Malaysia Company Incorporation

Malaysia offers a compelling environment for business operations with its British-based legal system, government support for Small and Medium Enterprises, robust infrastructure, and widespread use of English. Malaysia is also a global economic powerhouse and received an outstanding score of 12 from the World Bank in 2019 for ease of doing business. Due to Malaysia's strategic location, business-friendly policies, and growing economy, it makes a prime spot for launching your company in Southeast Asia.

Malaysia companies can be divided into the below categories

• Private limited company (Sdn Bhd) is the most common type of entity for foreign investors. Sdn Bhd can have between 1 to 50 shareholders and is required to appoint at least one director and one shareholder. This structure is ideal for small to medium-sized businesses
• Public Limited Company (Berhad or Bhd) can issue shares to the public and list them on the stock exchange. It has a larger scope for raising capital compared to a private limited company
• Sole Proprietorship is owned and operated by a single individual
• Partnership, it has two or more owners and a maximum of 20 owners. Only Malaysian citizens and permanent residents are allowed to register

Advantages

• Low corporate tax rates (companies with paid-up capital less than RM2.5 million are taxed 15% on the first RM150,000, 17% on the next RM450,000 and 24% in excess of RM600,000)
• Strategically placed in Southeast Asia
• No restrictions on foreign shareholding
• Low operating cost
• Governed by a stable political climate and legal system; and
• Malaysia offers many incentives for new business ventures and capital investment

Registration requirements

• Minimum RM1 paid-up capital
• At least one local director (can be provided by Conpak)
• At least one natural person / corporate shareholder with no nationality limitation
• One local company secretary who is licensed by Suruhanjaya Syarikat Malaysia ("SSM") or a member of any professional body in Malaysia (can be provided by Conpak); and
• A local registered address (can be provided by Conpak)

Timeline for incorporation

The timeline to set up a Private Limited Company are as follows:

• Name search and get approval with SSM
• Prepare and submit all necessary registration documents for application
• Appoint a company secretary within 30 days of business incorporation
• Upon approval, Certificate of Incorporation is issued by SSM; and
• Post registration: Opening a corporate bank account, obtain business licenses and/or permits, registering for the provident fund, appointing auditors and determining your tax liabilities.

The registration of a company in Malaysia takes 1 week upon receiving of all required documents and due diligence has passed.

Required information

• Company English / Malay name ending with a suffix Sendirian Berhad or Sdn. Bhd
• Original copies of ID cards or passports of shareholders and directors, or certified copy by certified public accountants, lawyers and notaries; and
• Original copies of proof of address for the last 3 months (such as bank statements, utilities bills, gas bills etc) or certified copy by certified public accountants, lawyers and notaries

Should you have any enquires about Malaysia Company Incorporation, please complete the form below and we will reply to you soon.