Registering a company in Malaysia

In addition to its advantageous location, plentiful natural resources & investor-friendly climate, Malaysia can also boast a simple incorporation procedure

Opening a company in Malaysia requires applying to the SSM (an authority charged with overseeing Malaysian businesses).

There’s several types of business organization forms one can choose from. They include:

• SDN BHD - an analogue of LLC;
• BHD - an analogue of PLC;
• partnership;
• LLP;
• sole proprietorship;
• LTD;
• foreign company.

Registering a company in Malaysia requires:

• filling out an online form for incorporating a company in Malaysia;
• choosing a company name & checking for its availability;
• obtaining approval for the selected name;
• filling out & submitting the necessary documents for company registration in Malaysia;
• obtaining a company registration certificate in Malaysia;
• submitting statutory documents to the SSM & convening the 1st meeting of the BoD.

Pursuant to Malaysia's legislation:

• the presence of no less than 1 director is required;
• no authorized capital is required; a paid-in capital can be increased at no extra cost;
• only one type of activity can be conducted, however, it can be changed in the SSM profile of companies;
• a secretary is required.

Incorporating a company in Malaysia requires:

• submitting copies of passports of directors & shareholders;
• providing a conformation of a director's registration address;
• having a name (3 names to choose from);
• completing a registration form.

Labuan & Malaysia Sdn Bhd Companies

Foreign individuals seeking to start a business in Malaysia have 2 options - Labuan International Company or Malaysia Sdn Bhd. Choosing the right one depends on the nature of one’s business. 

Let’s take a closer look at Malaysia Sdn Bhd:

• its target market is in Malaysia;
• one hundred percent foreign ownership requires having a paid up capital of one million; four hundred thousand is required for joint ownership;
• at least 1 director & 1 shareholder required;
• a business license & industry licenses are required (depending on the nature of your business);
• no redomiciliation is possible;
• acquiring stocks of a Labuan company is possible;
• a corporate tax for domestic & international markets is twenty four percent;
• foreign employees, including directors, are to pay a personal income tax ranging from zero to twenty eight percent;
• submission of audit reports is required (an exception is made for private & tax-exempt companies or companies with a turnover of less than three hundred thousand);
• all information, including financial accounts, is available.

Let’s take a closer look at Labuan International Company:

• submitting reports on company transactions is required;
• its target market is international;
• one hundred percent foreign ownership requires having a paid up capital of one dollar;
• no less than 1 director and 1 shareholder are required;
• a business license & industry licenses are required (depending on the nature of your business);
• re-domiciliation is possible (to jurisdictions recognizing Labuan companies);
• acquiring SDN BHD’s shares is possible;
• a corporate tax rate for international markets is three percent;
• no personal income tax for directors is required (for foreign employees, a personal income tax rate ranges from zero to twenty eight percent);
• audit reporting is only required for Labuan trading companies;
• all corporate information is strictly confidential.