Malaysia has become one of the most attractive destinations in Asia for entrepreneurs, investors, and global businesses. With its stable economy, investor-friendly policies, strategic location, and multicultural workforce, Malaysia offers a supportive environment for starting and expanding a business. Whether you are a local entrepreneur or a foreign investor, company registration in Malaysia is straightforward when you understand the requirements and process.

This article provides a complete overview of the company incorporation process, requirements, benefits, and key considerations.

Why Register a Company in Malaysia?

Malaysia offers several advantages that make it a preferred location for business registration:

1. Strategic Location

Located in the heart of Southeast Asia, Malaysia provides access to major markets such as Singapore, Thailand, Indonesia, Vietnam, and China.

2. Business-Friendly Environment

Malaysia ranks highly in global ease-of-doing-business indexes due to efficient government systems, clear regulations, and strong investor protection.

3. 100% Foreign Ownership (Allowed in Many Sectors)

Foreign investors can fully own a Malaysian company (Sdn. Bhd.) in many business activities, making Malaysia attractive for global entrepreneurs.

4. Tax Benefits

Malaysia offers competitive corporate tax rates, tax incentives for startups and SMEs, and special programs for selected industries.

5. Skilled Workforce

The country also benefits from a multilingual and educated workforce at competitive labor costs.

Types of Companies You Can Register

The most common business structure for local and foreign entrepreneurs is the Private Limited Company (Sdn. Bhd.). Other options include:

• Sole Proprietorship

• Partnership

• Limited Liability Partnership (LLP)

• Public Limited Company (Berhad)

• Representative Office

However, the Sdn. Bhd. structure is preferred because it offers limited liability protection and is recognized for corporate activities.

Requirements for Registering a Company (Sdn. Bhd.)

To register a company in Malaysia, you will need:

1. Company Name

At least one unique proposed company name for approval.

2. Directors

• Minimum one director

• Must be at least 18 years old

• Must have a local Malaysian address
  (Foreigners may appoint nominee directors or obtain a suitable residential address after visa approval)

3. Shareholders

• Minimum one shareholder

• Can be the same person as the director

• Local or foreign individuals/companies can be shareholders

4. Registered Office Address

A legal, physical address in Malaysia (PO Box is not allowed).

5. Paid-Up Capital

Minimum RM1 is required, but foreigners may need RM1,000–RM500,000 depending on visa or business activity.

6. Company Constitution (Optional)

You may adopt the standard constitution provided by SSM.

Company Registration Process in Malaysia

Here is a simplified process for registering your company:

Step 1: Company Name Search and Reservation

Submit your proposed name to SSM (Companies Commission of Malaysia) for approval.

Step 2: Prepare Incorporation Documents

The following documents are required:

• Identification of shareholders and directors

• Business activity description

• Registered address details

• Declaration of compliance

Step 3: Submit Application to SSM

SSM will review your documents. If everything is correct, approval is usually granted within 1–3 working days.

Step 4: Receive Certificate of Incorporation

Once approved, you will receive the official Notification of Incorporation from SSM.

Step 5: Post-Incorporation Requirements

After incorporation, you must:

• Open a corporate bank account

• Register for tax with LHDN

• Apply for business licenses if required

• Maintain company secretarial and compliance records

Documents Required from Foreigners

Foreign entrepreneurs generally need to submit:

• Passport copy

• Proof of residential address

• Company structure and shareholder details

• Business plan (if required for bank or license)

Some industries may require additional approvals.

Licenses You May Need After Registration

Depending on your business, you may need:

• DBKL License (for Kuala Lumpur-based businesses)

• Industry-specific licenses

• Halal certification

• Import/export permits

Your company secretary can guide you based on your business activity.

How Much Does Company Registration Cost?

The cost varies depending on:

• Type of company

• Number of shareholders

• Secretarial fees

• Whether foreign ownership is involved

A typical Sdn. Bhd. incorporation may range from RM1,500–RM3,500, excluding licenses and additional services.

How Expert Solutions Malaysia Can Help

Registering a company in Malaysia can be complex if you are unfamiliar with local regulations. At Expert Solutions Malaysia, we provide end-to-end assistance for:

• Company Registration (Sdn. Bhd.)

• Corporate Secretarial Services

• DBKL License Assistance

• Bank Account Opening

• Employment Pass and Work Visa Processing

• Annual Returns and Audit Services

We guide you through every step to ensure fast, compliant, and hassle-free company incorporation.

Conclusion

Malaysia is one of the best destinations in Asia for business growth. With its strong economy, strategic location, and pro-business environment, registering a company in Malaysia is a smart choice for both local and foreign investors. By understanding the requirements and getting the right support, the incorporation process can be smooth and efficient.