Investors can benefit from the most recent information as of year 2024 regarding the cost, procedure, and timeline for completing Sdn Bhd (limited) company registration for foreigner. Any traveler may register a company in Malaysia and remain there for the duration of their visa. After opening company, the government does not grant a work permit unless you apply to Esd and complete the necessary paperwork. . Sdn Bhd company registration fees range from Rm 3000 to Rm 12000, depending on how many services are taken.
With Suruhanjaya Syarikat Malaysia (SSM), any foreigner can establish a company in Malaysia in as little as four to five working days through online. Important requirements of registering a company in Malaysia are follows:
Eight distinct business entities are available for selection. Sdn Bhd's business and branch offices are open to foreigners. We will go over the Malaysian business registration procedure in detail, including all the necessary instructions. .
Cobtact us for a free business advisory and business establishment service:
Mr. Hossain +601151177141 (Connect over WhatsApp)
Consultant, since 2016
Monday to Friday (11 am to 5 pm)
Wisma Uoa, Jlan Pinang, Kuala Lumpur
Suruhanjaya Syarikat Malaysia in short regulates all the companies and businesses in Malaysia. There are some strict guidelines you must follow to get your company openiing in Malaysia. This statutory body was formed in a merge between the Act of Parliament and Business Affairs in Malaysia.
Ssm regulates the business models and following the guidelines you must submit the necessary documents for a Malayia company setup. The main steps to register new companies in Malaysia are provided below:
We have briefly said about the entities in Malaysia before, there are 8 different types which all foreigners cannot register. Knowing the entity that best suits you can benefit you in the long run. Reading this article, you will have a clear idea about all the business entities available in Malaysia and which one suits you best. The business entities are provided below:
Among the business entities, foreigner register can do as llc register a Private Limited Company . Although registering a Private Limited Company is enough for a foreigner as they can hold 100% ownership of the company. These 8 business entities can be categorized into 3 types as we will elaborate in the table below:
| Business Categorized | Registering of Business (ROB) | Incorporation of Company (ROC) | Limited Liability of Partnership (LLP) |
| Entities | Enterprise & Partnership | Private Limited Company by Guarantee, Unlimited Public Limited Company | Limited Liability Partnership |
| Governing Act | Registration of Business Act 1956 | Companies Act 2016 | Limited Liability Partnerships Act 2012 |
| Liabilities | Unlimited liability of business owner | Company’s liability separates from Owner’s liability | Partnership and private Limited Company combined liabilities |
| Contributions | Own or partner | Share capital | Contribution from partner |
| Tax Category | Personal income tax | Corporate tax |
Corporate tax |
As an entrepreneur, you might want to start a small to medium-size business in Malaysia. The sole proprietorship is one of the simplest and easiest forms of business. A single person (not for foreigners) can easily run this business. This business entity is the best for an entrepreneur who wants a startup with small to medium size business planning. The positive side is he/she can easily transform his sole proprietorship to a Private Limited Company when his/her business starts to grow. The conversion process is simple. Read the table below to see the advantages and disadvantages of a sole proprietorship in Malaysia:
| Advantages | Disadvantages | Suggested Person |
| Cheaper to register Simple incorporation process compared to other business models fewer formalities to follow | Renewal time is annual All liabilities must be handled by a single person/owner Personal income tax can get expensive to bear | Permanent resident or citizen of Malaysia |
As an entrepreneur, you might want to start a business with a partner. As the name suggests, a partnership requires at least 2 partners to register. The difference being the liabilities will be shared between the partners instead of a single person/owner like a sole proprietorship. The liabilities are divided so the risk is less compared to sole proprietorship. The minimum partners required is 2 and a maximum of 20. This type of business entity is common among lawyers, accountants, doctors, etc. The downside to this business entity is that not all foreigners can register this. If you are a citizen in Malaysia or hold a permanent residency, you are eligible to register a Partnership business in Malaysia. The Pros and cons are provided below:
| Advantages | Disadvantages | Suggested Person |
| Cheaper to register Simple process of opening Less formalities to follow | Renewal time is annual All liabilities must be handled by a single person/owner Personal income tax can get expensive to bear | Permanent resident or citizen of Malaysia |
A private company limited by shares is called Sdn Bhd Company in Malaysia. This business model is registered as a separate legal entity that can own properties, able to earn revenue. As this is completely a separate entity, your personal capital is not at risk. You are able to incorporate Sdn Bhd being the only director and shareholder of the company without the necessity of a partner. The benefits are provided below with the disadvantages in the table:
