalf from relevant authorities.
Fill out the form below to get in touch with our business advisors.
Frequently asked questions
Can a foreigner register a company in Malaysia?
Yes, foreigners can register and fully own a Sdn Bhd (private limited company) in Malaysia, but they must appoint at least one resident director and a local company secretary.
How long does it take to register a company in Malaysia?
The company incorporation process takes 1-3 business days, provided all documents are in order. Opening a bank account and obtaining business licenses may take additional time.
Can I register a company in Malaysia remotely?
Yes, foreigners can register a Sdn Bhd remotely through a corporate services provider such as Emerhub, but a resident director is required for compliance. Our local experts will help you find a resident director (if needed).