Services · Company formation
How to register a company in Malaysia as a foreigner
The registry approves a company in 1-3 working days, the bank takes about 4-8 weeks to open an account. We cover the Sdn Bhd (private limited company) and the 3% Labuan company, director and secretary rules, government fees, taxes, filings and banking.
Is it worth opening a company in Malaysia in 2026
The government fee to register a private company in Malaysia is RM1,000 (one thousand Malaysian ringgit, written RM locally), and the registrar decides within 1-3 working days. The hard part starts after registration.
The Companies Act 2016 (Act 777) requires at least one director who lives in Malaysia and a licensed company secretary. A foreign owner will almost certainly lose the small-business tax rates: if more than 20% of the capital belongs to foreigners, the company pays 24% corporate income tax from the first ringgit. For comparison, the headline rate in neighbouring Singapore is 17%.
The second route is Labuan, an island off the coast of Borneo with federal territory status and its own regime for international business. Trading profits there are taxed at 3%, but only if the company has real staff and spending on the island. Without them the rate jumps to 24%.
It suits people who sell to clients in Malaysia and neighbouring countries, are ready to relocate or hire a local director, and groups that need a regional subsidiary. It does not suit those after a low tax rate with no people or office, or those expecting the company itself to grant residence. A country overview is on Malaysia: citizenship, residence, taxes and visas.
We will calculate online the cost of registering and running your company for the first year.
Sdn Bhd or Labuan: which company a foreigner should open
For a foreigner in Malaysia the real choice comes down to two forms: a Sdn Bhd for the local market and a Labuan company for international operations. The rest are closed to foreigners or suit larger groups.
| Form | What it is | Who can open it | Key condition |
|---|---|---|---|
| Sdn Bhd (Sendirian Berhad) | private limited company, the Malaysian LLC | a foreigner, including as sole shareholder | a director who lives in Malaysia and a licensed secretary |
| Bhd (Berhad) | public company | larger businesses | at least two directors living in Malaysia |
| PLT (Perkongsian Liabiliti Terhad, LLP) | limited liability partnership, handy for consultants | two or more partners, foreigners allowed | a compliance officer who is a Malaysian citizen or permanent resident living in the country |
| Branch of a foreign company | a unit of an overseas company with no separate legal entity | an existing company abroad | a local authorised agent, same activities as the parent company |
| Sole proprietorship | business in your own name with full personal liability | Malaysian citizens and permanent residents only | closed to foreigners |
| Labuan company | company of the Labuan financial centre with its own law and tax | residents and non-residents of Malaysia | incorporated only through a licensed Labuan trust company, shares not in ringgit |
The Sdn Bhd is the workhorse of Malaysian business. Sendirian means private, Berhad means limited. Foreigners can own 100% in most industries; agriculture, banking, education, recruitment and oil and gas may require 50% Malaysian ownership. Foreign-owned wholesale and retail trade needs a separate wholesale and retail trade licence, WRT (Wholesale, Retail and Trade), from the Ministry of Domestic Trade.
A Labuan company is governed by the Labuan Companies Act 1990 and built for dealings with foreign counterparties; see the Labuan section below.
Who you need to register a Sdn Bhd: director, secretary, address and capital
The main obstacle for a foreigner is not money but section 196(4) of the Companies Act: every Sdn Bhd must have at least one director who ordinarily resides in Malaysia by having a principal place of residence there. The Companies Commission of Malaysia, SSM (Suruhanjaya Syarikat Malaysia, the state registry), confirms that a foreigner can be the sole shareholder, but the sole director only if living in the country.
Director. The requirement is met by a Malaysian citizen or permanent resident or a foreigner who genuinely lives in the country on a long-term status such as an Employment Pass (work permit) or MM2H (Malaysia My Second Home). Otherwise you need a local nominee director, selected by Murblz specialists, who carries full legal duties and will want to see the documents.
Company secretary. Appointed within 30 days of incorporation. The secretary must be an individual aged 18+, a Malaysian citizen or permanent resident living in the country, licensed by SSM or a member of a prescribed body, and registered with SSM. It is an ongoing cost.
Registered office. It must be in Malaysia; secretarial firms often provide it.
Capital. There is no minimum: one share, usually at RM1, is enough. To hire foreigners, including the owner, the company must register with the Immigration Department's Expatriate Services Division (ESD), which requires paid-up capital of RM500,000 for a 100% foreign-owned company and RM1,000,000 under a WRT licence.
If you need a status to live in the country, see also the Malaysia startup visa MTEP (Malaysia Tech Entrepreneur Programme) and the digital nomad visa.
