Set up a company in Malaysia as a foreign founder: cost, time and ownership
The usual company type for a foreign founder in Malaysia is the Sdn Bhd. Foreign ownership: The Companies Act 2016 stipulates no equity conditions; 100% foreign equity allowed for new manufacturing projects since June 2003, but sector approvals and licences may impose equity conditions. Minimum capital: None stated. Government fee: RM1,000 incorporation fee (name reservation and incorporation through direct registration).
The Sdn Bhd in Malaysia, from the official pages
| What | Detail | Source |
|---|---|---|
| Government fee | Direct registration (name reservation and incorporation): RM1,000. | ssm.com.my |
| Fee schedule | Statutory fee for incorporation under section 14 of the Companies Act 2016: RM1,000 for a company limited by shares. | ssm.com.my |
| Name reservation | Separate name reservation costs RM50 for every 30 days, up to 180 days. | ssm.com.my |
| Foreign ownership | The Companies Act 2016 sets no equity conditions on Malaysian-incorporated companies. | mida.gov.my |
| Sector limits | Equity conditions may still be imposed through specific approvals, operating licences, permits or registrations. | mida.gov.my |
| Manufacturing | Since June 2003 foreign investors may hold 100% of equity in new manufacturing projects (MIDA). | mida.gov.my |
| Local director | A director must have a principal or ordinary residence address in Malaysia. | ssm.com.my |
| Company secretary | The company secretary must be a Malaysian citizen or permanent resident who ordinarily resides in Malaysia. | ssm.com.my |
| Registered local address | The company must always have a registered office in Malaysia. | ssm.com.my |
| Online registration | The SSM4U account must be verified in person at an SSM counter or tap.it kiosk before filing online. | ssm.com.my |
| Corporate income tax | Small and medium companies (paid-up capital up to RM2.5 million, gross business income up to RM50 million): 15% on the first RM150,000, 17% on RM150,001 to RM600,000, 24% on the balance; other companies 24% (table headed Year Assessment 2023 to 2024). | hasil.gov.my |
| Annual compliance | Annual return to SSM within 30 days of the company's incorporation anniversary date. | ssm.com.my |
Questions founders ask about Malaysia
- Can a foreigner own 100% of a company in Malaysia?
- The Companies Act 2016 stipulates no equity conditions; 100% foreign equity allowed for new manufacturing projects since June 2003, but sector approvals and licences may impose equity conditions.
- What is the minimum capital for a company in Malaysia?
- None stated.
- How much does it cost to register a company in Malaysia?
- RM1,000 incorporation fee (name reservation and incorporation through direct registration).
- Do I need a local director in Malaysia?
- Yes: a director must have a principal or ordinary residence address in Malaysia; the company secretary must be a Malaysian citizen or permanent resident ordinarily resident in Malaysia.
- Can I register a company in Malaysia from abroad?
- Online through SSM4U, but the user account must be verified at an SSM counter or tap.it kiosk.
- What is the corporate tax rate in Malaysia?
- 24%; companies with paid-up capital up to RM2.5 million and gross business income up to RM50 million pay 15% on the first RM150,000 and 17% on RM150,001 to RM600,000.
Other countries
Australia · Colombia · Cyprus · Estonia · Georgia · Hong Kong · Indonesia · Ireland · Malta · Mexico · Netherlands · Philippines · Portugal · Singapore · Spain · Thailand · United Arab Emirates · United Kingdom · Vietnam
To weigh the choice, read where to incorporate as a remote founder.
- Company type
- Private company limited by shares (Sdn Bhd), incorporated with SSM through the MyCoID / SSM4U portal
- Foreign ownership
- The Companies Act 2016 stipulates no equity conditions; 100% foreign equity allowed for new manufacturing projects since June 2003, but sector approvals and licences may impose equity conditions
- Minimum capital
- None stated
- Government fee
- RM1,000 incorporation fee (name reservation and incorporation through direct registration)
- Local director
- Yes: a director must have a principal or ordinary residence address in Malaysia; the company secretary must be a Malaysian citizen or permanent resident ordinarily resident in Malaysia
- Register from abroad
- Online through SSM4U, but the user account must be verified at an SSM counter or tap.it kiosk
- Corporate tax
- 24%; companies with paid-up capital up to RM2.5 million and gross business income up to RM50 million pay 15% on the first RM150,000 and 17% on RM150,001 to RM600,000
- Official page
- ssm.com.my
- Checked
Fees, capital rules and timings change. Check ssm.com.my before you register, and get a written quote from any agent you use. Spotted something out of date? Tell us in the members' chat.