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How does the Incorporation of a company in Malaysia work?

Incorporating a company in Malaysia provides for 100% foreign ownership at one of the
lowest fee for company incorporation, in the world.

Company Incorporation in Malaysia - An Overview

Company registration in Malaysia is a very simple and easy process. One can incorporate a company in Malaysia with 100% foreign ownership. The company is known as Sendirian Berhad. Although the government has listed only few specific industries for the company to work under complete foreign ownership.

A foreigner can start business in Malaysia by either merging with a local company or by registering the foreign company in Malaysia with Companies Commission of Malaysia.

Following are preferred industries to start a business in Malaysia:

  • Agriculture
  • Banking and finance
  • Petroleum, Oil and gas
  • Tourism Outbound and Ticketing
  • Education

As per the Malaysia laws, only two types of Companies can incorporate in Malaysia.

  • A company limited by shares.
  • An unlimited company.

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Benefits of incorporating a company in Malaysia

Some are the factors which make Malaysia the leading destination in the world for business owners are mentioned below.

  • Start up costs in Malaysia are one of the lowest in the world.
  • Reduced rental rates.
  • Low Wages i.e. average wages is $2.31 USD per hour.
  • If any dividend is paid outside of Malaysia than there will be No Withholding Taxes by the government.
  • No restrictions on Malaysian corporations upon repatriation of capital, profits, dividends, and royalties.
  • Strong incentives and subsidies are given to encourage the business formation and capital investment by the government.

What are the key requirements of company registration in Malaysia?

Subscribers and Directors - A minimum of 2 subscribers and directors are mandatorily required for registering a company in Malaysia.

Company Secretary - A company needs to appoint a company secretary who is a member of the professional body by the Minister of Domestic Trade Cooperative and Consumerism and should be licensed by the Companies Commission of Malaysia (SSM).

Principal place of residence - The proposed director and company secretary in a Malaysian company shall have their principal or only place of residence within Malaysia.

How to register a company in Malaysia?

1. Application for name of the company - Select a proper name for the company and then check its availability. To check the availability of company name one needs to refer to Government Gazette, which gives the guidelines regarding the name and application of a company name.

The steps involved in filing a name availability application are:

  • Choose a name and file the name application form. SSM does the name approval depending on the availability of the name. The name is reserved for three months from the date of approval.
  • All the incorporation documents need to filed with SSM within 3 months from the date of approval of the company’s name. In case of failure, a fresh application has to be submitted.

2.MoA and AoA have to be submitted to SSM. The Inland Revenue Board affixes the official stamp. The MoA & AoA should have details of directors and secretaries. The subscribers of the company’s shares are also required to sign the MoA & AoA in the presence of a witness.

3. The director or promoter have to submit a declaration stating the he/she is not bankrupt and has no criminal record.

4. The Company secretary should sign the Declaration of Compliance stating that all the requirements of the Companies Act have been adhered to.

5.Identity proof of directors.

6. Company name approval letter from SSM.

After compliance with the procedure and submission of the duly completed Documents with the prescribed fee the SSM issues a Certificate of Corporation. The company shall get the permit from the concerned authority before starting the business activity mentioned in MoA.

Note:All the documents need to be either in Malay or English Language.

Why Vakilsearch?

4 Business Days

At Vakilsearch, we can deliver all your documentation requirements in just four working days. And if you're not totally satisfied, we'll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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