With the acceleration of ASEAN's economic integration process, Malaysia, with its strategic geographical location, stable and transparent legal environment, competitive tax regime and a series of newly introduced foreign investment-friendly policies in 2026, is becoming a golden springboard for Chinese enterprises to venture into Southeast Asia. Whether it is laying out cross-border trade, setting up a regional headquarters or venturing into the digital economy, setting up a compliant company in Malaysia is the first step to success.

This article will be combined with the latest policy developments in January 2026, to provide you with a zero to one panoramic strategy for the registration of Malaysian companies, a systematic combing of registration types, conditions, processes, fees, tax and compliance maintenance and all other core aspects, to help you efficiently and steadily open the Malaysian business layout.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

I. Why choose to register a company in Malaysia?

1. Unprecedented friendliness of foreign investment policies in 2026

Shareholding is liberalized:In key areas such as manufacturing, digital economy and high-end service industries, the ceiling of foreign shareholding has been raised to 70%. Science and technology enterprises stationed in the Digital Free Trade Zone (DFTZ) or with high R&D investment can even apply for 100% full foreign shareholding.

Tax incentives are ramped up:Newly registered manufacturing companies (investment ≥ RM2.5 million) are entitled to a 5-year full exemption from corporate income tax; digital service exporters have the opportunity to enjoy the 0% tax rate for 10 years.

Approvals are fully digitized and accelerated:Through the "MyCoID 2.0" system, the registration process has been shortened to 7-14 working days.

2. Strategic location and mature ecology

Located in the center of Southeast Asia, with the Strait of Malacca and a well-developed logistics network, it can efficiently radiate the entire ASEAN market. A complete industrial chain has been formed in the fields of electrical and electronics, halal industry and medical services.

3. Pro-business and transparent tax system

The maximum corporate income tax rate is 241 TP3T, but there are tiered preferential rates for SMEs (minimum 151 TP3T). Additional reliefs are available for intra-regional headquarters, reinvestment, etc. The tax regime is clear and unambiguous.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

Second, the choice of company type: Sdn. Bhd. Why is foreign investment preferred?

In Malaysia, a private limited company (Sendirian Berhad, or Sdn. Bhd.) is the choice of the vast majority of foreign companies. Its core advantages include:

Limited liability:Separation of shareholders' personal property from the company's liabilities for risk control.

Foreign ownership is flexible:Under the New Deal 2026, high or even full foreign ownership can be achieved in a wide range of industries.

High level of international recognition: To facilitate the opening of bank accounts, access to international credit and cross-border transactions.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

III. Updated registration conditions and core requirements for 2026

1. Name of the company

- Must end with "Sdn. Bhd..." in English or Malay.

- Prepare 3 alternative names in advance and check them through the official SSM website.

2. Directors and shareholders

Directors: At least 1. At least 1 of them must be a permanent resident of Malaysia (citizen, permanent resident or expatriate with long term visa). Foreign directors are required to provide proof of local address (e.g. lease contract).

Shareholders: at least one, with no restriction on nationality, who may be natural or legal persons. The shareholder and the director may be the same person.

3. Registered capital

The legal minimum is only RM1 and no contribution is required.

Practical advice: usually set between RM1,000 - RM100,000 for bank account opening. Certain specific industries (e.g. consultancy, catering) have minimum paid-up capital requirements.

4. Company Secretary and Registered Address

Company Secretary: A Malaysian resident holding an SSM certified license must be appointed within 30 days of the company's incorporation to be responsible for compliance matters.

Registered Address: Valid physical address in Malaysia (a compliant virtual address provided by a professional service may be used).

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

IV. Complete registration process details (6 steps to get it done)

Step 1: Name Search and Pre-approval (1-2 working days)

Submission of name application through SSM's MyCoID 2.0 system by paying a fee of approximately RM30. Name is reserved for a period of 3 months after approval.

Step 2: Preparation of Registration Documents (3-5 working days)

The core document includes:

- Notification of name approval

- Passports/IDs of directors and shareholders (notarized for foreigners)

- Proof of local address in Malaysia

- Articles of Incorporation (M&A)

- If foreign ownership exceeds a specified percentage, a letter of approval from MIDA is required (if applicable).