How to register a company in Malaysia remotely: steps and timing
You can register a Sdn Bhd without ever flying to Malaysia: the application goes online through the SSM MyCoID portal, and approval usually comes within 1-3 working days. The bank is slower: about 4-8 weeks for a foreign-owned company.
| Step | What happens | Timing |
|---|---|---|
| 1. Name | reservation for RM50, or direct incorporation with the name checked in the application | the reservation lasts 30 days, the registrar can extend it up to 180 days |
| 2. Checks and documents | a licensed secretary checks the founders and fills in the Super Form, the single electronic incorporation form | depends on how fast documents are gathered |
| 3. Filing with SSM | payment of the RM1,000 fee and review of the application | 1-3 working days after a complete filing |
| 4. Notice of registration | the Notice of Registration arrives by email; a certificate of incorporation is issued separately for an extra fee | right after approval |
| 5. Secretary | appointment of a licensed secretary | no later than 30 days after incorporation |
| 6. Bank account | bank compliance review, an in-person visit by at least one signatory or the resident director | about 4-8 weeks |
| 7. ESD and licences | ESD if you hire foreigners, WRT if you trade, local premises licences | ESD: 14 working days, the rest depends on the agency |
Who has to travel. For registration, nobody: licensed secretaries verify identity digitally (e-KYC, electronic client identification). The bank is different: most Malaysian banks still require at least one signatory or the resident director in person.
A constitution is optional and can be adopted after incorporation. Sector licences, however, SSM advises obtaining before you start trading.
How much it costs to open a company in Malaysia
Government fees for a Sdn Bhd are almost symbolic: about $245 at registration, then about $40 for the annual return and about $15 for lodging financial statements every year. The real money goes on people the law requires: the secretary, accounting, auditor and, if you live abroad, a local director. In Labuan fees are higher, in dollars, charged by Labuan FSA (Labuan Financial Services Authority), and a trust company is mandatory.
| Payment | Amount | When |
|---|---|---|
| Sdn Bhd: name search and reservation | ~$15 per name | before registration, if the name is reserved separately |
| Sdn Bhd: SSM incorporation fee | ~$245 | on filing |
| Sdn Bhd: annual return | ~$40 | every year, within 30 days of the incorporation anniversary |
| Sdn Bhd: lodging audited financial statements | ~$15 | every year |
| Sdn Bhd: paid-up capital | from RM1; from RM500,000 to hire foreigners; from RM1,000,000 for trading under a WRT licence | at incorporation or before applying to ESD |
| Labuan: name reservation | USD 30 | before incorporation, approved within 24 hours |
| Labuan: Labuan FSA incorporation fee | USD 300 for capital up to RM50,000; USD 600 above RM50,000 and below RM1 million; USD 1,500 from RM1 million | at incorporation |
| Labuan: Labuan FSA annual fee | USD 1,000 | every year, under the schedule in force from 1 January 2026 |
What government fees do not cover. We quote the cost of secretarial, accounting, audit, trust company and nominee director services after reviewing the documents. Compare annual maintenance, not just the first year.
Capital is not an expense. The RM500,000 for ESD stays company money, but must be paid in before a work permit move.
Registration is about $245, but without a local director and secretary the company cannot operate
The law does not forbid registering a company in Malaysia on your own. But mistakes cost more than the fees: no director who lives in Malaysia and no licensed secretary, paid-up capital below the threshold for hiring foreigners, a Labuan company without real presence that pays 24% instead of 3%, a bank that takes weeks to open an account. We choose the company form, provide the secretary and director, register it and prepare the bank pack.
The cost of support depends on the company form and directors; a manager will calculate it in the chat.
Labuan company: the 3% tax and its price
Labuan offers the lowest rate in Malaysia: 3% of audited profits from trading activity and 0% for non-trading activity such as holding shares. But this is not a nineties-style offshore: since 2019 the relief applies only to companies with a real presence on the island, and the rest pay 24%.
How incorporation works. Labuan FSA supervises the company. Only a licensed Labuan trust company can incorporate it, and it also runs the client checks. You need at least one shareholder and one director, plus a resident secretary. There is no minimum capital and one share is enough, but shares cannot be denominated in ringgit. Labuan FSA can approve both the name and the company within 24 hours after a complete filing and due diligence.
What real presence means. The 2021 substance regulations (P.U.(A) 423/2021) under the Labuan Business Activity Tax Act 1990 require two to four full-time employees on the island and RM50,000 to RM3 million of annual operating expenditure there, depending on the activity. Miss them in a given year and that year is taxed at 24%.
Example calculation. A Labuan trading company with audited profit of RM1,000,000 that meets the requirements pays RM30,000 in tax. Without staff and spending on the island it pays RM240,000. Labuan pays off at meaningful profits; on small turnover, island salaries and an office eat the savings.
Pros and cons. Dividends from a Labuan company are not subject to the new 2% tax on individuals' dividends, and the registry works fast. But fewer banks accept Labuan companies and checks are stricter, especially for mainland Malaysian business. Business is done in foreign currency; ringgit is allowed mainly for administrative and statutory expenses, fees and commissions. Labuan suits international trading and holding structures, not a cafe in Kuala Lumpur.
