How a foreigner can register a company in Malaysia

? Quick Answer: How can a foreigner register a company in Malaysia?

Foreigners can register a Sdn Bhd in Malaysia with 100% ownership in most sectors. The process requires at least one director with a principal place of residence in Malaysia (can be a foreigner with a valid pass), at least one shareholder, and a registered address. Official SSM incorporation fee is RM1,000, with name reservation RM50 if used.

  • ✓ Ownership – 100% foreign ownership permitted in most sectors
  • ✓ Director – at least one director with principal place of residence in Malaysia
  • ✓ Shareholder – minimum one (can be same as director)
  • ✓ Paid‑up capital – RM1 minimum (practical amount RM1,000–RM10,000)
  • ✓ Company secretary – licensed secretary within 30 days of incorporation

🌏 2026 Key Facts

SSM incorporation fee: RM1,000

Name reservation: RM50 (if used)

Typical timeline: 3–5 working days

Annual return: 30 days from incorporation anniversary

Audit exemption details →

What are the foreign ownership rules in Malaysia?

In most sectors, foreigners can own 100% of a Malaysia Sdn Bhd without a local partner. The government has progressively liberalised foreign equity policy, especially in manufacturing, services, and technology. However, certain industries have restrictions or require specific approvals:

Sectors with restrictions

  • Telecommunications
  • Banking & finance (Bank Negara approval)
  • Insurance
  • Oil & gas
  • Education (private higher education may have limits)
  • Professional services (law, accounting, engineering – registration required)
  • Retail trade (30% Bumiputera equity for foreign chain stores)

Fully open sectors (100% foreign allowed)

  • Manufacturing (subject to MITI guidelines)
  • ICT / technology / software development
  • E‑commerce and digital businesses
  • Most services (subject to licensing)
  • Real estate (with minimum capital thresholds)
  • Health tourism and private healthcare
  • Renewable energy

For sector‑specific guidance, refer to MITI and MIDA guidelines.

What are the director requirements for a foreign‑owned company?

Every Sdn Bhd must have at least one director who has a principal place of residence in Malaysia. This can be a foreigner who holds a valid Employment Pass, Dependant’s Pass with permission, or Malaysia My Second Home (MM2H) visa, provided they reside in Malaysia. If no director qualifies, a local resident director must be appointed.

Important points for foreign directors

  • The resident director must be physically present in Malaysia.
  • Directors are responsible for statutory compliance and can be personally liable for breaches.
  • If you are a foreigner and do not reside in Malaysia, you may still be a director as long as at least one other director satisfies the residency requirement.
  • Nominee director services are available for those who cannot appoint a resident director themselves. JT & CY Advisory can assist.

Source: SSM Guidelines for Incorporation of a Local Company

What is the step‑by‑step process for a foreigner to register a Sdn Bhd?

  1. Name reservation – Submit proposed name to SSM via the e‑portal. Fee: RM50 per 30 days. Approval typically within 1–2 working days.
  2. Prepare incorporation documents – Company constitution, details of directors and shareholders, registered address, share capital structure. JT & CY Advisory handles all documentation.
  3. Submit application to SSM – File via SSM online portal. Official fee: RM1,000.
  4. Receive Certificate of Incorporation – Usually within 3–5 working days. The Certificate includes the company registration number and date of incorporation.
  5. Post‑incorporation setup – Appoint a licensed company secretary (within 30 days), open a corporate bank account, register for tax with LHDN, and apply for any necessary licences.

The company secretary must be appointed within 30 days after incorporation. Source: SSM Submitting Incorporation Particulars

What are the costs to register a company in Malaysia for foreigners?

Official SSM incorporation fee is RM1,000. If you reserve the name first, the name reservation fee is RM50 for every 30 days or part thereof. Professional fees vary depending on the complexity and whether you require nominee director, registered address, and ongoing secretarial services.

Typical first‑year cost breakdown

  • SSM incorporation fee: RM1,000 (one‑time)
  • Name reservation (if used): RM50
  • Company secretary (annual): RM1,500 – RM3,000
  • Registered office / address service (if required): RM1,000 – RM2,000 per year
  • Accounting and compilation (annual): varies by transaction volume
  • Nominee director (if required): RM3,000 – RM6,000 per year
  • Licensing, immigration, or specialised approvals: depends on business activity

Contact us for a tailored quotation →

What are the ongoing compliance obligations for a foreign‑owned company?

After incorporation, the company must maintain proper statutory and accounting records, file annual returns with SSM, and submit tax returns to LHDN. A private company’s annual return is generally lodged within 30 days of the anniversary of its incorporation date. Financial statements must be prepared and lodged within the applicable timeline (for private companies, within 30 days after circulation to members).

Key annual deadlines

  • Company secretary: within 30 days after incorporation
  • Annual return (SSM): within 30 days of incorporation anniversary
  • Financial statements: lodge with SSM within 30 days after circulation to members
  • Tax return (LHDN): within 7 months after financial year‑end (e‑filing)
  • Audit exemption review: assess yearly under PD 10/2024

Source: SSM Annual Submission

What tax and audit rules apply to a foreign‑owned Sdn Bhd?

