How to Start a Business in Malaysia as a Foreigner
Malaysia is one of Southeast Asia's most business-friendly countries with low taxes, a strategic location, English-speaking talent, and a fast company registration process.
3-7days to register
24%corporate tax-rate
100%foreign ownership
RM1minimum paid-up capital
Why foreign entrepreneurs choose Malaysia
From tax advantages to strategic location, Malaysia consistently ranks among Asia's top destinations for business setup.
Strategic regional hub
Kuala Lumpur sits at the centre of a 670-million-person ASEAN market, with direct flights to every major Asian city.
Low cost of operations
Office space, salaries, and living costs are significantly lower than Singapore, Hong Kong, or Bangkok — without sacrificing quality.
100% foreign ownership
In most sectors, foreigners can own 100% of a Malaysian company — no local partner required by law.
Competitive tax rates
24% standard corporate tax, with SME rates at just 17% on the first RM 600,000 in profit for qualifying companies.
English-speaking workforce
Malaysia ranks among the highest in Asia for English proficiency, making hiring and daily operations straightforward.
Thriving tech ecosystem
Home to MSC Malaysia, Digital Free Trade Zone, and a growing startup community backed by government investment.
Business structures for foreigners
The right entity type depends on your business model, sector, and whether you need to live in Malaysia.
Most popular
Sdn Bhd
Private Limited Company — the standard choice for foreign entrepreneurs across all sectors.
Min. paid-up capitalRM 1 (most sectors)
Foreign ownershipUp to 100%
Registration time3–7 business days
Corporate tax24% (17% SME rate)
MTEP visa eligible✓ Yes
Best forTech, consulting, trading
Best for tax
Labuan Company
Offshore entity for international business with a highly favourable flat tax rate.
Min. paid-up capitalUSD 1
Foreign ownership100%
Registration time5–10 business days
Corporate tax3% flat rate
MTEP visa eligibleConditional
Best forHolding, e-commerce, funds
Market entry
Representative Office
Non-revenue presence in Malaysia for testing the market before full incorporation.
Min. paid-up capitalN/A
Foreign ownership100%
Registration time2-4 weeks
Can generate revenue?✕ No
MTEP visa eligible✕ No
Best forMarket research, liaison
How much does it cost?
Starting a company in Malaysia is significantly more affordable than Singapore or Hong Kong. Below are typical costs for a foreign-owned Sdn Bhd in 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 depending on your sector, visa requirements, and whether you use a consultant. Some sectors require higher minimum paid-up capital — speak to a specialist if you're unsure.
Malaysia Tech Entrepreneur Programme
Need to live in Malaysia while running your business?
The MTEP visa lets foreign entrepreneurs who've incorporated a Malaysian company legally reside and operate in Malaysia without a local employer.
1–5 yrsstay duration
RM 500K min. paid-up capital
4–8 wks corporate tax-rate
Ready to register your company in Malaysia?
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Frequently asked questions
Everything foreign entrepreneurs ask about starting a business in Malaysia.
Can a foreigner own 100% of a company in Malaysia?
Yes, in most sectors foreigners can own 100% of a Malaysian Sdn Bhd. Some regulated sectors — such as defence, primary agriculture, and certain retail activities — require a Malaysian partner. A consultant can advise on your specific sector’s ownership rules.
What is the minimum capital required to register a company in Malaysia?
For a standard Sdn Bhd, the minimum paid-up capital is just RM 1. However, foreign-owned companies in certain regulated sectors may be required to hold higher capital. For the MTEP business visa, a minimum paid-up capital of RM 500,000 is required at the time of application.
How long does company registration take in Malaysia?
Registration via SSM through the MyCoID portal typically takes 3–7 business days once all documents are submitted correctly. Using a licensed company secretary or registration firm can streamline the process and reduce the chance of delays due to incorrect documentation.
Do I need to be physically present in Malaysia to register?
No. You can register a Malaysian company remotely using a licensed company secretary as your authorised representative. However, you will generally need to be physically present in Malaysia to open a corporate bank account at most major banks.
What taxes does a foreign-owned company pay in Malaysia?
The standard corporate tax rate is 24%. SMEs with paid-up capital below RM 2.5 million pay just 17% on the first RM 600,000 of chargeable income. Labuan companies pay a flat 3% on audited net profits. There is no capital gains tax in Malaysia on most asset types.
What is the difference between an Sdn Bhd and a Labuan company?
An Sdn Bhd is a local private limited company operating within Malaysia, subject to the standard 24% corporate tax rate. A Labuan company is an offshore entity registered in Labuan federal territory, primarily for international business, with a flat 3% tax rate. Labuan companies cannot conduct retail or domestic consumer business within Peninsular Malaysia.