What taxes a company pays in Malaysia and what it must file
A foreign-owned company pays the full rate: the 15% and 17% small-business rates are closed once foreigners own more than 20% of the capital.
| Tax | Rate | What matters |
|---|---|---|
| Corporate income tax | 24% | 15% on the first RM150,000 and 17% up to RM600,000 only for small businesses with capital up to RM2.5 million, income up to RM50 million and a foreign share of no more than 20% |
| Service tax | 8%, 6% for some services | registration generally from RM500,000 of taxable turnover a year |
| Sales tax | 10% or 5% | on goods manufactured in or imported into Malaysia |
| Dividends | 0% withholding | since 2025 individuals pay 2% on dividends above RM100,000 a year |
| Labuan company | 3% or 0% | only if the substance requirements are met, otherwise 24% |
Example calculation. Annual profit is RM300,000. A local small company pays RM48,000: 15% on the first RM150,000 and 17% on the remaining RM150,000. A 100% foreign-owned company pays 24%, or RM72,000, which is RM24,000 more.
No VAT. Malaysia has SST (Sales and Service Tax) instead, administered by the Royal Malaysian Customs Department.
Dividends and foreign income. The 2% dividend tax applies to both resident and non-resident individuals. Foreign-source income received in Malaysia is generally taxable, with a conditional exemption for foreign dividends.
Tax filing. The Inland Revenue Board of Malaysia, LHDN (Lembaga Hasil Dalam Negeri), expects the company's return within seven months of the financial year end, and estimated tax is paid monthly in 12 instalments. E-invoicing is being phased in; the small-turnover exemption threshold has changed several times. More on taxes is on taxes in Malaysia.
Filing with SSM. Every year the company lodges an annual return and financial statements. An audit is mandatory, but from 2025 SSM widened the exemption for small private companies (Practice Directive 10/2024). For financial years starting in 2026, a company must stay within two of three thresholds (revenue RM2 million, assets RM2 million, 20 employees) in the current and two previous years. From 2027 the thresholds rise to RM3 million and 30 employees. If SSM does not require an audit, LHDN has said audited accounts are not needed for tax purposes either.
Beneficial ownership register. Since 1 April 2024, under amendments to the Companies Act, every company must identify the individuals who ultimately own or control it, keep a register and report them to SSM through the e-BOS system.
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A bank account in Malaysia and citizens of Russia and Belarus
Malaysia has not imposed sanctions on Russia and recognises only UN sanctions. In May 2025 Prime Minister Anwar Ibrahim said the country respects UN sanctions but finds unilateral ones difficult to honour. Yet banks, not the government, decide on accounts, and for Russian owners this is the hardest step.
What it looks like in practice. Most banks require at least one signatory or the resident director to visit a branch in person, and for a foreign-owned company the whole process takes about 4-8 weeks. The minimum balance depends on the bank and the package: from RM500 for basic SME accounts to RM50,000 for premium corporate services. Checks on foreign companies have tightened in recent years.
What improves your chances. A clear business description, client contracts, documents on the source of funds, a director who genuinely lives in Malaysia and a real office.
Citizens of Russia and Belarus. Malaysian law does not bar them from registering companies or opening accounts. Banks route dollar and euro payments through correspondent accounts abroad, so Russian and Belarusian clients should expect enhanced due diligence. Anwar Ibrahim himself acknowledged that Malaysian businesses operating in Russia had raised payment difficulties. Getting to the bank is easy: according to the Embassy of Malaysia in Moscow, citizens of Russia and Belarus need no visa for trips of up to one month.
Moving money out. Malaysia has central bank exchange controls, but repatriation of capital, profits and dividends is freely permitted.
More on banking is on business account in Malaysia and personal account in Malaysia.
What we do
Registration takes days; a wrong choice of form or director costs years of extra tax and bank refusals. So we start with why you need the company.
- we assess your goal and say plainly if another country works better, for example Singapore or Hong Kong;
- we help choose the form: Sdn Bhd, Labuan company, PLT partnership or branch;
- we prepare incorporation documents, powers of attorney, translations and apostilles;
- we arrange filing with SSM through a licensed company secretary, and for Labuan through a licensed trust company;
- we help with a registered address and, if you live abroad, a local director, explaining their rights and risks;
- we bring in Murblz accounting and tax specialists for bookkeeping, tax returns, SST, e-invoicing and annual filings, and an auditor where needed;
- we prepare a compliance pack for the bank and help open the company account;
- if you need residence, we help with ESD registration and a work permit or with the MM2H programme.
Legal representation - registration filings, dealings with government agencies and disputes - is handled by our partners with a local licence. Other countries are covered in company registration and company registration abroad.
See also
Business account · Personal account · Investment property · Country taxes · All country programs
FAQ
Can a foreigner open a company in Malaysia?
How much does it cost to open a company in Malaysia?
Can I register a company in Malaysia remotely?
What is the corporate tax rate in Malaysia?
What is a Labuan company and how is it taxed?
Is there a minimum share capital for a company in Malaysia?
Does a company in Malaysia give the right to residence?
Can a Russian citizen open a company and a bank account in Malaysia?
Opening a company in Malaysia or Labuan?
We choose between a Malaysian Sdn Bhd and a Labuan company, register it and guide the account opening with a Malaysian bank. The catalogue covers every country.
The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.
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