2026 Complete Guide
How to Register a Company in Malaysia as a Foreigner
A step-by-step walkthrough of the SSM registration process for a foreign-owned company covering required documents, fees, timelines, and the mistakes to avoid.
What this guide covers
Choose your business structure
Sdn Bhd, Labuan or Rep Office
Documents you need
Full checklist for foreigners
Fees & timeline
Full cost breakdown
After registration
Bank account, tax, MTEP visa
Common mistakes to avoid
Rejection reasons & fixes
3-7days to register
24%corporate tax-rate
100%foreign ownership
RM1minimum paid-up capital
Overview
Company registration in Malaysia: the basics
Before diving into the steps, here's what every foreign entrepreneur needs to know about registering a company in Malaysia.
Company registration in Malaysia is managed by SSM — Suruhanjaya Syarikat Malaysia (the Companies Commission of Malaysia). All companies operating in Malaysia must be registered with SSM under the Companies Act 2016.
The most popular entity type for foreign investors is the Sendirian Berhad (Sdn Bhd) — a private limited company. It offers full limited liability, allows up to 100% foreign ownership in most sectors, and is eligible for the MTEP business visa. Registration is done digitally through the MyCoID 2016 portal.
One mandatory requirement: every Sdn Bhd must appoint a licensed company secretary at the time of incorporation. This is not optional under Malaysian law — the company secretary prepares and files your incorporation documents and ensures ongoing compliance with SSM requirements.
Step 1 — Before you start
Documents & requirements checklist
Gather these before starting your SSM application. Missing documents are the #1 reason for delays.
Director documents
Valid passport (all pages)
Proof of residential address (utility bill or bank statement — 3 months)
Personal email address
Mobile number (for MyCoID OTP)
Company information
3 proposed company names (in order of preference)
Business nature / industry code (MSIC code)
Registered address in Malaysia
Paid-up capital amount
Shareholder details
Passport copies of all shareholders
Shareholding percentage for each shareholder
Proof of address for each shareholder
Company secretary (mandatory)
Must be MIA/MAICSA/SSM-licensed
Must be a Malaysian resident
Files Super Form on your behalf via MyCoID
Handles ongoing annual compliance
Fees & costs
Full cost breakdown for company registration
All government and professional fees for registering a foreign-owned Sdn Bhd in Malaysia — year one.
SSM company name reservation
RM 50
SSM incorporation fee (Sdn Bhd)
RM 1,000
Company secretary
Mandatory — annual fee
RM 1,200–3,600
Registered office address
Annual fee
RM 600–1,500
MTEP visa application
If residing in Malaysia
RM 3,000–5,000
Business consultant fee
Optional — for full-service setup
RM 2,000–8,000
Typical total (year one)
RM 8,000–20,000
Costs vary based on your sector, capital requirements, and whether you engage a full-service consultant. Some sectors (finance, healthcare, education) may require additional licensing fees. Speak to a verified consultant for a personalised estimate.
After registration
What to do after your company is registered
Registration is just the start. These are the key compliance steps every new Malaysian company must complete.
Open a corporate bank account
Required to receive payments and inject paid-up capital. Most major banks require physical presence. Book your appointment before travelling.
As soon as possible
Register for corporate income tax (LHDN)
All companies must register with LHDN via the MyTax portal within 3 months of commencing business activity. Your company secretary can do this.
Within 3 months
Register for SST (if applicable)
If your annual taxable turnover exceeds RM 500,000, you must register for Sales and Service Tax (SST). Tech services may be subject to 8% service tax.
When revenue threshold is met
File annual statutory returns
Every Sdn Bhd must file an Annual Return with SSM within 30 days of the anniversary of incorporation. Your company secretary handles this.
Annually
Prepare audited financial statements
Most Sdn Bhds are required to prepare annual audited accounts and submit to SSM and LHDN. Small companies meeting certain criteria may be exempt.
Annually
Apply for business licences (if required)
Certain industries — F&B, healthcare, finance, education, construction — require additional licences from the relevant Malaysian regulatory bodies before commencing operations.
Before operations begin
Avoid these errors
Common mistakes foreign entrepreneurs make
These are the most frequent reasons SSM applications are delayed or rejected — and how to avoid them.
Proposing a company name that's too similar to an existing one
SSM rejects names that are identical or confusingly similar to registered companies, especially in the same sector. Generic names ("Malaysia Services Sdn Bhd") are often flagged.
Research existing names on SSM's e-search portal before submission
Not appointing a company secretary before filing
Many foreigners try to file directly without a licensed secretary. This is not permitted. The company secretary must be appointed at incorporation — not after.
Engage a licensed company secretary as your very first step
Using a residential address as the registered office
A residential address can technically be used but causes practical issues — it becomes public record and may affect future bank applications. Many landlords also don't allow it.
Use a professional registered address service (from RM 600/yr)
Setting paid-up capital too low for the MTEP visa
Companies register with RM 1 paid-up capital and then realise they need RM 500,000 to qualify for the MTEP visa. Increasing capital later requires additional filings and time.
If you plan to apply for MTEP, set RM 500,000 paid-up capital from the start
Choosing the wrong MSIC industry code
The Malaysia Standard Industrial Classification (MSIC) code you select determines your company's permitted activities. Wrong codes can restrict what your company can legally do.
Review the full MSIC code list or get a consultant to select the right codes.
Missing the LHDN registration deadline
Not registering for corporate income tax within 3 months of commencing business is a compliance violation that can result in penalties — even if the company has no income yet.
Ask your company secretary to handle LHDN registration immediately after SSM approval
Common questions
Frequently asked questions
Answers to the most common questions about company registration in Malaysia for foreigners.
Can I register a Malaysian company without visiting Malaysia?
Yes. The SSM registration process is fully digital via the MyCoID portal and can be completed remotely. Your company secretary handles the filing on your behalf. However, you will typically need to visit Malaysia in person to open a corporate bank account — most banks require physical presence for this step.
How long does it take to register an Sdn Bhd in Malaysia?
Name reservation takes 1 business day. After submitting the Super Form, SSM typically processes the incorporation within 3–7 business days. The total timeline from start to receiving your SSM Certificate is usually 1–2 weeks, assuming all documents are complete and correct.
Do I need a local Malaysian partner to register a company?
No. In most sectors, foreigners can own 100% of a Malaysian Sdn Bhd with no local partner required. However, some regulated industries — including primary agriculture, defence-related activities, and certain retail and distribution sectors — have foreign ownership restrictions. A consultant can advise on your specific industry.
What is a company secretary and why is one mandatory?
A company secretary is a licensed professional (MAICSA, MIA, or SSM-licensed) responsible for ensuring your company complies with the Companies Act 2016. They file statutory documents, prepare board resolutions, maintain the company register, and submit annual returns to SSM. Malaysian law requires every Sdn Bhd to appoint a company secretary at incorporation — failure to do so invalidates the registration.
What is the minimum paid-up capital for a foreign-owned Sdn Bhd?
The statutory minimum is RM 1. However, practical considerations apply: the MTEP business visa requires RM 500,000, and some regulated sectors set their own minimum capital requirements. For general trading or service businesses where you don’t need to reside in Malaysia, RM 1 is legally sufficient.
What is the difference between an Sdn Bhd and a sole proprietorship in Malaysia?
A sole proprietorship (Enterprise) offers no limited liability — you are personally liable for all business debts. Foreigners cannot own a sole proprietorship in Malaysia; this structure is restricted to Malaysian citizens and permanent residents. An Sdn Bhd provides limited liability, can be 100% foreign-owned, and is the only structure eligible for the MTEP visa.
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