Foreign‑owned companies are not subject to special tax rates – they are taxed under the same regime as local companies. For the Year of Assessment 2026, qualifying resident companies with paid‑up capital ≤ RM2.5 million and gross income ≤ RM50 million pay 15% on the first RM150,000, 17% on RM150,001 to RM600,000, and 24% on the balance. Other companies are generally taxed at 24%.

For audit, a private company may qualify for exemption under SSM Practice Directive 10/2024 if it meets the relevant phased thresholds. For 2026 Phase 2, the thresholds are revenue ≤ RM2,000,000, assets ≤ RM2,000,000, and employees ≤ 20 – any two of three criteria apply, with the corresponding phase rule for prior years.

Full audit exemption guide →

How do I open a corporate bank account and what about work visas?

Opening a corporate bank account is possible with the Certificate of Incorporation, company profile, and director/shareholder documents. Major banks like Maybank, CIMB, Public Bank, and international banks such as HSBC and Standard Chartered welcome foreign‑owned companies. Typically, at least one director must be present for verification, though some banks allow video calls.

Company incorporation does not automatically grant work rights in Malaysia. If the foreign owner or employee will work in Malaysia, an Employment Pass or Professional Visit Pass must be obtained through the Immigration Department. The company must meet minimum capital and business activity requirements to support such applications. JT & CY Advisory can assist with introductions to immigration specialists.

Employment Pass requirements

  • Minimum salary: RM5,000 – RM10,000 depending on qualifications
  • Company must be operational and have at least RM500,000 paid‑up capital for foreign‑owned companies (varies by sector)
  • Expatriate quota approval from relevant ministry
  • Valid company registration and compliance

Source: Immigration Department of Malaysia

How JT & CY Advisory helps foreign investors

  • ✓ Sdn Bhd incorporation support from planning to filing, including director and shareholder advisory
  • ✓ Corporate secretarial and annual compliance support
  • ✓ Accounting, payroll, and practical reporting support
  • ✓ Audit exemption assessment and compliance guidance under PD 10/2024
  • ✓ Affiliate access to Terra Advisory Services (ACRA FA20122913) for Singapore expansion planning
  • ✓ Assistance with bank introductions and immigration referrals
Sim Chong Yen

Sim Chong Yen
FCCA, MIA

Frequently asked questions for foreign companies

1. Can a foreigner be the sole director and shareholder of a Sdn Bhd?

Yes, if the legal requirement for at least one director ordinarily residing in Malaysia is satisfied. If the sole director is a foreigner, they must hold a valid pass and reside in Malaysia.

2. Is there a minimum paid‑up capital requirement for foreign‑owned companies?

For most sectors, the minimum is RM1. However, certain sectors (e.g., retail trade, some services) require RM500,000 or more for foreign‑owned companies. We can advise based on your business activity.

3. Can a foreigner open a corporate bank account in Malaysia?

Yes. Major banks like Maybank, CIMB, and Public Bank offer corporate accounts for foreign‑owned companies. The bank will require the director(s) to be present for verification. JT & CY Advisory can assist with bank introductions.

4. How long does it take to incorporate a company?

Typically 3–5 working days after name approval. Name approval takes 1–2 working days.

5. Do I need a company secretary?

Yes, every Sdn Bhd must appoint a licensed company secretary within 30 days of incorporation. JT & CY Advisory provides this service.

6. What is the corporate tax rate for foreign‑owned companies?

Foreign ownership alone does not create a separate rate. Tax depends on the company’s status and eligibility. The current official LHDN page shows qualifying companies at 15% / 17% / 24%, with other companies generally at 24%.

7. Do I need to hire a local director if I am a foreigner?

Only if you do not have a principal place of residence in Malaysia. If you hold an employment pass and reside in Malaysia, you can be the resident director.

8. Can I register a company without visiting Malaysia?

Yes, the entire incorporation process can be handled remotely via a registered company secretary. However, bank account opening may require a visit or video verification. JT & CY Advisory can coordinate remotely.

9. How can JT & CY Advisory help my foreign‑owned business?

We provide end‑to‑end services: incorporation, corporate secretarial, payroll, audit exemption advisory, and cross‑border coordination with our affiliate Terra Advisory Services for Singapore expansion.

10. What are the audit exemption thresholds for 2026?

Under SSM PD 10/2024, Phase 2 (2026) allows exemption if you meet any two of: revenue ≤ RM2M, assets ≤ RM2M, employees ≤ 20. Full audit exemption guide →

11. Can I apply for an Employment Pass after incorporating?

Yes. Once the company is incorporated and meets the required paid‑up capital and business activity criteria, you can apply for an Employment Pass through the Expatriate Services Division (ESD) or Immigration Department.

12. Does JT & CY Advisory provide nominee director services?

Yes, we can assist in sourcing a nominee director to fulfill the resident director requirement, with proper documentation to protect your control. Alternatively, we can introduce you to reputable providers.

Important Notice: This information is for general informational purposes only and should not be relied upon as legal, tax, immigration, or professional advice. Foreign ownership rules, sector approvals, residence requirements, tax treatment, and compliance obligations depend on the exact business activity and facts of each case. JT & CY Advisory is an affiliate of Terra Advisory Services (ACRA FA20122913). For advice tailored to your situation, please contact us directly. Last updated: March 2026.