Malaysia Company Registration

From company establishment to follow-up maintenance

Helping you to develop the Southeast Asian market efficiently

What are the advantages of registering a company in Malaysia?

What are the requirements for registering a company in Malaysia?

What are the main types of Malaysian companies?

Sdn Bhd (Sendirian Berhad, Sdn Bhd) Berhad, Bhd. Limited Liability Partnership (LLP) Branch or representative office

Sdn Bhd (Sendirian Berhad, Sdn Bhd)

This is the most common form of foreign enterprise set up in Malaysia. The liability of shareholders is limited to their shares, the transfer of shares is restricted and funds cannot be raised from the public. The structure is standardized and highly reputable.

corporation

Funds can be raised from the public on a larger scale, and this form is usually used by companies intending to go public. Establishment and maintenance requirements are more stringent.

Limited Liability Partnership (LLP)

Combines the characteristics of a corporation and a partnership, with limited liability for partners and flexible internal management. Suitable for professional service organizations (e.g. accounting firms, law firms).

Branch or representative office

Companies already registered in other countries may set up a branch (which may carry on business) or a representative office (market research and liaison only, not for profit) in Malaysia. Legal liability is borne by the foreign parent company.

Basic information to be prepared for registering a Malaysian company

Registration time: about 2-4 weeks total for the entire standard process

Q&A Frequently Asked Questions

Q1: Can a foreigner own a Malaysian company with 100%?

A: The vast majority of industries are allowed. Malaysia is very open to foreign shareholdings and foreign investors can set up 100% foreign-owned private limited companies (Sdn Bhd) in most sectors, except for a few reserved sectors (e.g. finance, insurance, real estate agents, etc.) that involve national security and Malay rights and interests.

Q2: Is it necessary to have a local director to register a Malaysian company?

A: Yes, this is a statutory requirement. Under the Companies Act 2016, every Malaysian private limited company must have at least one director who is "ordinarily resident in Malaysia". This director can be a Malaysian citizen, permanent resident or a foreigner holding a long term residence permit in Malaysia (e.g. Second Home MM2H visa).

Q3: Is it costly to maintain a company every year after it is registered? What needs to be done?

A: Major maintenance work includes:
1) Annual filing: annual report and financial statements (subject to audit, unless a small company qualifies for an audit exemption) are filed with SSM;
(2) Tax Returns: Filing of Corporate Income Tax Returns;
3) Update company secretary and registered address information. Appointing a professional secretarial firm to handle this is a way to ensure compliance and efficiency.

More questions to ask