2026 to go to sea in Southeast Asia preferred! Malaysia Company Incorporation | Registration + Account Opening + Maintenance + ODI filing, read it in one article!
Published: 2026-01-08
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The latest data released by the Companies Commission of Malaysia (SSM) shows that in 2024, Malaysia added 8,326 foreign-funded registered companies, a year-on-year increase of 15.7% in 2023, of which Chinese-funded enterprises accounted for more than 32%, a new record high in the past five years; these new enterprises are mainly concentrated in the three major areas of trade, the digital economy, and green energy, which led to the creation of more than 21,000 new jobs in the local community. These new enterprises mainly focused on the three major areas of trade, digital economy and green energy, leading to the creation of more than 21,000 new jobs in the region, up 9.3% year-on-year.
Malaysia continues to be a vibrant place to do business as we enter 2025.By the end of October 2025, the total number of registered companies in Malaysia exceeded 1.38 million, an increase of 62,000 companies from the end of 2024In addition, the share of foreign-funded enterprises increased to 18.5%, making it one of the fastest-growing countries in the ASEAN region in terms of foreign capital inflow.This series of eye-catching figures is a testament to Malaysia's strong attraction to foreign investment and its central position as a business hub in Southeast Asia.
What is more noteworthy is that Malaysia has continued to step up its efforts to optimize the business environment in 2025, and has not only won the second consecutive title of "ASEAN's most foreign-friendly economy" The title also introduces a number of heavy-duty policies:The Investment Promotion Act 2025, which came into effect in March, extended the tax exemption period for emerging industries to 10 years; the upgraded Iskandar Free Trade Zone policy in June allowed foreign investors to hold technology enterprises with 100%; and the "Fast Track Registration for Digital Enterprises" launched in August compressed the examination and approval time to three working days, thus lowering the thresholds for enterprises to go to the sea on all fronts. The "Digital Enterprise Fast Track" was launched in August, compressing the approval time to 3 working days, reducing the threshold for enterprises to go overseas in all aspects.
Relying on multiple advantages such as ASEAN core location, 100% foreign ownership (non-restricted industries), low tax burden system, and RCEP member country dividend.Malaysia has become a golden springboard for Chinese enterprises to layout the market of 650 million people in Southeast Asia. From company registration, bank account opening to annual audit and tax compliance.In this article, we have compiled the most updated 2026 process guide to help you avoid compliance pitfalls and efficiently set up your business in Southeast Asia. In this article, we've compiled the latest 2026 full-process guide to help you avoid compliance potholes and efficiently land your Southeast Asian business.
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01.Malaysia's Investment Advantages
I. Location advantages: radiation 6.5 The ASEAN nucleus with a population of 100 millionfulcrum
Malaysia is located in the center of Southeast Asia, close to the Straits of Malacca, and its unique geographic location makes it a strategic pivot point for enterprises in the RCEP region.
As a newly industrialized country, its economy is based on manufacturing, services and resource exports (e.g., palm oil, natural gas), and Kuala Lumpur is a financial and trade hub.
From here, it takes 4 hours to cover the major markets in ASEAN, such as Indonesia, Thailand and Singapore, with a radiated population of 650 million. Its port efficiency ranks among the top 20 in the world, and Port Klang, as the busiest port in Malaysia with an annual throughput of more than 13 million TEUs and an average time for cargo clearance of only 2.3 hours, greatly facilitates the efficient operation of cross-border trade and saves a lot of time and cost for enterprises.
Two,Policy Advantage: Foreign Investment Friendly Business Environment
Political stability and good infrastructure, coupled with the widespread use of English, have attracted a sustained inflow of foreign investment. The Government is focusing on the development of the digital economy, green industries and high-tech sectors to strengthen regional competitiveness.
100% Foreign ownership (unrestricted industries)::With the exception of a few sectors such as finance and real estate, Malaysia allows wholly foreign-owned ownership without the need for a local partner, which provides great convenience for foreign investors.
The latest Investment Promotion Law 2025 even adds new tax breaks in areas such as digital economy and green energy, such as tax exemptions for pioneering companies (5-10 years of income tax breaks), reinvestment subsidies and tax incentives for special economic zones (e.g., Iskandar Special Zone). Startups are entitled to a 3-year 50% reduction in corporate income tax, which further reduces operating costs and stimulates market dynamics.Key policy incentives detailed:
New Investment Incentive Framework (NIIF):Effective Q3 2025, structural tax breaks for high value-added industries (up to 100% of taxable income exemption), special subsidies for equipment investment (covering up to 30% of purchase costs)
Pioneer Enterprise Program:Semiconductor, new energy, artificial intelligence and other industries enjoy 5-10 years of income tax exemption (70%-100%) and additional tax credit for R&D expenditures
East Horse Special Incentive District:Investment enterprises in Sabah and Sarawak, stacked to enjoy land cost reduction 30%, subsidies for hiring local staff, etc.
