Whether the director is staying in Malaysia or overseas, foreigners can quickly form a company in five days. Although there are limitations, the foreigner may own all of the company's shares. Malaysia is among the greatest locations to start a profitable business. You can start the following businesses after Sdn Bhd company formation:
Company formation in Malaysia is the foundation for establishing a business entity in a growing country. The Malaysian government offers numerous opportunities for foreigners and local entrepreneurs across various industries. The company formation process is also quite straightforward. First, the owner must prepare some basic documents, select a suitable name that should comply with the respective authorities’ rules and regulations, and submit an incorporation application. In due course, the entire registration process is completed under the legal framework of Malaysia’s Company Formation Act 2016.
Meanwhile, as a business owner, you should know the importance of choosing the proper business structure to help your business succeed and sustain. Each business offers distinct advantages and suits different needs. Additionally, each business offers various legal and tax implications, ownership and management structure, scalability and growth options, and exit strategies. Strategically choosing the proper business structure is crucial, considering all aspects to practically shape your company's future and long-term business goals.
Malaysia’s central Southeast Asian position makes it an attractive business focal point. It is an ideal option, especially for those who want to invest in a country with extensive direct market access. It helps them sell their services or products at a rapid pace without struggling to find the consumer markets. Malaysia offers multiple trade opportunities, shipping routes, and logistics, making the regional market accessible at a relatively low commuting cost. Company formation in Malaysia also provides several other benefits, including:
Favourable Economic Conditions: Malaysia's top economic contributors are agriculture and manufacturing. Some IT services sectors also contribute to its flourishing economy, which has grown by an average of 4.3%.
Government Support: The Malaysian government encourages investors and business owners by offering them multiple benefits, incentives, and tax exemptions. Tax allowances and Pioneer status are some of them, making the process easier and doable for everyone.
Low Corporate Tax Rates: Malaysia's corporate tax rate is affordable, making the country an attractive investment destination, especially for optimising business tax liabilities. It also makes starting and operating a business relatively smooth and easy.
Access to a Skilled and Cost-Effective Workforce: Interestingly, Malaysia has a highly skilled, well-educated, and broad range of labour forces. It offers businesses highly experienced labour at low wages, leading to a business boost while spending minimal resources.
First and foremost, conduct thorough research before choosing a company name. The name should be unique and reserved through SSM.
Next, prepare necessary documents, including directors' and shareholders’ identifications, consent forms, and proof of registered office addresses.
Then, submit the application either online or by visiting their offices.
Afterwards, pay the required fees to SSM and appoint a company secretary within 30 days.
Finally, obtain all the necessary permits and licenses.
A minimum of one foreign director who will also be a shareholder is required for a SDN Bhd company.
You need a foreign director's work permit or a local Malaysian nominee director in order to open a bank account.
When registering an SDN Bhd, it is recommended to have at least Rm 2000 in paid-up capital, but no more than Rm 4000.
Raise funds as needed in the future. In the service, trading, IT, export, and/or import business sectors, it is recommended that a minimum of Rm 2000 be paid up before beginning a business.
A working permission visa, residence visa, or any other kind of visa other than a tourist visa is not required in order to register and start a business.
Unless a local Malaysian partner owns 51% of the company, Rm 1 million is needed to launch a retail and wholesale business with a Wrt license.
The required paid-up capital is as low as RM1.00, but it is not recommended, and most companies do not opt for it. Instead, they opt for higher paid-up capital because it improves their business credibility and boosts trust, paving the way to securing better financing terms with other companies, stakeholders, and investors.
Apart from that, many industries also require higher paid-up capital to maintain certain activities depending upon the nature of the business. Some of these industries include insurance, banking, and investment services. They need higher paid-up capital because all tier business activities depend on this capital amount.
Signboard: If the business deals with retail, wholesale, or manufacturing, a Signboard license is necessary. If necessary, signboard licenses can be used by any other businesses after the company formation completion.
Export & Import license: Since a sdn bhd company can import and export goods directly through a freight forwarding agent, an export and import license is typically not required. However, if necessary, we can help with getting the license.
ESD and Visa: The government agency responsible for verifying Sdn Bhd companies' eligibility to hire foreign employees is ESD. Following ESD approval, business owners are permitted to work as employees of the company and obtain permission to do so in Malaysia.
Nominee: Malaysian banks require foreign ownership companies to have either working approval or a Malaysian nominee director appointed to the position.
After forming a company, a foreign owner or shareholder cannot immediately apply for a long-term residence visa under working permission. To be eligible to apply, you must fulfil certain requirements set forth by ESD. Companies with ESD approval are permitted to hire foreign workers, and foreign shareholders may apply for a visa as employees in the appropriate roles.
An "Sdn Bhd" stands for "Sendirian Berhad". Specifically, it is a private company structure in Malaysia subjected to limited liability protections. Moreover, this structure also offers operational flexibility and is a popular choice for many businesses in Malaysia. The key characteristics of this structure include the one to 50 shareholders, private share trading, subject to corporate tax rates, and a separate legal entity from its owners. Nevertheless, this type of structure costs a bit more because of ongoing compliance and the high cost of incorporation. Generally, the cost involved:
The government registration fee is around RM1,050 to RM1,100, paid to the CCM.
A consultancy service fee of around RM1,000 to RM1,500 is charged to assist with the company formation process and fulfil all the legal requirements.
The company secretary fee ranges from RM 600 to RM1,200, and it is paid annually to manage all the company’s secretarial matters.
The bank account opening fee will either be free or may cost you around RM 500.
Additional costs include name reservation fees, signboard licensing, and import-export licensing.
