Malaysia is a preferred jurisdiction for business incorporation in Southeast Asia, particularly among foreign investors and regional entrepreneurs. The country allows 100% foreign ownership in most sectors and operates under a stable and transparent legal framework governed by the Companies Act 2016, providing strong regulatory certainty and investor protection.

Its strategic location within ASEAN, combined with a competitive corporate tax environment and a well-developed banking and professional services ecosystem, makes Malaysia an ideal base for regional operations. Businesses also benefit from lower setup and operating costs compared to Singapore and Hong Kong, offering an attractive balance between affordability, credibility, and long-term growth potential.

Why Incorporate a Company in Malaysia?

Malaysia offers several types of business entities, but the most commonly used structure for both local and foreign investors is the Private Company Limited by Shares, known as Sendirian Berhad (Sdn. Bhd.). This structure is governed by the Companies Act 2016 and is widely preferred due to its flexibility, legal protection, and suitability for commercial operations across various industries.

A Sdn. Bhd. is recognised as a separate legal entity, which means the company can own assets, enter into contracts, and sue or be sued in its own name. It provides limited liability protection for shareholders, supports flexible shareholding arrangements, and is generally more acceptable to banks for corporate bank account opening and financing facilities. In addition, this structure allows foreign ownership in most sectors and carries strong credibility with customers, business partners, and financial institutions, making it ideal for long-term business growth in Malaysia.

Types of Business Entities in Malaysia

Company incorporation in Malaysia remains one of the most practical options for foreign investors and entrepreneurs looking to establish a business presence in Southeast Asia. With competitive operating costs, a strong legal framework, and full foreign ownership permitted in most industries, Malaysia continues to attract regional headquarters, trading companies, and technology startups.

This simple guide explains how to incorporate a company in Malaysia, the statutory requirements, the registration process with SSM, and important compliance considerations for foreign-owned companies.

Director Requirements:

• Minimum one (1) director
• Must be ordinarily resident in Malaysia

Shareholder Requirements:

• Minimum one (1) shareholder
• Individual or corporate shareholder allowed
• Foreign shareholders permitted

Paid-Up Capital:

• No minimum statutory requirement
• Practical capital may be required for bank account opening, business licences, and employment pass applications

Company Secretary:

• Must appoint a licensed company secretary

within 30 days

Registered Office Address:

• Must be a local Malaysian address

Requirements to Incorporate a Company in Malaysia

Foreigners Registering a Company in Malaysia

– Important Considerations

Resident Director Requirement:
At least one director must reside in Malaysia.

Business Licences:
Certain industries such as trading, wholesale & retail, logistics, education, financial services, and professional services may require additional regulatory licences.

Corporate Bank Account Opening:
Banks usually require director attendance, KYC documentation, business explanation, and source of funds verification.

Employment Pass:
Foreign directors managing the company normally require an Employment Pass.

Capital Planning:
Higher paid-up capital improves licensing approval, banking success rate, visa applications, and commercial credibility.

Company Incorporation Process in Malaysia

Timeline : 1-3 working days (subject to submission and approval from SSM)

Step 1 – Company Name Search &

                Reservation (optional)

Preliminary search and submit proposed company name to the Companies Commission of Malaysia (SSM) .

Step 2 – Prepare Incorporation Documents

Including director and shareholder details, identification documents, registered address, business activities, and statutory declarations.

Step 3 – Submit Application to SSM

Registration via the MyCoID online portal. You will require a licensed Company Secretary to do so.

Step 4 – Receive Certificate of Incorporation

SSM issues the Notice of Registration.

Who Should Set Up a Company in Malaysia?

• Foreign entrepreneurs entering ASEAN markets
• Import / export & trading companies
• Technology startups
• Regional headquarters
• Investment holding companies
• Professional service firms

Planning to start a company in Malaysia ?

If you are planning to register a company in Malaysia or expand your business into ASEAN, speak with our team to discuss your proposed structure, licensing requirements, and compliance roadmap.

• Malaysia company incorporation
• Foreign ownership structuring
• Director & shareholder setup
• Licensing assessment
• Corporate compliance framework
• Bank account opening coordination
• Cross-border expansion (Malaysia & Singapore)

Speak to us now !