China-Malaysia Industry Synergy Support:Two countries in the semiconductor, new energy industry synergies accelerate, joint venture projects can apply for special government cooperation funds
Third, tax advantages: one of the lowest tax burden in Southeast Asia
Layered collection of corporate income tax::The tax rate is 17% for annual profit ≤ RM500,000 and 24% for the excess, which is competitive compared to Singapore's tax rate of 17% and Thailand's 20%. Emerging technology enterprises can apply for up to 10 years of tax exemption, and enterprises in free trade zones (such as Iskandar Special Zone) are exempted from import duties, which has attracted many enterprises to set up.
No VAT / Capital Gains Tax:Sales tax (SST, up to 10%) is only levied on specific commodities, zero tax burden on cross-border services, no additional tax on repatriation of profits to the home country, and the flexibility of capital dispatch is better than most Southeast Asian countries, which provides more convenience for the flow of funds for enterprises.
If you have Malaysia company registration, other overseas company registration (such as the United States company registration, the United Kingdom company registration, Singapore company registration, Vietnam company registration, Indonesia company registration, Thailand company registration, Dubai company registration, Japan company registration, etc.), overseas structure construction, cross-border e-commerce tax compliance and other needs, you can scan the code to add our online customer service!(WeChat: jxhqcy890 / Mobile: 16625410105)We will arrange professional managers to answer your questions and provide professional advice andFull one-on-one service
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02.The information process of registering a Malaysian company
1. Registration requirements
a. Type of company:Private Limited Liability Company (PLC) is the most common type of foreign investment and long term business company in Malaysia.
b. Registered capital:Minimum registered capital of RM1
c.Scope of Operation:The vast majority of industries can apply for registration, except for those within the legal scope and special industries that require a qualification
d. Shareholder and Director Requirements
01. Shareholders: at least 1 person (no statute restriction, 100% foreign shareholding is allowed)
02.Director: at least 1 person, need a Malaysian director or Malay local residential address dependency, our company can provide
03.Company Secretary: 1 person, must be certified by the Companies Commission of Malaysia (SSM), our company provides
e. Registered address: Must have a local address (which we can provide)
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2,Information requirements
1. Company name ending in SDN.BHD. (explaining the meaning of the name)
2. Scope of business (choose three that are close)
3. Scanned passport of the director and shareholder, hand-held passport photo; email address
4. Registered capital (minimum RM1, maximum RM1,000, non-payable)
If the company is holding, provide the company business license and the signature of the person in charge (we provide the power of attorney), no need to do the Hague and notarized authentication.
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3Processing Flow
(1) Contracting for payment and collection of information
(2) Company registration and name verification
(3) Approval of the name verification and sending of documents for confirmation
(4) Application for a business license
(5) Company registration and bank account opening
(6) Successful account opening
(7) Company tax registration
Follow-up compliance registration::Within 30 days after the registration is completed, it is necessary to apply for tax registration with the Inland Revenue Department of Malaysia (LHDN) (to obtain the tax number IR No.), and companies involved in import and export business are required to apply for an additional "Trade License".
If you have Malaysia company registration, other overseas company registration (such as the United States company registration, the United Kingdom company registration, Singapore company registration, Vietnam company registration, Indonesia company registration, Thailand company registration, Dubai company registration, Japan company registration, etc.), overseas structure construction, cross-border e-commerce tax compliance and other needs, you can scan the code to add our online customer service!(WeChat: jxhqcy890 / Mobile: 16625410105)We will arrange professional managers to answer your questions and provide professional advice andFull one-on-one service
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Important Notes:
Malaysia company registration these points are very critical, you can't do without them!~
❶ Appointment of Company Secretary: Within 30 days, a Malaysian licensed secretary must be appointed to take care of compliance matters such as annual audits and tax returns ⚠️ No secretary will be subject to a daily fine of MYR 50
❷ Apply for a Tax Identification Number (TIN): log in to LHDN's e-Daftar system to submit, approved in 3-14 working days, no TIN to open an account and file tax returns! Foreign companies need to provide additional proof of shareholding structure
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Advantages of registering a Malaysian company with us:
✅ Full Process Compliance Assurance.
One-stop service of registration + secretary + address + e-account opening to meet SSM (Companies Commission of Malaysia) and bank compliance requirements; from consultation to landing, full follow-up, after-sales guarantee
✅Real address with zero risk: Provide "one address for one use" physical registered address (Penang) to avoid address conflict or random check rejected.
✅Electronic account opening is efficient and convenient: no need for mainland affiliates, no business flow can be opened
✅Secretarial services throughout the year: maintenance of statutory documents, annual audit reminders, tax filing assistance, to ensure that companies continue to operate in compliance; proficient in Malaysian policy & tax affairs, to help you avoid compliance risks.