Other potential costs include auditor fees, tax agent fees, annual return filing, and financial statement submission.
| Type of services | Government Fees in Ringgit | Expected service fee Ringgit |
| Sdn Bhd company Incorporation | 1010 | 2000-3000 |
| Malaysian nominee director | No | 3000-4000 annual |
| Annual return to Ssm | depend | 400 annual |
| Accounts & Audit report to Lhdn | depend | 2000 to above |
| Income tax filing | depend | 1200 to 3000 |
Old data above image (some changes are made newly as Inc. Formation Fee RM 3000 as of year 2025, Signboard RM1200 to 2000, Export RM3000, WRT RM3000)
| Description of services | License | Fees |
| Company Incorporation, 1-year company secretary and bank account. | Incorporation by SSM | 3000 |
| Prepare supporting papers and apply for signboard and premise license | Signboard & Premise |
1200-2000 |
| Prepare supporting papers and apply for export and import license | Export & Import | 3000 |
| Prepare supporting documents and apply for WRT license for nonresidents | Wrt | 3000 |
| To prepare supporting papers and apply for Kinder garden school license | Dagang.net | Negotiable |
| Add your product and/ or brand name with company name permission | Notification | 1000 |
| Prepare supporting papers and apply for Trademark license. | Trademark | 2000-3000 |
An average duration of less than 3 weeks is typically sufficient for Sdn Bhd company formation in Malaysia. However, there are some possible delays as well because multiple factors directly contribute to the process, including:
Documentation completion: You should prepare all the required documents in advance; otherwise, the process will be delayed due to incomplete documents.
SSM Workload: The companies commission of Malaysia faces a heavy fluctuation of workload, either high or low, which directly contributes to the company formation delay and swiftness.
Name Approval: This is also a critical factor. If your chosen company name is not unique and doesn't comply with the SSM guidelines, it will be rejected, leading to further delay.
Online Submission: The MyCoID portal reduces the required duration, but if you use a manual submission, it will cause a delay.
Company formation in Malaysia is a highly rewarding, enriching, and worthwhile investment because, unlike other countries, the Malaysian government wants more and more investors in their country. They attract them, offering multiple perks, security, and a smooth company formation process. Lower required minimum capital, direct access to international markets, and full cooperation from the government make the country an ideal place to invest. However, while doing your best research, you should prepare all the documents on time. It will help you avoid any delays and frustrations.
Minimum of two directors
Minimum of one shareholder
Registered office address
Resident director
Of course, they can form because the process is relatively straightforward, and the government and top authorities facilitate the investors in every matter. Business owners can own 100% of their Sdn Bhd company shares, which is less likely in other countries.
Annual return filing
Financial statement submission
Appointment of company secretary
Holding annual general meetings (AGMs)
Tax filings
Malaysia's double taxation agreement is highly beneficial for the companies making the cross border transactions easier while getting tax reliefs ultimately contributing to overall company growth and reducing the overall tax burden.
How do Malaysia's workforce development programs benefit businesses?
Malaysian workforce development programs are contributing to the country’s growing economy by utilizing skilled, adaptable, capable, and competitive local workforces in growing businesses. The Malaysian government is also specifically offering subsidies and grants to companies so that they can provide training to their staff to further enhance their skills.
1 (one) foreigner can open Sdn Bhd company but a local Malaysian nominee director/ manager is required also.
Usually, 5 working days needed for a Registration, sometimes shorter depend on Ssm systems.
Ringgit 1 (one) at least is required but we recommend to keep Rm 2000 to above not exceding 4000 initially.
Yes (Virtual office also allow). The virtual address allows Registration of a company in Malaysia for foreigners.
It is no longer needed since 2016.
Rm 3000 include incorporation, virtual address and secretary 1 year.
Signboard, premise, Export, Import, Halal and Wrt licenses base on business activities.
Yes, Malaysian nominee director is required to open bank account.
Ringgit 3000 or negotiable as yearly charge. But, it is not easy to manage local Malaysian for the engagement as nominee of a foreign ownership company.
Yes, can. And foreigner can hold 100 % shares of company.
Yes, can. Foreigner can open restaurant in Malaysia. But Wrt and Halal licenses are needed unless any Malaysian 51% shareholder is available in the company.
Only Esd permission after Registration a sdn bhd company can apply of Business Visa/ investor visa/ professional visa. To apply for ESD required equity investment capital of the company shall be RM 500,000 (100% foreign own company), RM 350,000 for joint venture company.
Yes, can.
Yes. Allow. Foreigner can register Sdn Bhd company with social visit visa (tourist).
According to Malaysian law, non-Malaysians are permitted to own all of the company's shares. However, there are restrictions in place, such as the need for Ringgit 1 million in startup capital for retail and wholesale businesses. However, wholesale and retail do not have any capital requirements. Additionally, retail and wholesale businesses need a specific license known as wrt.
A Sdn Bhd company must register in the same way as other types of businesses. A minimum share capital of Ringgit 3000 is advised, and at least one foreign director and shareholder are needed. All required paperwork must be prepared by the company secretary and submitted to SSM. Within five business days, the company's name is approved and the full incorporation process is finished.
Note: A foreign director cannot be granted permission to work in Malaysia unless the company has 500,000 Ringgit in investment capital and has received Esd approval. Contact with us for consultation, WhatsApp: +601151177141.
Contact us
Sfm Consulting Firm Sdn Bhd
Ph: +601151177141
Address: Wisma UOA II, Unit 13A, Level 15, Jalan Pinang, Kuala Lumpur, 50450
