Company registration in Malaysia: A complete guide for foreign entrepreneurs

You may be exploring growth, looking to expand your regional presence, or preparing to serve customers across Asia. Whatever your motive, understanding the steps involved in company registration in Malaysia helps you plan well. This guide walks you through the available business entity options, how to register a company in Malaysia, and what foreign entrepreneurs need to know before starting the process.

Why set up a company in Malaysia?

Malaysia offers a combination of accessibility, competitive operating costs, and strong links to surrounding markets. You benefit from clear regulatory frameworks, established financial services, and a growing digital economy. If you plan to serve customers in Southeast Asia, a company incorporated in Malaysia can give you direct reach into nearby markets such as Singapore, Thailand, Indonesia, and Vietnam.

You also gain from Malaysia’s banking and fintech ecosystem. Services that support international payments, multi-currency settlement, and cross-border operations make it simpler for you to run regional activities. Many global merchants use Malaysia as a base for both physical and online commerce.

Business entity types in Malaysia

You can choose from several types of business entities when planning your business registration. Malaysia allows business to be carried on as:

• Sole proprietor
• Partnership
• Locally incorporated company
• Foreign company (branch)
• Limited Liability Partnership (LLP)
  
  

These options are outlined in MIDA’s "Establishing Your Business Presence in Malaysia" booklet. While they offer flexibility, not all structures are open to non-residents. Sole proprietorship and partnership structures can only be owned by Malaysian citizens or permanent residents. This rule means that foreign or global entrepreneurs need to focus on options that allow international ownership.

The most realistic structures for a foreigner are:

• Locally incorporated company – usually a private limited company (Sendirian Berhad or Sdn. Bhd.) registered through the Companies Commission of Malaysia (SSM).
• Foreign company (branch) – a company registered in Malaysia under section 562 of the Companies Act 2016.
• Labuan company – commonly used for international or offshore business structures, regulated by the Labuan Financial Services Authority.
  
  

Each route has different implications for ownership, reporting, and compliance. A local Sdn. Bhd. is the most common choice for entrepreneurs planning long-term operations in Malaysia.

Eligibility and key requirements for foreign entrepreneurs

Core requirements for incorporating a local company (Sdn. Bhd.)

A Sdn. Bhd. is governed by the Companies Act 2016 and regulated by SSM. To register this type of company in Malaysia, you need:

• Directors – at least one director who ordinarily resides in Malaysia and has a principal place of residence in the country.
• Members or shareholders – at least one shareholder. Foreign shareholders are permitted subject to sector-specific rules.
• Company secretary – you must appoint a qualified company secretary with a principal residence in Malaysia within 30 days of incorporation.
• Registered office – you must provide a registered office address in Malaysia. This address is used for statutory records and official communication.

Basic requirements to register a foreign company (branch)

If you prefer to register a foreign company rather than incorporate locally, the Companies Act 2016 requires you to provide:

• Appointment of a local agent (individual or body corporate).
• Certified copies of foreign incorporation documents and the company’s constitution.
• Certified translations, if any document is not in English or Bahasa Malaysia.
• Full details of shareholders, directors, registered office, and business address in Malaysia.
• A clear description of planned business activities.
  
  

How to incorporate a Malaysian Sdn. Bhd. via MyCoID

Prepare the required information and documents

Before starting the application, prepare:

• Proposed company name and backup options.
• Type of company – private company limited by shares.
• Principal business activities using the MSIC code.
• Registered office and business address in Malaysia.
• Information on each director and promoter.
• Required declarations by directors and promoters.
• A company constitution, if you choose to adopt one (optional for Sdn. Bhd.).
  
  

Foreign entrepreneurs also commonly provide passport copies, proof of residential address, and basic KYC information to meet professional firm requirements.

Create a MyCoID 2016 account

You must create an account on the MyCoID 2016 portal. All applications, payments, and approvals are managed through this system. 

The registration process is straightforward, and you verify your identity through the portal before gaining access to incorporation features. Having an account also allows you to track application status and receive updates directly.

Reserve your company name

To secure your preferred name:

• Check the guidelines by SSM on company names.
• Conduct a name search and submit the application through MyCoID.
• Pay the RM50 fee per name.
• Once approved, the name is reserved for 30 days.
• You can extend the reservation in 30-day blocks up to 180 days.
  
  

Submit incorporation application (Super Form)

You can choose between:

• Direct incorporation in a single step.
• Reserving the name first, then submitting the incorporation application.

The official incorporation fee for a Sdn. Bhd. is RM1,000. You will complete details on shareholders, directors, capital, and addresses.

After approval: registration notice and first 30 days

Once approved:

• SSM issues a Notice of Registration as proof of incorporation.
• You can request a certificate of incorporation for an additional fee.
• Within 30 days, you must appoint a company secretary and ensure statutory records are kept at the registered office.
  
  

How to register a foreign company (branch) with SSM

A branch gives your parent company direct presence in Malaysia without creating a separate legal entity.

Decide if a branch is right for you

A branch is not separate from its parent, meaning the parent company remains fully liable for activities in Malaysia. Some industries and financial institutions may prefer a locally incorporated Sdn. Bhd. because of the clearer structure and local governance.

Name search and reservation

As with a Sdn. Bhd., you must reserve a name for the branch. The name must match the foreign company’s registered name in its home country. 

You submit the reservation request through the online SSM system, and approval usually arrives promptly once the documents align with naming rules. Many foreign companies check for potential conflicts in advance to avoid delays.

Compile required documents and information

Prepare:

• Certified copy of the certificate of incorporation.
• Certified copy of the constitution or equivalent.
• Details of shareholders and members.
• Information on directors, both in Malaysia and overseas
• Registered office and business address in Malaysia.
• Business activities and MSIC codes.
• Details of the local agent.
• Certified translations when needed.
  
  

Submit application and pay fees

After name approval, you have 30 days to submit the branch registration application. The official fees vary according to share capital brackets. Once approved, SSM issues a notice of registration of a foreign company.

Ongoing compliance and annual obligations

Whether you establish a Sdn. Bhd. or register a foreign branch, you must maintain proper records and meet annual filing requirements.

Both entity types must:

• Maintain accurate accounting records.
• Prepare financial statements and conduct audits where required.
• File annual returns and financial statements with SSM.
• File corporate income tax with LHDN.
• Register for SST when applicable.
• Submit EPF and SOCSO contributions for employees.
  
  

Practical tips for foreign and global entrepreneurs

• If you do not have a local resident director, many foreign investors work with corporate service firms that offer nominee director or company secretary support. This is common practice.
• A Sdn. Bhd. offers a predictable cost structure: RM1,000 incorporation fee plus RM50 for name search.
• Foreign company registration has a higher fee range linked to share capital.
• Check immigration rules early, especially if your directors or key staff require work visas.
• Plan your banking arrangements early to support company incorporation and operational requirements.
  
  

Conclusion

By understanding how the local system works, you can set up a company that supports your commercial goals. With a clear overview of the incorporation process and ongoing responsibilities, you are better placed to begin your expansion into Malaysia.

Before closing your planning phase, take a moment to check whether your intended activities require sector approvals, as this can influence timing. It also helps to confirm how your chosen structure fits with your long-term plans for hiring, taxation, and regional operations. These final checks can save you from unnecessary adjustments later and give you a smoother start once the company is fully registered.