Local SMe company registration
≡ What this guide covers
? Quick Answer: How does a local SME register a Sdn Bhd in Malaysia?
A local SME can register a Sdn Bhd in 3–5 working days through SSM. The process requires at least one director ordinarily resident in Malaysia, at least one shareholder, a registered office address, and a licensed company secretary appointed within 30 days of incorporation.
- ✓ 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 often higher)
- ✓ Registered address – a physical address in Malaysia
- ✓ 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
What are the requirements to register a Sdn Bhd for a local SME?
A Sdn Bhd must have at least one director whose principal place of residence is in Malaysia, at least one shareholder, a registered address in Malaysia, and a licensed company secretary appointed within 30 days of incorporation. The director and shareholder can be the same person. Paid‑up capital can start from RM1, though a realistic amount is recommended for banking and commercial credibility.
Core eligibility
- At least 1 director ordinarily resident in Malaysia
- At least 1 shareholder
- Registered office address in Malaysia
- Business activity description
- Company secretary within 30 days
Documents commonly needed
- MyKAD / NRIC of directors and shareholders
- Residential address details
- Proposed company name
- Nature of business / business codes
- Registered office and shareholding details
Source: SSM – Starting a Company
How much does it cost and how long does it take?
The official SSM incorporation fee for a company limited by shares is RM1,000. If you reserve the name first, the reservation fee is RM50 for every 30 days or part thereof. In straightforward cases, incorporation is often completed in about 3–5 working days.
| Item | Official Fee / Timing | Notes |
|---|---|---|
| Name reservation | RM50 | Charged per 30 days or part thereof if reservation is used |
| Incorporation fee | RM1,000 | For company limited by shares |
| Typical timeline | 3–5 working days | Straightforward local SME setups |
Source: SSM Table of Fees
What tax rates apply to Malaysian SMEs in 2026?
For the Year of Assessment 2026, qualifying resident companies with paid‑up capital of not more than RM2.5 million and gross business income of not more than RM50 million pay tax at the following rates on chargeable income:
- 15% on the first RM150,000
- 17% on RM150,001 to RM600,000
- 24% on the balance above RM600,000
Companies that do not meet the SME criteria are generally taxed at 24%. Additional incentives may be available for reinvestment, R&D, and export promotion. LHDN Company Tax Rate
Does my SME qualify for audit exemption in 2026?
Under SSM Practice Directive 10/2024, a private company may qualify for audit exemption if it meets any two of the following three criteria for the current and immediate past two financial years, using the threshold applicable to each respective phase:
| Phase | Financial Year | Revenue ≤ | Assets ≤ | Employees ≤ |
|---|---|---|---|---|
| Phase 1 | 2025 | RM1,000,000 | RM1,000,000 | 10 |
| Phase 2 | 2026 | RM2,000,000 | RM2,000,000 | 20 |
| Phase 3 | 2027 onward | RM3,000,000 | RM3,000,000 | 30 |
If eligible, the company may lodge unaudited financial statements with SSM in XBRL format, accompanied by an Audit Exemption Certificate (Appendix 1 of PD 10/2024). Even when exempt, proper accounting records and compliant financial statements are still required.
What are the ongoing compliance obligations for a Sdn Bhd?
After incorporation, a Sdn Bhd must maintain proper statutory and accounting records, file annual returns with SSM, and submit tax returns to LHDN. Under the Companies Act 2016, private companies are generally not required to hold an Annual General Meeting unless their constitution requires it.
Key deadlines
- Company secretary: within 30 days after incorporation
- Annual return (SSM): within 30 days of the anniversary of incorporation
- Financial statements (private company): 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 annually under PD 10/2024
Source: SSM Annual Submission
Why choose JT & CY Advisory for your SME?
- ✓ Led by Sim Chong Yen, FCCA, MIA – in practice since 2012
- ✓ Specialists in SME incorporation, secretarial, and audit exemption
- ✓ Practical advice drawn from operational experience (process improvement background)
- ✓ Affiliate of Terra Advisory Services (ACRA FA20122913) for clients expanding to Singapore
Sim Chong Yen
FCCA, MIA
Frequently asked questions for local SMEs
1. What is the minimum capital to start a Sdn Bhd in Malaysia?
2. Can one person be both director and shareholder?
3. What is the difference between a Sdn Bhd and a sole proprietorship?
4. What are the official SSM fees to register a Sdn Bhd?
5. Do all private companies still need annual audited accounts?
6. Do private companies still need to hold an AGM every year?
7. When must annual return be filed with SSM?
8. When must financial statements be lodged for a private company?
9. What are the 2026 audit exemption thresholds?
10. Does JT & CY Advisory provide ongoing secretarial support after incorporation?
11. What are the penalties for late filing of annual return?
12. How can I get a quotation for incorporation?
Official references
Important Notice: This information is for general informational purposes only and should not be relied upon as legal, tax, audit, or professional advice. JT & CY Advisory is an affiliate of Terra Advisory Services (ACRA FA20122913). For advice tailored to your specific circumstances, please contact us directly. Last updated: March 2026.