Company Registration
in Malaysia: Clear, Easy & Practical Guide

How to Register a Company in Malaysia?

Step by step Malaysian company registration process.

The first step to register a new company in Malaysia is to choose a name. The Companies Commission of Malaysia (SSM) is the regulatory body that oversees company names.

They have specific rules to ensure that each company name is distinct. Your chosen name must not be identical or too similar to any existing company names. There are certain words that you cannot use in your company name also. For example, words such as "bank" and "insurance" are prohibited unless you get special approval from the authorities.

Once you have a name in mind, you need to reserve it. To do this, the company secretary will fill out Form 13A provided by the official company registry in Malaysia.

After submitting the form, your name reservation will be valid for 30 days. You can extend the reservation for another 30 days if you need more time for company incorporation.

To register a new company in Malaysia, you will need to gather several key documents and information, including:

After that, officially register your company with the Companies Commission of Malaysia. Company registration in Malaysia can be conducted in any SSM office or online.

Online Registration Process

This is the official online platform for registering companies in Malaysia. Company Secretary (Cosec) will need to create an account in this portal if he does not have it.

Check out this YouTube video to learn how to create an account in
MyCoID.
https://youtu.be/vfC0gSQPaiE?si=lZf7TCAqKCuzToiz

Once you have submitted the Superform, you need to pay the company registration fees to complete the company incorporation process in Malaysia. These fees are set by SSM.

Then, you will receive an email from the SSM containing the Notice of Registration. This is the official proof that your company has been legally incorporated in Malaysia.

Open a Corporate Bank Account

To run the business successfully, you'll need to open a corporate bank account in Malaysia. Some recommended local banks include:

However, local banks have strict rules for foreign shareholders. If you're a foreigner wanting to open an account at a local bank, you must have a valid work permit in Malaysia or appoint a Malaysian nominee director.

On the other hand, international banks like HSBC and Citibank allow foreign companies to open business accounts under specific terms and conditions.

Initial Deposit Requirements

Documents Required

How to Register a Business in Malaysia?

Business registration in Malaysia varies depending on the business structure.

Sole Proprietorship

Registration Requirements

• Business Name: If you are using the owner's personal name as shown on the identity card, you do not need any prior approval. However, if you want to use a trade name, you will need to get approval from the Registrar of Business.
• Required Documents:

• A photocopy of the owner's identity card. The photocopy should show both the front and back side of the identity card.
• A completed Business Registration Form. It should include:

Registration Fees

• RM 30 per year for a business using the owner's personal name.
• RM 60 per year for a business using a trade name.
• RM 5 per year for each branch.
• RM 10 for a business information printout.

Registration Channels

• In-Person: At any Companies Commission of Malaysia counter.
• Online: Via the official EzBiz website.

Partnership

Registration Requirements

• Business Name: Partnerships need to operate under a trade name and cannot use personal names. You must get approval for the chosen trade name from the Registrar of Business.
• Required Documents:

• Photocopies of all partners' identity cards.
• A completed Business Registration Form
• A partnership agreement that outlines the terms and conditions agreed upon by the partners.

Registration Fees

• RM 60 per year for the trade name.
• RM 5 per year for each branch.
• RM 10 for a business information printout.

Registration Channels

• In-Person: At any Companies Commission of Malaysia counter.
• Online: Via the official EzBiz website.

Verification via EzBiz Online Portal

After you submit the business registration application, all partners will get an email notification asking them to verify the application on the EzBiz Online portal.

Each partner needs to complete this verification before payment can be made and the application can be processed. If any partner isn’t an active EzBiz Online user, the registration for the partnership cannot continue.

Limited Liability Partnership

Registration Requirements

• Business Name: The proposed name for your LLP must be approved by SSM. You can submit your application through the MyLLP portal or at an SSM office.
• Required Documents:

• LLP Registration Form, which should include:

• A Declaration of Compliance signed by a company secretary, lawyer, or chartered accountant.
• If any partner is a corporate entity, you may need to include additional documents, like board resolutions.

Registration Fees

• RM 500 is the standard registration fee for all LLPs.

Registration Channels

• In-Person:At any SSM counter.
• Online:Through the MyLLP portal.

How Much to Register a Company in Malaysia?

Starting your business in Malaysia involves several costs, including:

Name Search Fee

• Cost: RM 50

This fee is paid to check the availability of your desired company name through the Companies Commission of Malaysia.

Company Registration Fee

• Private Limited Company: RM1,000
• Public Limited Company: RM1,000
• Foreign Company:

1. Without share capital: RM70,000
2. With share capital:

1. If your share capital is up to RM 1,000,000, the fee is RM 5,000.
2. For share capital over RM 1,000,000 but not exceeding RM 10,000,000, the fee is RM 20,000.
3. If your share capital is over RM 10,000,000 but not exceeding RM 50,000,000, the fee is RM 40,000.
4. For share capital over RM 50,000,000 but not exceeding RM 100,000,000, the fee is RM 60,000.
5. If your share capital is over RM 100,000,000, the fee is RM 70,000.

Company Secretary Fee

• Cost: Typically RM 600 to RM 1,000 per year

A registered company must appoint a company secretary. This fee covers their services for compliance and regulatory requirements.

Business License Fee

Typically, the fees for obtaining these licenses depend on the state where you're operating your business, the size and nature of your business, and other relevant factors. For a general idea about the cost, check out this table.

Then, you will receive an email from the SSM containing the Notice of Registration. This is the official proof that your company has been legally incorporated in Malaysia.

1. SFM Consulting Firm Sdn Bhd

Since 2012, SFM Consulting Firm Sdn Bhd has been helping both locals and foreigners with company formation in Malaysia. We offer a variety of services like:

In the past 12 years, we have had the pleasure of working with over 400 clients in Malaysia and 7,000 from around the world. Our focus has always been on providing top-notch service. We ensure that the process of opening a company in Malaysia is smooth and stress-free.

