.png)
Company incorporation in Malaysia is governed by the Companies Act 2016 and regulated by the Companies Commission of Malaysia (SSM). The most common business structure is the Private Limited Company (Sdn. Bhd.), which has a separate legal entity status, and shareholders are only liable up to the amount of shares they hold.
The company name must be in English or Malay and end with “Sdn. Bhd.” Up to three proposed names may be submitted to SSM for approval.
A minimum of one shareholder is required, who may be either an individual or a corporate entity, with no nationality restrictions. Most ordinary industries allow 100% foreign ownership (except restricted industries such as finance, telecommunications, and energy).
A minimum of one director is required, and at least one director must be ordinarily resident in Malaysia (i.e. a Malaysian citizen, permanent resident, or a foreigner holding a valid long-term work pass). Foreigners without Malaysian residency status may only act as shareholders.
The minimum paid up capital is RM1, with no mandatory capital injection requirement. However, foreign investors are generally advised to set the paid up capital between RM1,000 and RM100,000 depending on business credibility and licensing requirements. Fully foreign owned companies in certain industries such as manufacturing and services may require a minimum paid up capital of RM500,000.
The company must maintain a physical registered address in Malaysia. P.O. boxes are not permitted, though a registered office address provided by a corporate secretarial firm may be used.
Certain industries require business licenses before commencing operations (e.g. wholesale and retail trade licenses may require a minimum paid up capital of RM1 million).
Our services:
- Malaysia company name reservation
- Incorporation of new Malaysian Private Limited Companies (Sdn. Bhd.)
- Provision of registered office / correspondence address
- Professional advisory on corporate restructuring, reorganization, and company law matters
Under the Malaysian Companies Act 2016, all private limited companies must appoint a licensed company secretary within 30 days of incorporation. The company secretary is responsible for advising directors on legal compliance, managing annual filings with SSM, handling share transfers, and ensuring the company remains compliant.
We provide comprehensive corporate secretarial services to ensure continuous compliance. We may also provide Nominee Resident Director services to satisfy statutory requirements for foreign investors.
Our services:
- Annual company secretarial services
- Provision of Nominee Resident Director
- Share transfers and changes of directors / secretaries / company name / registered address / capital increase
- Company strike off and deregistration
- Submission of statutory reports, forms, and documents to SSM
- Drafting notices and agendas for Annual General Meetings (AGM) and Extraordinary General Meetings (EGM)
- Convening and attending board and shareholder meetings
- Preparation of meeting minutes and resolutions
- Advising and reminding clients on AGM deadlines
Company audits in Malaysia are governed by the Companies Act 2016 and SSM regulations and are conducted in accordance with Malaysian auditing standards.
In 2024, SSM issued Practice Directive No. 10/2024, which gradually expands audit exemption thresholds for private companies in three phases beginning in 2025. The second phase takes effect in 2026.
Our services:
- Statutory audits
- Audit exemption assessment and application
- Special purpose audits
- Group audits and consolidated financial statement audits
- Management letters
- Pre-IPO audits
- Audit support and coordination
- Financial systems and internal control reviews
Under the Malaysian Companies Act 2016 and Income Tax Act 1967, all business entities operating in Malaysia are required to maintain sufficient accounting records to determine taxable profits. Accounting records must be retained for at least 7 years.
Companies are also required to submit corporate income tax returns annually to the Inland Revenue Board of Malaysia (LHDN).
Our services:
- Accounting and bookkeeping
- Setup and maintenance of accounting records
- Monthly / quarterly / annual management reports
- Accounts receivable and payable management
- Voucher organization and filing
- Bank reconciliation
- Historical bookkeeping cleanup and catch-up accounting
- Inventory records and cost accounting
- Payroll calculation and recordkeeping
- Accounting file retention and compliance support
Malaysian companies are required to prepare financial statements in accordance with Malaysian Financial Reporting Standards (MFRS).
Companies that qualify for audit exemption (such as dormant companies, zero revenue companies, or private companies meeting at least two out of three prescribed thresholds) are still required to prepare Unaudited Financial Statements (UAFS) and directors’ declarations, submit annual returns to SSM, and complete Form C tax filings on time.
Our services:
- Annual financial statement preparation
- Interim financial reporting
- Dormant company financial statements
- Consolidation reporting services
- Notes disclosure and compliance review
Malaysia’s tax system consists primarily of direct taxes (corporate income tax, personal income tax, withholding tax, real property gains tax, etc.) and indirect taxes (Sales and Service Tax (SST), stamp duty, customs duties, etc.).
Direct taxes are administered by the Inland Revenue Board of Malaysia (LHDN), while indirect taxes are administered by the Royal Malaysian Customs Department.
The standard corporate tax rate is 24%, while qualifying SMEs may enjoy preferential tiered tax rates.
Our services:
- Corporate tax computation / filing / submission
- SST registration / computation / filing / submission
- Personal income tax / withholding tax / stamp duty services
- Tax incentive and exemption applications
- Tax health checks
- Tax dispute assistance
- Transfer pricing documentation
Intellectual property protection in Malaysia is administered by the Intellectual Property Corporation of Malaysia (MyIPO).
Malaysia is a member of the Paris Convention, PCT, WTO/TRIPS Agreement, and the ASEAN Patent Examination Cooperation (ASPEC) program. However, Malaysia is not currently a member of the Madrid Protocol for international trademark registration, so trademark applications must be filed through national applications.
Our services:
- Trademark registration
- Trademark searches and risk assessment
- Trademark renewal and amendments
- Trademark opposition and dispute support
- Patent application services
- Patent categories and protection periods
- Patent maintenance and annuity management
Companies operating in Malaysia that employ foreign personnel must comply with regulations set by the Immigration Department of Malaysia, Ministry of Human Resources (MOHR), and relevant industry regulators.
Foreign owned companies may apply for Employment Passes (EP) for eligible foreign employees, subject to company incorporation, bank account opening, tax registration, and where applicable, expatriate quota approvals.
Our services:
- Employment Pass (EP) applications
- Investor Visa applications
Certain industries in Malaysia require business licenses, industry permits, and government approvals before commencing operations.
Industries such as manufacturing, import/export, construction, food & beverage, education, healthcare, finance, logistics, e-commerce, and regulated goods trading may require operational licenses, import permits, approvals, or government registrations.
Some sectors also impose requirements relating to foreign ownership ratios, paid up capital, office premises, professional staffing, and local director appointments.
We provide one stop services covering industry entry assessments, license applications, government liaison, renewal management, and ongoing compliance support to help businesses operate smoothly and compliantly in Malaysia.
Our services:
- Assistance with CIDB G7 construction license applications
- Assistance with office / restaurant / retail / factory business licenses
- Assistance with Manufacturing License applications
- SST Customs account applications
- LMW bonded warehouse certification
- SIRIM certification
- Other industry licenses and regulatory approvals