✅ Signing a compliant confidentiality contract, rights and interests are guaranteed
If you have Malaysia company registration, other overseas company registration (such as the United States company registration, the United Kingdom company registration, Singapore company registration, Vietnam company registration, Indonesia company registration, Thailand company registration, Dubai company registration, Japan company registration, etc.), overseas structure construction, cross-border e-commerce tax compliance and other needs, you can scan the code to add our online customer service!(WeChat: jxhqcy890 / Mobile: 16625410105)We will arrange professional managers to answer your questions and provide professional advice andFull one-on-one service
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03 Malaysia company registration after opening an account to avoid pitfalls
1. KYC Incomplete information was rejected:In addition to the basic documents, it is necessary to provide business documents (such as sales contracts, bills of lading) for the past 6 months, and it is recommended to attach a business plan (explaining the source of funds and business model) for newly established companies.
2. Sensitive country collection risk:Avoid receiving funds from countries on the US sanctions list (e.g. Iran, Syria) and report the purpose of any single transaction exceeding RM100,000 to the bank in advance.
3. Account dormancy is frozen:Maintain a minimum of 3 valid transactions (e.g. transfers, bill payments) per month. Balances below the bank's minimum requirement (usually MYR5,000) will be subject to an account management fee (approx. MYR50/month).
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04.Compliance Maintenance after Malaysia Company Registration
submit (a report etc) FORM 24A Annual Returns::Every year, within 30 days from the anniversary date of the company's incorporation, the company is required to submit the FORM 24A Annual Return to SSM, updating the shareholders and directors' information, registered address and other key contents in detail, so as to ensure the timeliness and accuracy of the company's registration information, so as to enable the regulatory authorities and partners to keep abreast of the company's development.
Replacement of Business Registration Certificate (BR)::The Business Registration Certificate (BR) is an important document for a company to operate legally and must be renewed annually. An annual fee of MYR500 is required to maintain the company's legal status. Failure to do so will result in a fine of RM1,000 - RM5,000, which is not only detrimental to the company's financial interest, but may also affect the company's reputation.
Tax returns (split-period processing)
Timely submission of returns and audit reports::Within 3 months after the end of the financial year, companies are required to submit an Income Tax Return (Form C) to LHDN, together with an audit report. For companies with an annual turnover of ≥ RM5 million, an audit is mandatory to ensure the authenticity and compliance of the financial data through a professional audit to provide a reliable basis for tax reporting.
Conditions and process of applying for tax exemption::If your business meets the offshore criteria, you can apply for tax exemption. Proof of offshore business, such as contracts signed in non-Malaysia, goods not passing through local ports, etc., is required to be provided when applying for tax exemption, which will effectively reduce the tax burden of the company.
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Malaysia company tax return related procedures:
Tax filing time
In Malaysia, individuals are required to file their personal tax returns for the previous year by April 30 of each year, and corporations are required to file their tax returns with the tax authorities within seven months of the end of the corporate financial year.
Procedures for filing tax returns
Under the law, the basic procedure for filing a tax return in Malaysia is for a company to obtain the relevant tax return form from the tax authorities in accordance with the tax return number issued to the company at the time of its incorporation, fill in the relevant submission and pay the tax.
tax return information
The information required to file a tax return in Malaysia includes: corporate tax return number, basic corporate information (shares and board of directors composition, etc.), corporate bank account, corporate financial yearly report, dividend payout, and profit and loss statement of corporate assets. According to the regulations, enterprises are required to pay self-estimated tax to the tax authorities every month, and then file a unified tax return at the end of the fiscal year, with the overpayment refunded and the underpayment made up. However, if the underpayment of tax exceeds TP301, a penalty of TP301 will be imposed. if there is a change in profit growth in individual months, a separate report is required to explain the change.
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Second, professional services to help compliance (daily cost＜)20 (yuan)
We have launched the "Malaysia Company Full Cycle Maintenance Package", which is a professional, efficient and caring service to escort the compliance operation of enterprises in all aspects, and the daily cost is less than $20, which is very cost-effective.
Quarterly settlement of accounts::Utilizing an advanced financial system, key statements such as balance sheets and cash flow statements are automatically generated quarterly, making the financial status of the enterprise clear at a glance. At the same time, real-time early warning of unusual transactions, such as duplicate payments and collections in high-risk areas, helps enterprises prevent financial risks in a timely manner.
Annual Audit Chargé d'affaires::With rich experience and professional team, we are deeply familiar with the requirements of SSM and LHDN system, synchronize and update the relevant information for enterprises, ensure that the annual review documents are submitted with zero error, and easily cope with the annual compliance review, so that enterprises do not have to worry about the future.
