Welcome to your comprehensive overview on registering a foreign company in Malaysia. Whether you’re planning to expand your business operations or explore new market opportunities, Malaysia offers an attractive business environment with its strategic location, business-friendly policies and robust legal framework.
Let’s explore your options for establishing a business presence in this dynamic Southeast Asian market.
Understanding Your Business Structure Options
When entering the Malaysian market, you’ll need to choose the right business structure that aligns with your objectives.
Let’s explore each available option to help you make an informed decision.
1. Private Limited Company (Sdn Bhd)
The preferred choice for most foreign investors, offering:
- Complete foreign ownership permitted in most sectors
- Limited liability protection for shareholders
- Clear separation of personal and business assets
- Enhanced credibility with local partners and customers
- Flexibility in capital raising and business expansion
Note: Some strategic sectors like banking, education and oil & gas require minimum Malaysian ownership participation.
2. Branch Office
A direct extension of your overseas operations that:
- Operates as an integral part of your parent company
- Conducts identical business activities to your parent company
- Requires appointment of a Malaysian resident agent
- Maintains full parent company liability
- Suits medium-term market expansion strategies
3. Representative Office
Perfect for initial market exploration:
- Undertakes comprehensive market research
- Coordinates regional business activities
- Oversees product promotion initiatives
- Plans future business expansion
- Cannot engage in direct profit-generating activities
4. Labuan Offshore Company
Specialised structure for international operations:
- Allows 100% foreign ownership
- Features minimal capital requirements
- Benefits from attractive tax framework
- Focuses on international trading activities
- Maintains efficient compliance structure
5. Limited Liability Partnership (LLP)
Combines partnership flexibility with corporate benefits:
- Operates as an independent legal entity
- Provides asset protection for partners
- Allows flexible internal arrangements
- Features streamlined compliance requirements
- Offers cost-effective operational structure
6. Partnership
Ideal for professional service providers:
- Accommodates 2-20 partners
- Available to permanent residents
- Partners share both profits and liabilities
- Features straightforward management structure
- Individual partner taxation applies
7. Sole Proprietorship
Accessible to permanent residents:
- Provides complete operational control
- Features straightforward compliance requirements
- Requires annual SSM renewal
- Owner assumes full business liability
- Minimal regulatory obligations
Tips on choosing a foreign company registration agency in Malaysia >>
Making Your Structure Selection
When choosing your business structure, consider these essential factors:
- Immediate and long-term business objectives
- Available investment capital
- Industry-specific regulations and requirements
- Tax implications and available incentives
- Desired level of operational control
- Market entry strategy and timeline
- Growth and expansion plans
Navigate the complexities of Malaysian business incorporation effortlessly with our expert-crafted “Register a SDN BHD” tutorial series, covering everything from incorporation costs to legal requirements >>
Industry Requirements for Foreign Companies
Keep in mind that each industry has its specific requirements and regulations. We recommend speaking to an expert to verify current requirements for your specific sector before proceeding with your business setup.
Here we will highlight some notable industry requirements and practical steps you’ll need to consider.
Manufacturing Sector
To establish your manufacturing presence:
- Submit your application to MIDA (Malaysian Investment Development Authority)
- Ensure you meet industry-specific investment thresholds
- Plan your workforce to meet local-to-foreign employee ratios
- Secure necessary manufacturing permits
Financial Services
For banking and financial operations, you’ll need to:
- Coordinate with Bank Negara Malaysia for approvals
- Meet enhanced capital requirements
- Establish robust risk management systems
- Align with Malaysian banking standards
Tourism Industry
When entering the tourism sector:
- Complete Ministry of Tourism registration
- Acquire relevant operational permits
- Meet industry safety standards
- Follow tourism-specific regulations
Other Industry-Specific Requirements
| Sector | Key Requirements |
|---|---|
| Oil & Gas | Local partnership + specialist licensing |
| Telecommunications | Industry permits and approvals |
| Utilities | Malaysian partnership arrangements |
| Education | Ministry of Education clearance |
- Many strategic industries require 30-51% Malaysian ownership
- Government projects often require Bumiputera participation
- Certain activities may need additional approvals
Remember: Different industries have different requirements, always verify the current regulations for your specific sector before proceeding.
The Foreign Company (Sdn Bhd) Registration Process: Overview
Let’s walk through how to register your foreign company (Sdn Bhd) in Malaysia. We’ve created a straightforward roadmap to help you navigate each stage efficiently.
Before You Begin: Essential Requirements
To start your registration journey, you’ll need to arrange:
- A qualified Malaysian company secretary (must be locally resident)
- At least one director who resides in Malaysia
- A registered Malaysian auditor for your accounts
- A registered office address within Malaysia
Your Registration Journey
Step 1: Securing Your Company Name
Start by reserving your business name:
- Use the SSM online portal to submit your proposed name
- Pay RM50 for the application
- Expect a response within 1-2 business days
- Once approved, you have 30 days to complete registration
Step 2: Preparing Your Documentation
Gather these key documents:
- Detailed information about your shareholders and directors
- A certified copy of your company’s incorporation certificate
- Your parent company’s constitutional documents
- Certified translations if your documents aren’t in English or Bahasa Malaysia
- Properly certified agent appointment papers
Step 3: Submitting Your Registration
Your registration fee depends on your share capital:
| Share Capital (RM) | Fee (RM) |
|---|---|
| Up to 1 million | 5,000 |
| 1-10 million | 20,000 |
| 10-50 million | 40,000 |
| Above 50 million | 60,000 |
If your company doesn’t have share capital, you’ll need to pay RM70,000
Managing Your Registration Online
You’ll work with three main SSM platforms:
- MyCoID – For completing your registration
- SSM e-info – For managing company documents
- MBRS – For handling your statutory obligations
Getting Your Business Up and Running
Banking Setup
Prioritise these banking arrangements:
- Set up your Malaysian corporate accounts
- Establish your payment processing systems
- Arrange any necessary banking facilities
Launch Preparations
Essential steps for your business launch:
- Obtain all required industry licences
- Set up robust compliance monitoring
- Establish proper record-keeping systems
- Create your operational framework
Staying Compliant
Keep track of these ongoing requirements:
- Regular statutory submissions
- Annual returns filing
- Financial statement preparations
- Continuous compliance monitoring
Focus on establishing your business and let Altomate guide you through Malaysia’s compliance requirements. Start by fast-tracking your foreign company registration with Altomate’s Company Incorporation & Company Secretary Package, offering a fully online, expert-guided registration completed in just 3 days >>
Ready to Launch Your Business in Malaysia?
Registering a foreign company in Malaysia offers exciting opportunities for growth and expansion. By understanding the available business structures, industry-specific requirements, and registration processes, you’re well-equipped to make strategic decisions for your venture.