| Advantages | Disadvantages | Suggested Person |
| Relatively cheaper to incorporate Separated liabilities Scalability possible by increasing the paid-up capital Foreigner can hold 100% ownership | Limitation of 50 shareholders Not able to raise public funds Restrictions on share transfer At least 1 director must-have Malaysian residency | People looking to start a small to medium-size business in Malaysia |
This business is open to the public. This business has no shareholders and is made up of guarantors. Members are not required to invest money in the business. However, in the event that the business closes for any reason, they are responsible for paying debts. Profits from this kind of business are used exclusively for the purposes specified in the constitution. The following lists the benefits along with a few drawback :
| Advantages | Disadvantages | Suggested Person |
| There are no capital contributions needed from the members.This company can promote religion, charity, and other causes. It is possible to avoid paying corporate tax. | costly and challenging to integrate strict guidelines and protocol earned profits must be put toward the organization's goals because it cannot change into another type of business. If the business loses money or shuts down, members are responsible for paying the debt. | Non-Profit organizations (NGO) |
You can open an unlimited mutual fund company to hold assets for potential investments. This company's liability to its shareholders is unlimited. Liabilities of an unlimited company are similar to those of a partnership, with the exception that shares may be freely sold back to the company. Unlimited Company offers a number of benefits and drawbacks, which are displayed in the table below :
| Advantages | Disadvantages | Suggested Person |
| Share ownership is flexible. A selection of both publicly and privately accessible | Costly to set up and include complications in tight regulations to adhere to the debt of the business is owed by the shareholders. | Mutual Funds |
Like Sdn Bhd, this company is restricted by shares. The main distinction is that there is no cap on the number of shareholders and the shares can be made available to the general public. A public limited company must have a minimum of two directors. Due to stringent regulations and procedures, registering this business entity may take a long time. The following lists the main benefits and drawbacks. :
| Advantages | Disadvantages | Suggested Person |
| The simplest way to collect money from the general public adaptable to owners' shares | costly and challenging to register, with stringent regulations and procedures to adhere to | Anyone with large business plans |
This business entity will work best for you if you are a foreigner who already has a business in another nation. You can open a branch office in Malaysia with this business incorporation even if you don't have citizenship or permanent residency. The only foreign companies allowed in Malaysia for opening a Sdn Bhd Company. There are benefits and drawbacks to incorporating this kind of business, which we will list in the table below. :
| Advantages | Disadvantages | Suggested Person |
| Investors able to operate in Malaysia without a citizenship or permanent residence | It can be costly and challenging to register stringent regulations and procedures to adhere to fundraising for the public is impossible. | Owners of already-established companies intend to grow their operations in Malaysia. |
This business entity is overseen by the Limited Liability Partnerships Act 2012. This company is relatively recent. Thus, the establishment of this business is uncommon. This company is a hybrid of a partnership and Sdn Bhd. The distinction is that there is no upper limit on the number of partners, but there is a minimum requirement of two. The following lists the benefits and drawbacks :
| Advantages | Disadvantages | Suggested Person |
| There is no cap on the quantity of partners comparatively inexpensive to include flexibility between partners. | Public fundraising is not feasible. Because this business entity is subject to a relatively new law, it can be challenging to understand. | Citizen or permanent residency holders with small business plan in mind and want to start with partners. |
You can choose the company that best suits your needs with 100% foreign ownership by reading this article, which should provide you with information about the companies that are available for you to register. You wish to incorporate your business in Malaysia now that you are aware of all the advantages and distinctions between business entities. To register companies in Malaysia, there are specific procedures and prerequisites. For a business to be established successfully, these conditions must be fulfilled. Depending on the type of business, a foreigner may own all of the company's shares. For instance, if a company's nature of business is retail and wholesale, it must be registered with either Ringgit 1 million in capital for 100% foreign ownership or 51% Malaysian shareholders to skip of the capital.
