Malaysia company formation for non-residents

Who a Malaysia company suits

A Malaysian Sdn. Bhd. suits businesses that will operate in Malaysia: selling to Malaysian customers, running a factory or warehouse, or hiring a team. It is an onshore company with Malaysian tax, audit and filing duties.

If you want a regional holding or trading company without Malaysian operations, a Labuan company, Singapore or Hong Kong may fit better. A Labuan company is a separate regime with its own 3% trading tax and substance rules. We compare them with you before you pay.

Foreign founders often pair a Sdn. Bhd. with a holding company elsewhere. The Malaysian company runs the local business, pays Malaysian tax and employs staff, while the holding company owns the shares.

Foreign ownership and sector rules

A foreigner or a foreign company can own 100% of a Malaysian company in many sectors, and a company can have a single shareholder. Manufacturing and many services are open to full foreign ownership.

Some activities have extra rules. Parts of distributive trade, such as retail and wholesale, follow ministry guidelines with capital and licence conditions for foreign-owned companies (confirm with your specialist). Regulated sectors such as finance, telecommunications and energy have their own licensing and equity limits.

Hiring foreign staff brings immigration rules that can set their own capital expectations. We check your activity and hiring plan before you pay, and flag any sector licence you need (confirm with your specialist).

If your activity needs a licence, the licence usually comes after incorporation and can take longer than the company itself. We build that step into your plan so you know when the company can start trading.

Directors, secretary and registered office

Under section 196(4) of the Companies Act 2016, a company must have at least one director who ordinarily resides in Malaysia, meaning their principal or only place of residence is there. The rule applies to the minimum number of directors; other directors can live anywhere.

A company secretary must be appointed within 30 days of incorporation. The secretary must be at least 18, a Malaysian citizen or permanent resident, and either licensed by SSM or a member of a prescribed professional body, with an SSM practising certificate.

The company also needs a registered office address in Malaysia. We provide the licensed secretary and registered office as part of your package, and arrange a resident director if you need one.

How registration works

Registration runs through MyCoID, SSM's online incorporation system. We search and reserve the name, prepare the incorporation file with the directors, shareholders and registered office, and file it once KYC is approved.

After registration, the company appoints a licensed secretary within 30 days, sets up its statutory registers and lodges its beneficial owners with SSM. Tax registration with HASiL and bank account applications follow.

From you we need a passport and proof of address for each director and shareholder, details of the resident director, and a short description of the business. For a corporate shareholder, we also need its incorporation documents and an ownership chart.

• Day 0: name search and activity check.
• Day 1–3: KYC approved and resident director confirmed.
• Week 1–2: company registered through MyCoID.
• Within 30 days: secretary appointed, registers set up, beneficial owners lodged.

Tax: 24% with SME rates

The standard corporate tax rate is 24%, as published by HASiL, the Inland Revenue Board of Malaysia. Qualifying small and medium companies pay 15% on the first MYR 150,000 of chargeable income, 17% on the next MYR 450,000 and 24% above that.

SME status requires paid-up capital of MYR 2,500,000 or less and gross business income of MYR 50,000,000 or less. Since the 2024 year of assessment, no more than 20% of the paid-up capital may be owned by foreign companies or non-Malaysian individuals. Most foreign-owned companies therefore pay 24%.

E-invoicing applies to Malaysian businesses in phases. Under HASiL's e-Invoice Guideline version 4.8 (August 2026), businesses with annual turnover below MYR 3,000,000 are exempt, unless a shareholder company, parent or related company reaches that figure. We confirm your position at sign-up.

Other taxes depend on your activity: sales and service tax on certain goods and services, withholding tax on some payments to non-residents, and payroll contributions for employees. We map these with you at the planning stage (confirm with your specialist).

Audit, annual return and beneficial owners

Every private company must appoint an auditor unless it qualifies for exemption. SSM Practice Directive 10/2024 exempts small companies that meet at least two of three limits on revenue, assets and employees, in the current year and the two years before it. Dormant companies have a separate exemption.

The limits rise in steps: MYR 1,000,000 revenue, MYR 1,000,000 assets and 10 employees for financial periods starting in 2025; MYR 2,000,000 and 20 employees for periods starting in 2026; and MYR 3,000,000 and 30 employees for periods starting on or after 1 January 2027.

The annual return is due within 30 days of each incorporation anniversary. Financial statements go to SSM within 30 days of being circulated to members, which in practice means within about 7 months of year-end. Since 1 April 2024, beneficial owners holding 20% or more, or with control, are lodged with SSM through e-BOS; the information is not public.

What you pay with OCC

Your year-1 package starts at US$1,299 all-in, with SSM registration fees, the licensed secretary and registered office included. From year 2 the renewal starts at US$520. Both figures are shown before you pay.

A resident director, bookkeeping, tax filing and the audit depend on your activity and size, so we quote them separately and up front. If we cannot incorporate your company, we refund the service fee (minus courier costs).

The renewal covers the annual return, the licensed secretary, the registered office and our compliance calendar. We send reminders before each SSM and HASiL deadline.