Malaysia
Company Formation in Malaysia
Malaysia
Overview
Malaysia is a dynamic Southeast Asian economy strategically located along key global trade routes, with a population of 33 million and a GDP exceeding USD 400 billion. The Sdn Bhd (Sendirian Berhad / Private Limited Company) is the standard vehicle for foreign businesses, registered through SSM with a minimum paid-up capital of just RM 1. Malaysia offers a 24% standard corporate tax rate, with reduced rates for SMEs (17% on the first RM 600,000). The country is a global leader in Islamic finance and home to the Labuan IOFC, which provides a 3% or RM 20,000 flat tax for trading activities. With 75 double tax treaties and a bilingual (Malay/English) business environment, Malaysia is a cost-effective base for businesses targeting ASEAN.
Why Choose Malaysia
Strategic ASEAN location with excellent connectivity
RM 1 minimum paid-up capital for Sdn Bhd
24% corporate tax; 17% SME rate on first RM 600,000
Labuan IOFC — 3% or RM 20,000 flat tax for offshore trading
75 double tax treaties
World's leading Islamic finance hub (sukuk, takaful)
Bilingual workforce (Malay and English widely spoken)
Cost-effective operations compared to Singapore and Hong Kong
Business Entity Types
| Entity | Ownership | Directors | Capital | Tax | Best For |
|---|---|---|---|---|---|
| Sdn Bhd (Private Limited Company) | 100% (in most sectors) | 1 (must be Malaysian resident) | RM 1 minimum paid-up capital | 24% standard; 17% on first RM 600,000 for SMEs | Most foreign businesses — trading, manufacturing, services, tech |
| Labuan Company | 100% | 1 (any nationality) | No minimum | 3% of net audited profit or RM 20,000 flat (trading); 0% for non-trading (holding) | International trading, holding companies, IP licensing, offshore operations |
| Bhd (Public Limited Company) | 100% | 2 (both Malaysian residents) | No minimum | 24% standard rate | Companies seeking Bursa Malaysia listing |
| Branch Office | 100% | 1 local agent | None | 24% on Malaysian-sourced income | Foreign companies extending operations to Malaysia |
| Representative Office | 100% | 1 representative | None | No commercial activity — not subject to tax | Market research, promotion, liaison activities |
Step-by-Step Formation Process
Name Search & Reservation
1 daySearch and reserve company name via SSM's MyCoID 2016 portal. Reservation valid for 30 days.
Super Form Filing
1–3 business daysFile the 'Super Form' incorporation application via MyCoID, including constitution, director details, and share structure.
SSM Registration
Included in Step 2SSM issues a Notice of Registration (Section 15) and Business Registration Number.
Tax Registration
1–2 weeksRegister with Inland Revenue Board (LHDN) for corporate tax. Register for SST if applicable.
Bank Account Opening
1–2 weeksOpen a corporate bank account. Most banks require the resident director to attend in person.
Costs & Fees
| Government / License Fee | MYR 1,000+ |
| Our Service Fee | USD 2,500+ |
| Annual Renewal | USD 1,500+ |
Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.
Get Custom QuoteBanking
Malaysia has a well-developed banking sector. Maybank, CIMB, and Public Bank are leading domestic banks. HSBC and Standard Chartered serve the international community. Islamic banking options are widely available.
Recommended Banks
Tax Overview
Malaysia operates a single-tier tax system — dividends are tax-free to shareholders. Pioneer Status and Investment Tax Allowance provide significant incentives for manufacturing and high-tech.
Visa & Residency
Employment Pass (EP)
1–5 years, renewableCategories 1 (>RM 10,000/month), 2 (RM 5,000–10,000), and 3 (RM 3,000–5,000).
Professional Visit Pass (PVP)
Up to 12 monthsFor short-term professional assignments.
Malaysia My Second Home (MM2H)
5–10 years, renewableLong-term social visit pass. Requires financial thresholds.
DE Rantau (Entrepreneur Pass)
1 year, renewableFor digital nomads and tech entrepreneurs.