Malaysia has a lot going for foreign entrepreneurs: a strategic location in Southeast Asia, English widely spoken in business, and a company registration process that’s almost entirely online.
Even so, setting up from overseas raises plenty of questions. Can you own 100% of the company? Do you need a local director? How much capital is enough? In this guide, we answer all of these and walk you through Malaysia company registration for foreigners, from choosing a structure to opening your bank account.
In this article
Ways to set up a foreign company in Malaysia
There’s more than one way to establish a foreign company in Malaysia. The right one depends on what you plan to do here:
- Private limited company (Sdn Bhd): a new Malaysian company that you own. This is the most popular and flexible option, and the focus of this guide.
- Branch of a foreign company: your overseas company registers with SSM to operate here directly. The parent company stays liable for the branch.
- Representative or regional office: for market research and coordination only. It can’t trade or earn income, and needs approval from MIDA.
- Labuan company: a company in the Labuan international business centre, mainly for offshore and international activities.
For most foreign entrepreneurs who want to trade, hire staff and grow in Malaysia, an Sdn Bhd is the simplest and most practical choice.
Can foreigners own 100% of a company?
In most sectors, yes. A foreigner can be the sole shareholder of a Malaysian Sdn Bhd, and many foreign-owned companies are set up this way.
Some sectors do have limits. Regulated industries such as financial services, telecommunications and media can carry equity caps or need extra licences. And if your company will sell goods, a company that’s more than 50% foreign-owned needs a WRT license from KPDN, with its own capital requirements and list of restricted businesses. Check this before you register.
What you need for Malaysia company registration for foreigners
Under the Companies Act 2016, a Malaysian Sdn Bhd needs:
- At least one shareholder: an individual or a company, of any nationality
- At least one resident director: a person aged 18 or over whose principal residence is in Malaysia
- A company secretary: a licensed secretary appointed within 30 days of incorporation
- A registered office: a physical address in Malaysia
- Paid-up capital: as little as RM1 to register, though most foreign companies need more (see below)
The resident director rule surprises many founders. If you don’t live in Malaysia yet, you’ll need someone who does to sit on the board, at least until you relocate on an employment pass. Choose this person carefully, because directors carry legal duties and liabilities.
Your company secretary will also help you set up your registers and record your beneficial owners, which every new company must lodge with SSM.
How much capital do you need?
Legally, you can register an Sdn Bhd with RM1 of paid-up capital. In practice, a foreign-owned company usually needs much more, depending on its plans:
Typical paid-up capital for foreign-owned companies
| If you plan to | Typical paid-up capital |
|---|---|
| Register a company only | From RM1 |
| Hire foreign staff on employment passes | Often RM250,000 to RM500,000 |
| Sell goods (WRT license) | From RM1 million |
Immigration and KPDN set these thresholds and review them from time to time, so we confirm the current figures for your business before you inject capital.
It’s usually easier to set the right capital from the start than to increase it later, so think about whether you’ll need employment passes or a WRT license before you register.
Malaysia company registration for foreigners, step by step
Registration is done online through SSM’s MyCoID portal. Here’s how it works.
1. Choose and reserve a company name
Submit your preferred names on MyCoID. Approval usually comes within a working day, and the name is reserved for 30 days.
2. Prepare your details and documents
Gather passport copies for foreign shareholders and directors, IC details for your resident director, your registered address and a description of your business activities.
3. Lodge the incorporation application
Submit the application and pay the incorporation fee online. When everything is in order, SSM usually registers the company within a few working days.
4. Appoint your company secretary
Appoint a licensed company secretary within 30 days of incorporation. They’ll prepare your first resolutions and set up your statutory records.
5. Inject your paid-up capital
Once the bank account is open, transfer the capital and record the share allotment with SSM.
Good to know: opening a corporate bank account is often the slowest part for foreign-owned companies. Banks may ask to meet directors in person and will want to understand the business and its owners, so start early.
After incorporation
Registering the company is only the start. Depending on your business, your next steps may include:
- Opening a corporate bank account and injecting capital
- Confirming your company’s tax registration with LHDN
- Recording and lodging your beneficial owners with SSM
- Applying for a WRT license if you’re foreign-owned and selling goods
- Getting your business premise license from the local council
- Applying for employment passes for yourself and foreign staff
- Registering with EPF, SOCSO and EIS once you hire employees
Every company must also keep proper accounts, have them audited unless it qualifies for an exemption, and lodge an annual return with SSM. Our statutory audit and company secretarial teams can handle these for you.
Final thoughts
Malaysia company registration for foreigners is quicker and more straightforward than in many countries, but the details matter. Choose the right structure, plan your capital around your goals, and line up a resident director and company secretary before you start.
If you’d like a team to handle the whole process, from incorporation to licences and work passes, talk to us. We help foreign investors set up and stay compliant in Malaysia.