Step 3: Online Application (1 working day)

Upload all documents through the system, fill in information such as shareholding structure, business scope, etc., and pay the government registration fee (about RM500-1500 depending on the registered capital).

Step 4: Government Audit (7-14 working days)

SSM reviews the company information. If the material is complete, it will be passed quickly; if there is any problem, it needs to be corrected in time.

Step 5: Receive Certificate and Engraving (1 working day)

Upon approval, download the electronic version of Certificate of Incorporation (Form 9 & Form 13) and Business License online. Subsequently engrave the company's legal seal.

Step 6: Post-establishment key issues (to be completed within 30 days)

1. Appointment and filing of a company secretary.

2. Register with the Inland Revenue Department and apply for a tax identification number (if the annual turnover exceeds RM500,000, you will also need to register for the Sales and Service Tax SST).

3. Opening of a company bank account (directors are usually required to appear in person for a face-to-face interview).

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

V. Bank account opening practice points and cost budgeting

Core Bank Account Opening Challenges and Preparation

Account opening is a key step in the practice, the bank audit is tightening. Need to focus on preparation:

Adequate proof of business: business plan, existing trade contracts, supplier/customer invoices.

Clear proof of source of funds.

Directors have a good business background.

Some banks (e.g. OCBC, UOB) require an initial deposit (e.g. RM50,000).

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

VI. Tax framework and ongoing compliance maintenance

1. Introduction to core taxes

Corporate income tax:The maximum tax rate is 241 TP3T. Small and Medium Enterprises (SMEs) enjoy a concession: 151 TP3T for the first RM150,000 of profit, 171 TP3T for the next 350,000, and 241 TP3T for the portion above 600,000.

Sales and Service Tax (SST): Equivalent to VAT with a standard rate of 6% (2026) and registration is mandatory for an annual turnover of more than RM500,000 per annum.

Personal income tax:A progressive tax rate is used with a maximum of 301 TP3T for residents and a flat rate of 301 TP3T for non-residents.

2. Annual compliance obligations (avoidance of high fines)

ANNUAL FILING: Filed annually with SSM to update company information.

Financial reports: audited or unaudited financial statements, depending on the size of the company.

Tax Returns: Annual Corporate Income Tax Returns (Form C) and SST Periodic Returns (if applicable).

Maintaining the validity of the company secretary and registered address.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

VII. Frequently Asked Questions (Q&A)

Q1: Can a foreigner 100% own a Malaysian company in 2026?

Yes, but mainly applies to digital FTZ companies approved by the Investment Promotion Agency (MIDA), high-tech innovation companies, and some manufacturing industries. Most other industries have a foreign ownership cap of 70%.

Q2: Do I need to go to Malaysia in person during registration?

There is no need to be present during the registration process and the entire process can be delegated. However, when opening a bank account, most banks require at least one of the directors to come to Malaysia in person for a face-to-face interview.

Q3: Do I still need to do accounts and tax returns if my company is not in business?

Required. Even with zero operations, you must file an annual return and zero tax return or risk fines and even company write-off.

Q4: What is the appropriate amount of registered capital?

It is not recommended to write high blindly. For start-ups, RM10,000 to RM100,000 is a common and practical range to meet bank account opening requirements without the unnecessary pressure of making out-of-pocket contributions.

Hi ~ I am the customer service of Enterprise Finance Group! We provide domestic (Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, etc.) company registration, overseas (Hong Kong, the United States, Japan, the United Kingdom, Singapore, Thailand, Vietnam, etc.) company registration, Hong Kong identity application and renewal services, while covering cross-border tax planning, shareholding structure design, compliance and risk control programs, such as the whole chain of corporate services. Contact me anytime you need, Tel: 16620947137, WeChat: Qicaiyingjituan (can be added by direct search)

concluding remarks

In 2026, Malaysia welcomes foreign investors with more openness and efficiency. However, every step of the way requires professional planning, from choosing the type of company and matching policies, to opening bank accounts and tax compliance. An in-depth understanding of local regulations and the use of specialized expertise are key to ensuring that your business journey in Malaysia is smooth, compliant and successful.