With continuous economic growth in Malaysia, entrepreneurs are choosing Malaysia as their new business startup. Even the already established companies are registering companies in Malaysia to expand into the Malaysian market. Team of S & F Consulting Firm are experts in foreign company registration process, business licensing, tax and accounting services. Please feel free to contact us regarding any issue or consultancy regarding business opening in Malaysia.
Can a foreigner register Sdn Bhd company in Malaysia wiith 100% ownership?
Yes can, non-residents can register 100 % shareholding company. No local, Malaysian need unless the nature of business is timber. There are some advantages, speak with a secretary, if local partner holds majority shares. Foreigners can not do some business unless a local person holds company shares.
How long required to register a company in Malaysia as foreigner?
For name registration: 2-3 days are required. For company incorporation: 1-2 days. Sometimes takes longer when proposed name is rejected by Ssm.
How much does it cost to register a company in Malaysia?
Registration fees:
1) Name submission and approval and company incorporation: RM 1010/- (Government fee only).
2) Signboard and Premise Licenses fees depend on size of the board, it start from Rm 1200 to Rm 2000 or above.
3). Epf and Socso- Registration is free of cost.
How much minimum paid-up capital is required for foreign company in Malaysia ?
According to the law, a company can register for one ringgit, but we advise taking into account the bank's requirements of at least Rm 2000.
Can a foreign shareholding company open a bank account?
Bank regulations are periodically modified; at one point, foreign banks were allowed to open accounts for companies with foreign stockholders. These days, all foreign banks are stringent due to unforeseen requirements placed on foreign directors. On the other hand, local Malaysian banks are simpler, but account activation takes three weeks.
Why share capital or, paid up capital Ringgit 500,000 is required for foreigner?
A certain amount of equity investment in the business is necessary if foreign ownership companies register Sdn Bhd and then apply for a work permit. This is a comprehensive guideline from Malaysia's Expatriate Service Department, where businesses can register to apply for work permits.
Do I need work permit to start a business in Malaysia as foreigner?
Answer: No, it is not necessary at all because foreigners are able to open bank accounts, register Sdn Bhd companies, and run their businesses as tourists.
Can I get visa / work permit/ director visa/ investor visa to stay in Malaysia for my business after registration my company?
Answer: No, once you have registered a Sdn Bhd company, you will not receive a visa. As tourists, foreigners are allowed to run their businesses, employ local staff, and manage them. The foreign national must leave the country before their visa expires and return.
How can I stay in Malaysia after opening my company?
Answer: In order to apply for work permission, directors of Sdn Bhd companies must complete the requirements set forth by the Expatriate Service Department. Please watch the video to learn more about the Malaysian working permit application process.
How a foreigner register company in Malaysia as a tourist?
As a tourist, foreigners can register company in Malaysia and begin activities. Establishing a business as a tourist and working as a director of the company has no constraints. A director cannot work without the governing authority's job permission. It is allowed to make trips to Malaysia for business reasons and stay for the length of the visa. In Malaysia, registering a business requires neither a work permission nor another kind of residing visa.
About company
Since 2012 S & F Consulting Firm, sister concern Sfm Consulting Firm Sdn. Bhd.. (Company No. 1179732-P).
Address: Wisma UOA 2, Unit 13A, Level 15, Jalan Pinang (Road Pinang), Kuala Lumpur, 50450, Malaysia. 5 minutes walking distence from Pavilon Bukit Bintang and 10-12 minutes walking distence from Petronus Twin Tower.
Contact: +601151177141 (Available WhatsApp) , Email: info at sfconsultingbd dot com
Call Us For the Following Services:
1). Business Consultancy
2). Signboard & Premise License
3). Wrt License
4). Export and Import License
5). Company Secretary
6). Nominee Director Service (Fee RM 3000 yearly plus conditions)
7) Working permit for the foreign investors who will register a Sdn Bhd company with our guidelines.
