Foreigners’ Checklist: Setup Company in Malaysia Guide

Did you know over 5,000 foreign entrepreneurs successfully registered companies in Malaysia last year? With its strategic location, competitive costs, and business-friendly ecosystem, Malaysia is fast becoming one of Southeast Asia’s most attractive investment destinations.

Still, for many first-time investors, understanding how to register a company in Malaysia for foreigners can feel overwhelming.

This blog breaks it all down — from selecting the right business entity to submitting your documents — so you can setup your company in Malaysia with clarity and confidence.

TL;DR: Want to Setup a Company in Malaysia as a Foreigner? Start Here.

Thinking about launching a business in Malaysia but not sure where to begin?

Here’s the quick version:

• Best Structure for Foreigners: Register a Private Limited Company (Sdn. Bhd.) — it allows up to 100% foreign ownership in most industries.
• Steps to Register:
  1. Reserve your company name via SSM
  2. Prepare your documents (passport, business address, director/shareholder info)
  3. Submit online via MyCoID
  4. Receive your Certificate of Incorporation
  5. Open a bank account & register for tax
• Common Requirements:
  • At least one director and one shareholder
  • Appoint a local company secretary
  • Comply with post-registration tasks like tax, EPF, SOCSO, and licensing

Bonus Tip: Skip the hassle. Let Grof help you setup your company in Malaysia the right way — legally, quickly, and with full compliance.

🚀 Ready to get started? Talk to our incorporation experts now →

Why Malaysia Attracts Foreign Entrepreneurs

Malaysia has positioned itself as a regional business hub for several reasons:

• 100% foreign ownership allowed in most industries
• Low startup costs and fast incorporation process
• Access to ASEAN’s free trade agreements
• No restriction on repatriation of profits or dividends
• A well-developed banking and infrastructure system

Whether you’re launching a tech startup, import-export company, or consulting firm, setting up a company in Malaysia offers great value and long-term potential.

Step 1: Understand the Business Structures Available to Foreigners

To begin, decide which business entity aligns with your goals. Here’s a breakdown of the key options available to foreigners:

✅ Private Limited Company (Sdn. Bhd.)

This is the most popular structure for foreign investors.

• Separate legal entity with limited liability
• Allows 100% foreign ownership (with some industry exceptions)
• Can own assets, sign contracts, sue and be sued
• Requires at least one director and one shareholder
• Must appoint a qualified local company secretary within 30 days

⚠️ Sectors like education, oil & gas, finance, and agriculture may require local equity participation or special licences.

✅ Branch Office

Best for foreign companies expanding into Malaysia without forming a new entity.

• Not a separate legal entity
• Liabilities fall under the foreign parent company
• Activities must mirror the parent company
• Requires at least one resident agent in Malaysia

✅ Representative Office

Ideal for market exploration and networking.

• No commercial or profit-generating activities allowed
• Used for research, liaison, and marketing
• Fully funded by parent company
• No tax filing needed, but still must register with authorities

❌ Sole Proprietorship & Partnership

These are only available to Malaysian citizens or permanent residents. Foreigners without PR status cannot register these structures.

Step 2: Reserve Your Company Name

Your proposed business name must be approved by the Companies Commission of Malaysia (SSM). Use the MyCoID portal to:

• Conduct a name search
• Submit your preferred name
• Pay the RM50 reservation fee

Once approved, the name will be reserved for 30 days. You can extend this reservation if needed.

Step 3: Prepare Your Incorporation Documents

To setup a company in Malaysia, you’ll need to prepare the following:

• Proposed company name and business activity
• Copy of passport for all foreign directors/shareholders
• Residential address (local or overseas)
• Constitution (optional unless specific requirements apply)
• Declaration of compliance (Form 48F)
• Appointment of local company secretary (post-incorporation)
• Payment for registration fees (RM1,000 for capital under RM400,000)

Make sure all documents are accurate to avoid rejection during submission.

Step 4: Register the Company with SSM

Submit your full application online through MyCoID.

Once approved, you will receive the Certificate of Incorporation and your official Company Registration Number.

At this stage, your business is legally incorporated in Malaysia!

What to Do After Incorporation

After your company is registered, take these follow-up steps to begin operations:

• Open a corporate bank account in Malaysia
• Register with the Inland Revenue Board (LHDN) for tax purposes
• Apply for relevant business licences or sector-specific permits
• Register with SOCSO, EPF, and EIS if hiring employees
• Set up a proper bookkeeping and accounting system
• File annual returns and financial statements

Keeping up with post-incorporation compliance is essential to avoid penalties.

Can Foreigners Fully Own a Company in Malaysia?

Yes — but it depends on the industry.

• In liberal sectors, such as IT, digital marketing, consulting, and trading, you can own 100% of the company.
• In regulated sectors, like logistics, education, agriculture, and oil & gas, you may need to partner with a local shareholder or obtain additional approvals from government agencies such as MITI, MIDA, or Bank Negara Malaysia.

It’s best to consult an incorporation expert to check if your business activity has equity restrictions.

Benefits of Working with Incorporation Specialists

Navigating Malaysian regulations as a foreigner can be challenging. That’s why many investors partner with company registration experts like Grof to:

• Handle name reservations and SSM submissions
• Appoint a qualified company secretary
• Guide you on relevant licences and tax requirements
• Provide ongoing compliance support
• Ensure your company adheres to the Companies Act 2016

Frequently Asked Questions

🔍 Can I register a company in Malaysia without visiting?

Yes — many foreigners register remotely using local company secretaries and certified agents. However, some banks require in-person verification when opening a business account.

🔍 How long does it take to register a company?

Usually 1–3 working days if all documents are in order. Complex industries or incomplete forms may cause delays.

🔍 Is there a minimum capital requirement?

For most sectors, no. But certain industries may require a minimum paid-up capital, especially if you’re applying for work permits or licences.

Conclusion

Understanding how to register a company in Malaysia for foreigners gives you the confidence to make your move into one of Southeast Asia’s most promising markets. With low entry barriers and an efficient registration system, you can setup a company in Malaysia and start operations quickly.

If paperwork, legal terms, or SSM procedures feel confusing, let Grof handle it. From start to finish, we make company registration smooth, compliant, and stress-free.