Key Takeaway
One of the best steps a business will ever take is registering as a legal entity. Business registration gives the business and its owners of administrators a proper perspective of what business truly is. Doing business without proper registration is just illegal.
The business is just there, unregulated by any institution yet it keeps making money from the economy of the country. In fact, unregistered business faces higher risk by not being a legal entity because a lot of government support for business will not pass through their way at all.
Under Section 196(4) of Companies Act 2016 stated that, in order to incorporate a company, there must be at least one director who ordinarily resides in Malaysia by having a principal place of residence in Malaysia (‘resident director’) and exclude an alternate or substitute director.
The requirement of residency is mainly to ensure that there is a point of contact in Malaysia and for purposes of enforcement. While, according to Section 42(1)(b) of Companies Act 2016, there must be at least one and not more than 50 shareholders being appointed as members of the company regardless of the citizenship of the person.
According to Section 235(1) of Companies Act 2016, a company shall have at least one secretary who shall be a natural person, aged 18 years and above, and a Malaysian citizen or permanent resident.
The appointment of a company secretary at the point of incorporation is optional. Under section 236 of the Companies Act 2016, the Board must appoint a company secretary within 30 days from the date of incorporation of a company.
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Starting a business in Malaysia can be an exciting venture, whether you’re a local entrepreneur or a foreign investor. With its business-friendly environment, supportive government initiatives, and strategic location in Southeast Asia, Malaysia continues to attract new businesses across various sectors.
This guide outlines the key steps and considerations for registering a company in Malaysia, from choosing your business structure to post-registration compliance.
Before registering, you’ll need to decide on the most suitable business structure. Common business entity types in Malaysia include:
If you’re setting up a Private Limited Company (Sdn. Bhd.), here are the minimum requirements:
Minimum of 1 director (must be a resident of Malaysia and at least 18 years old).
Minimum of 1 shareholder (can be the same person as the director).
A local registered office address in Malaysia.
A company secretary (must be licensed by SSM or a member of a professional body).
Paid-up capital of at least RM1.
Key documents include:
Submit your application online via the MyCoID portal.
Pay the incorporation fee:
Upon approval, you will receive:
Once the company is incorporated, you need to:
Provide Certificate of Incorporation, board resolution, company constitution (if any), and identification documents of directors/shareholders.
Depending on your business activities:
Overall, it typically takes 5 to 10 working days to register a company in Malaysia, assuming no issues with documentation.
Malaysia allows 100% foreign ownership in many sectors under a Private Limited Company (Sdn. Bhd.). However, some sectors may require:
Foreigners must also appoint at least one resident director (Malaysian citizen or permanent resident).
Estimated incorporation costs for a Sdn. Bhd.:
| Item | Estimated Cost (MYR) |
|---|---|
| Name reservation | RM50 |
| SSM registration fee | RM1,000 – RM5,000 |
| Company secretary (annual fee) | RM600 – RM2,000+ |
| Professional service fees | RM1,000 – RM3,000+ |
| Others (e.g., stamp duty, bank setup) | Varies |
Note: Fees vary depending on the service provider and company structure.
Registering a company in Malaysia is a relatively straightforward process, especially with the help of professional corporate service providers. Whether you’re a local entrepreneur or a foreign investor, understanding the legal requirements, choosing the right structure, and complying with post-registration obligations is key to a smooth business setup.
Simplify your compliance and payroll processes with expert support. Partner with Crown Heritage for accurate, reliable, and fully compliant business solutions tailored to your needs.
Planning to expand across the border? Explore our Singapore Company Registration Guide to learn how to set up your business with confidence and compliance.
