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How Long Does It Take To Incorporate a Company in Malaysia?

Malaysia's economy is expanding at an exceptional rate. Both foreign and domestic investors are contributing to the economy's growth. It is pretty easy for an Indian to register a company in Malaysia. The time taken to incorporate a company in Malaysia depends on the documents filed and the approval of the SSM.

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How Long Does It Take to Incorporate a Company in Malaysia?

The process of incorporating a company in Malaysia might take anywhere from 5 to 10 working days. However, several factors could affect the incorporation timeline:

  • Registering your company name with SSM
  • Malaysia company name selection process
  • Opening your corporate bank account in Malaysia

The Companies Commission of Malaysia or Suruhanjaya Syarikat Malaysia (SSM) is a board the government formed through the merging of the Register of Business (ROB) and Register of Companies (ROC). 

SSM’s purpose is to assist users with business and company registration, renewal, and rejection.

Company Incorporation in Malaysia

The process of setting up a company in Malaysia is simple and straightforward. The suffix Berhad appears in the names of companies that are registered as public limited companies (BHD). If a company is registered as a private limited company in Malaysia, it will have the suffix Sendirian Berhad after its name (SDN BHD). Therefore, if the applicant wants to proceed with the business registration process in Malaysia, the documents, as well as the prescribed procedure, must be considered.

Malaysia’s government has encouraged international investment in the country. As a result, the government permits a majority of foreign ownership in certain industries. This will enhance the quantity of foreign investment in the country if it is encouraged.

Before beginning the process of setting up a company in Malaysia, the applicant must evaluate all of the requirements in order to comply with Malaysian laws. The Companies Act of 2016 is the principal law that governs company registration in Malaysia.

Any applicant wishing to register a business in Malaysia must ensure that they meet the requirements of Section 14 of the Companies Act. If the company meets the condition, the register will take it into consideration.

Preferred Industries to Start Business in Malaysia

The following industries are booming in Malaysia for company registration. As a result, the above areas will probably get a lot of local government help.


The following are the most popular industries and sectors in which to start a company:

  • Education
  • Petroleum, oil and gas
  • Banking and Finance
  • Tourism outbound and ticketing
  • Agriculture.

How can a Foreign Company go for Company Registration in Malaysia?

An applicant has the option of setting up a new company in Malaysia or establishing a foreign company in Malaysia. As a result, an applicant can use one of the two methods to form a company in Malaysia. The SSM requires the registration of the following methods:

  • Incorporating a local company with the Companies Commission of Malaysia (SSM) or
  • Registering the foreign company in Malaysia with SSM.

Types of Company Registration in Malaysia

There are two types of companies that can be incorporated in Malaysia, according to the Malaysian Companies Act.

The companies incorporated in Malaysia are as follows:

Company Limited By Shares

A company with share capital can be formed as a private company (designated by the terms ‘SendirianBerhad’ or ‘Sdn Bhd’ appearing alongside the company’s name) or as a public company (identified by the words ‘Berhad’ or ‘Bhd’ appearing alongside the company’s name).

Private Limited Company

A private limited company is often formed with a limited amount of money. In the company, there are a minimum number of subscribers. The company must be established for the purpose of conducting legal business. A stock exchange will not allow such companies to list their shares

Public Limited Company

The purpose of forming a public limited company is to acquire public shares. A public limited company has a larger number of shareholders and directors.

Unlimited Company

An unlimited company can be formed as either a private or a public company. For an unlimited company, the liability of its members must be stated in the Memorandum of Association as unlimited.

Benefits of a Company Registration in Malaysia

The applicant enjoys the following benefits by incorporating a company in Malaysia:

  • In comparison to Singapore and other Asian countries, startup costs are quite low
  • Rental rates are similarly lower than in Singapore (and other Asian countries). Wages are also lower, with an average of $2.31 USD per hour, which is significantly less than in other countries
  • Malaysia has 68 double taxation treaties with other countries, therefore income earned in Malaysia is not subject to double taxation
  • Dividends paid outside of Malaysia are not subject to withholding taxes
  • Malaysian companies have no limits on resettling capital, profits, dividends, or royalties
  • Malaysia’s government has provided substantial incentives and subsidies to encourage the formation of businesses and capital investment.


Do you want to expand your business into Malaysia? Vakilsearch is the simplest way to establish your company in Malaysia. It takes months to study rules, analyse service providers, and negotiate rates before incorporating a company in Malaysia. Our experts can help you in overcoming this time-consuming process. Get started right away!

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