Company Registration in Malaysia 2018-07-13T06:22:59+00:00

Company Registration in Malaysia


  • No limit for registered capital

  • local partnership not required

  • Allowance of Complete Foreign Ownership

  • Allowance of Joint venture registration

  • Complete Malaysian market entry strategy

Company Registration

Company Registration in Malaysia

Company registration in Malaysia is quite an easy process. You can lay the foundation of a company in Malaysia with 100% foreign ownership. It is known as Sendirian Berhad. Although the government has listed only some specific industries for the company to work under 100% foreign ownership.

Following are preferred industries to start a business:

  • Education
  • Petroleum, Oil, and Gas
  • Banking and Finance
  • Tourism Outbound and Ticketing
  • Agriculture

Following are the ways in which a foreign company can start a business in Malaysia:

  • merging with a local company under Companies Commission of Malaysia (SSM)
  • register the foreign company in Malaysia with SSM

Benefits of a Company Registration in Malaysia in comparison with other countries

  • Low Start-up Costs
  • Reduced rental rates
  • Low Wages i.e. average wages are $2.31 USD per hour.
  • If any dividend is paid outside of Malaysia than there will be No Withholding Taxes.
  • 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.

Type of Business Entities in Malaysia

According to the Malaysian Companies Act, only two types of Companies can assimilate in Malaysia.

  • A company limited by shares
  • An unlimited company

Company Limited By Shares :

A company with limited share capital can incorporate as the private or public company. A private company is known as ‘SendirianBerhad’ or ‘Sdn. Bhd.’ and ‘Berhad’ or ‘Bhd’ if it is a public company.

Unlimited Company :

An unlimited company provides the members with unlimited liability. It also can incorporate as a private or a public company. The Memorandum of Association shows the liability of its members.

Basic Requirement for Company Registration in Malaysia

  • minimum of two subscribers and directors
  • A company secretary who will be the member of a professional body by the Minister of Domestic Trade Cooperative and Consumerism. A company secretary has been given license by the government to encourage  the Companies Commission of Malaysia (SSM)
  • The proposed director and company secretary in a Malaysian company shall have their principal or only place of residence within Malaysia.

Steps of Company Registration in Malaysia

1. Select an appropriate 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 convenient name and file the name application form. SSM does the name approval depending on the availability of the proposed name. The name shall reserve for three months from the date of approval.
  • All the incorporation documents need to file with SSM within 3 months from the date of approval of the company’s name. In case of failure, they need to submit a fresh application to SSM.

2. Memorandum and Article of Association i.e. MoA and AoA need a submission with 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 share are also required to sign the MoA & AoA in the presence of a witness.

For the private company, AoA shall contain the following conditions:

  • A hurdle in the right to transfer the company’s shares
  • Limit on having the maximum number of members
  • Restriction on inviting the public to subscribe the shares/debentures of the company
  • Prohibition on the public invitation to deposit money with the company.

3. The director or the promoter gives a statutory declaration. It states that he/she is not bankrupt. Also, he/she has never been under the influence of any unlawful offense.

4. Company secretary should sign the Declaration of Compliance. It states that all the requirements of Companies Act have been adhering to.

5. Other documents include a copy of the letter from SSM which approves the name of the company and a copy of the identity proof of each of the director and company secretary.

Certificate of Incorporation

After the compliance with the incorporation procedure and submission of the duly completed Incorporation Documents with the prescribed fee. The SSM issues a Certificate of Corporation.

The company shall get the license/permit/approval from the concerning authority before starting the business activity mentioned in MoA.

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


Reach Us

For any help at any stage of company registration in Malaysia, one can contact LegalRaasta.