Tax planning::Tailor-made offshore structure design for the characteristics of trading enterprises, rational use of Malaysian tax policies, legal ways to reduce the actual tax burden to 12% - 15%, in compliance with the premise of maximizing corporate profits.
If you have Malaysia company registration, other overseas company registration (such as the United States company registration, the United Kingdom company registration, Singapore company registration, Vietnam company registration, Indonesia company registration, Thailand company registration, Dubai company registration, Japan company registration, etc.), overseas structure construction, cross-border e-commerce tax compliance and other needs, you can scan the code to add our online customer service!(WeChat: jxhqcy890 / Mobile: 16625410105)We will arrange professional managers to answer your questions and provide professional advice andFull one-on-one service
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05.When should a Malaysian company make an ODI filing
Chinese enterprises are required to complete the Mainland ODI outbound investment filing when carrying out the following activities through Malaysian companies
direct / indirect shareholding≥10%::
If a mainland enterprise, as a shareholder, directly or indirectly holds 10% and above in a Malaysian company, or injects start-up capital or shareholder loans (regardless of the amount), it must apply for an ODI filing. For example, if a parent company in Shenzhen injects RM500,000 to hold 60% shares in a Malaysian company, it is required to apply for ODI filing.
Using Malaysian companies as a springboard to invest in third countries::
When a Malaysian company does not operate locally only, but acts as an "offshore platform" for Mainland enterprises to invest in other countries/regions, regardless of whether it is in the form of a "new company" or "merger and acquisition of assets", an ODI filing is required. When a Malaysian company is not merely operating locally but is acting as an "offshore platform" for Mainland enterprises to invest in other countries/regions, whether in the form of "establishment of a new company" or "merger and acquisition of assets", it is required to file ODI.For example, the acquisition of an Indonesian factory after the establishment of a subsidiary in Malaysia.
Plan to repatriate profits to the MainlandIf a Malaysian company makes a profit and plans to repatriate funds to the Mainland by way of dividends, share transfers, or "shareholder loan repayment", it must first complete an ODI filing. Companies that have not done so will be required to pay 25% and will not be able to remit the funds.
Core materials for filing (we can provide one-stop agency service)
Mainland parent company nearly 1 Annual audit report::The mainland parent company shall provide an audit report for the past 1 year, in which the net assets shall be ≥ the investment amount, to prove that the enterprise has the corresponding investment strength and financial stability.
Certificate of Incorporation of Malaysia Company::A certificate of incorporation of the Malaysian company is required and the certificate has to be notarized by a local lawyer to ensure its legitimacy and validity.
Investment Plan::The investment plan should detail the use of funds, expected returns and compliance commitments so that the regulator can clearly understand the reasonableness and feasibility of the investment.
NDRC / Department of Commerce Filing Return Receipt::Our company assists in the submission of relevant materials, the approval cycle is about 15 working days, to help enterprises to complete the filing process efficiently.
Enterprise Caiying ODI filing part of the case
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06.Client Case: Malaysia Exclusive Success Stories
Case 1: A Suzhou Construction Company -- CIDB G7 Construction Certificate Processing
◦Pain point: lack of qualified professional engineers, no door for qualification processing
◦Solution: Provide 2 G7 qualified engineers, 2 weeks to complete the qualification process + work visa
Client Result: Successfully undertook infrastructure projects in Malaysia with a contract value of over 20 million RMB.
-Case 2: A Shenzhen Electronics Manufacturing Company - Malaysia Company Incorporation + Tax Planning
◦ Pain point: want to apply for the pioneer enterprise tax exemption, not familiar with the process and material requirements
◦ Solution: 30 days to complete company registration, assistance in preparing application materials, successfully approved for 5 years of income tax exemption (70% taxable income tax exemption)
◦Customer results: annual tax savings of more than 3 million RMB, successful expansion of ASEAN supply chain
-Case 3: A Guangzhou Beauty Company - Malaysia TikTok Shop Move-in + Compliance Rectification
◦Pain point: unfamiliar with the Malay language specification and NPRA certification requirements, worried about new e-commerce regulations and penalties
◦Solution: Platform Onboarding + Malay Product Information Optimization + NPRA Product Notification + Store Compliance Audit
Client Outcome: 15 days to complete the entire process, no penalties for non-compliance, monthly sales exceeding RM500,000
If you have Malaysia company registration, other overseas company registration (such as the United States company registration, the United Kingdom company registration, Singapore company registration, Vietnam company registration, Indonesia company registration, Thailand company registration, Dubai company registration, Japan company registration, etc.), overseas structure construction, cross-border e-commerce tax compliance and other needs, you can scan the code to add our online customer service!(WeChat: jxhqcy890 / Mobile: 16625410105)We will arrange professional managers to answer your questions and provide professional advice andFull one-on-one service
Tags:
Overseas Company Registration
Malaysia Company Registration
Enterprises Going Overseas
cross-border e-commerce
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