2. BDO

BDO is a premier corporate service firm in Malaysia. They assist small sized enterprises by:

Since 2005, their primary objective has been to satisfy clients by providing high-quality service at competitive prices.

3. PWC

PWC is a part of the renowned PWC Group. They try to offer superior outsourcing and consulting services to international clients in Malaysia and beyond. Their services include:

How to Set Up Sdn Bhd Company in Malaysia?

A Sdn Bhd is a private limited company structure in Malaysia. To open a Sdn Bhd company in Malaysia, you need at least one director who is a Malaysian citizen and one shareholder and director is a foreigner.

Prepare Incorporation Documents

• Form Section 14: This is the application for incorporation, which includes:

• Constitution: This document outlines the rules governing your company. If you choose not to submit one, your company will automatically follow the rules set out in the Companies Act 2016.
• Identity Documents: You need to submit copies of the NRIC or passport for all directors and shareholders.
• Declaration of Compliance: This is a signed statement from the directors confirming that the company complies with the Companies Act 2016.

Submit the Incorporation Application

• Use the MyCoID Online Portal: Go to the MyCoID portal and upload all the documents you have prepared.
• Wait for Approval: After submission, you can usually expect approval within 3-5 business days.

• Appoint a Company Secretary:
  After incorporating your Sdn Bhd, you need to appoint a licensed Company Secretary within 30 days. The Company Secretary must be registered with theSSM. They should also be a member of the Malaysian Institute of Chartered Secretaries and Administrators.
• Submit the Paid-Up Capital:
  You need to set your company’s paid-up capital. It has to be at most RM 5,000. As your business grows, you can raise this amount to meet your needs for expansion.
• Set Up a Registered Office:
  You need to establish a physical address in Malaysia for your company’s registered office. This address is used for all official correspondence, such as communication from the Companies Commission of Malaysia and other regulatory bodies.
• Apply for Relevant Licenses:
  Depending on the type of business you’re starting, you may need to apply for specific licenses like:

• Register for Taxes:
  You need to register with the Inland Revenue Board and obtain the income tax number.
• Create Company’s Bank Account:
  ou can open a bank account for your Sdn Bhd company at any local or international bank. It takes 2 to 3 weeks to complete the account opening process and activate the account.

Are you wondering how to set up a company in Malaysia? Well, you should come up with a new business idea that fills a gap in the market. Analyze what local consumers want and the trends that are popular in Malaysia.

Once you have got a business idea, it’s time to conduct market research. You can create online surveys to gather feedback from potential customers.

For example, if you want to open a cafe, you might ask locals what types of food and drinks they prefer. Additionally, you can analyze industry reports.

For instance, a recent report might reveal that 60% of Malaysians prefer online shopping. This can guide you if you are looking to launch an ecommerce business.

Next, create a solid business plan that includes these elements:

You can also do a SWOT analysis to get a better understanding of your business's strengths, weaknesses, opportunities, and threats.

After finalizing the business plan, you need to reserve your company name. You can easily check if your desired name is available using the Companies Commission of Malaysia online portal.

Once you have secured your name, the next step is to register your business. You will need to prepare a few documents to submit to SSM for incorporation. The registration process usually takes about 3 to 5 business days.

Before you start your business, you need to get the right licenses. The type of licenses you need will depend on the kind of business you are running. For instance, if you are opening a food-related business, you will likely need health and safety permits.

Once you have your business registered, the next step is to open a corporate bank account. Most banks in Malaysia will require several documents like your business registration documents and identification to set up the account.

You’ll also need to register with the Malaysian tax authorities. This involves obtaining a tax identification number from the Inland Revenue Board of Malaysia.

If you plan to hire employees, you must set up accounts with the Employees Provident Fund and the Social Security Organization. These accounts are essential for employee benefits and social security contributions.

Foreign entrepreneurs need to get Employment Pass or Expatriate Services Division permission if they plan to hire foreign workers. Even when applying for a work permit, business visa, director's visa, or any other employment pass as the company's owner, ESD approval is necessary. This process involves submitting various documents to prove the need for foreign professionals in your business.

You need to choose the right location and establish an address for your business. To do that, you should consider these factors:

For example, if you want to open a boutique in Penang, try to set it up in Georgetown. This area is known for its street art and attracts many tourists and locals.

Next, set up your office or store. Arrange the space so it is comfortable and welcoming. Then, hire skilled employees for your business.

How to Open a Company in Malaysia for Foreigners?

Company registration in Malaysia for foreigners can be confusing. Thus, we have explained how to set up business in Malaysia for foreigners below.

Talk to a licensed company secretary. In Malaysia, you must have a company secretary when you incorporate your business. Make sure the secretary is registered with the Malaysian Companies Commission. For anyone looking into foreigner setting up a company in Malaysia, this step is essential.

Select a company name that follows the naming guidelines of SSM. The company secretary will then prepare and submit the necessary documents. Once the name is approved, complete the next steps within 30 days.

The Memorandum of Association describes your company's goals, shareholders, and business scope. Your company secretary will help you draft and submit this document to SSM.

Pay the registration fee to SSM. For foreign entrepreneurs, the company registration fee typically starts at RM 5,000. This fee may increase based on your company's share capital.

SSM will take 3-5 business days to process your application. If everything is okay, you will receive the certificate of incorporation.

If you're a foreigner starting a business in Malaysia, you will need to open an official bank account. You can do this within four weeks after your company is incorporated.

As a foreigner, you need to apply for a work permit to legally work in your business in Malaysia. Submit your application through the ESD portal, along with these documents: