A Comprehensive Guide: How to Register a Company in Malaysia

Ready to turn your entrepreneurial vision into reality? Registering a company in Malaysia is your first step toward establishing a strong foothold in one of Southeast Asia’s most dynamic economies.

With a range of business structures to choose from—each offering unique advantages, liabilities, and compliance requirements—Malaysia makes it easy to find the perfect fit for your goals to start business in Malaysia.

This guide is your ultimate roadmap, packed with step-by-step instructions for how to register a company in Malaysia, practical tips for managing taxation and licensing, and expert insights to help you choose the ideal business structure to kickstart your journey. 

Key Takeaways

• Ensure legal compliance, build credibility, and access business benefits like grants and corporate bank accounts.

• Understand the unique features of Sole Proprietorship, Partnership, LLP, and Sdn Bhd to choose the right structure for your business.

• Opt for LLP if you seek limited liability with minimal compliance; choose Sdn Bhd for scalability, liability protection, and investor readiness.

• Address foreign ownership rules, industry-specific licenses, tax registration, and ongoing compliance to meet regulatory requirements.

• Follow a structured process to register business in Malaysia: decide your business type, reserve your company name, prepare documents, register with SSM, and open a corporate bank account.

• Overcome obstacles like naming conflicts, incomplete documentation, and approval delays by engaging professionals and planning ahead.

6 Reasons to Register a Company in Malaysia

 

Registering a company in Malaysia meets legal obligations and unlocks significant opportunities for entrepreneurs and investors.

1. Legal Compliance

Operating a registered company ensures your business adheres to Malaysian laws and regulations, avoiding penalties and legal complications.

It also establishes your business as legitimate in the eyes of the law.

 

2. Credibility and Trust

A registered business gains credibility among customers, investors, and partners.

It reflects professionalism and reliability, critical for building long-term relationships and trust.

 

3. Access to Business Benefits

Registered companies can open corporate bank accounts, which is essential for managing finances professionally.

They also become eligible to apply for government grants and financial incentives, and participate in tenders or large-scale projects.

 

4. Liability Protection

For structures like Sdn Bhd (Private Limited Company), registration protects personal assets by limiting liability to the company’s finances, safeguarding you against unexpected business risks.

 

5. Tax Incentives and Benefits

Malaysia offers tax incentives for registered businesses, including reduced corporate tax rate for SMEs and exemptions for specific industries.

These benefits can significantly lower operating costs and increase profitability.

 

6. Scalability and Growth Opportunities

Registering your company allows you to attract investors, access funding, and enter into contracts, enabling seamless business expansion and scalability.

 

4 Types of Companies to Register in Malaysia

Whether you’re a solo entrepreneur, a partnership, or planning to scale with investors, understanding these options can help you make informed decisions tailored to your business goals.

For accurate and up-to-date information about the type of companies, visit official Malaysian government websites like the Companies Commission of Malaysia (SSM), Lembaga Hasil Dalam Negeri Malaysia (HASiL)or relevant industry authorities.

Below is a screenshot table from SSM about the comparison between types of companies in Malaysia as reference.

 

LLP vs Sdn Bhd: Which Business Structure is Right for You?

It’s crucial to consider factors before deciding whether to register a Limited Liability Partnership (LLP) or a Private Limited Company (Sdn Bhd) in Malaysia.

Here’s a detailed comparison to help you make an informed choice:

LLP		Sdn Bhd
Offers limited liability to partners, protecting their personal assets from business debts unless fraudulent activity occurs.	Liability Protection	Provides full liability protection to shareholders, ensuring personal assets are safeguarded against company liabilities.
Recognised as a separate legal entity but functions more flexibly like a partnership.	Legal Status	Fully separate legal entity from its owners, offering a more structured and formal corporate status.
Requires fewer compliance obligations, such as annual solvency declarations and basic filings. No audits are necessary.	Compliance and Reporting	Requires annual audits, financial filings, and appointment of a company secretary.
Taxed at the partner level, meaning income is added to individual partners’ tax returns.	Taxation	Subject to corporate tax (currently 24%) but may qualify for SME tax incentives, reducing the rate for the first RM600,000 of taxable income.
Limited in scalability as it cannot issue shares or attract equity investors.	Scalability and Funding	Designed for scalability, allowing the issuance of shares to raise share capital from investors.
Decisions are guided by the LLP agreement, providing flexibility for partners.	Decision Making	Decisions are made by directors and shareholders based on corporate governance structures.

An LLP is ideal for professionals such as lawyers or accountants or small businesses that prioritise limited liability while keeping compliance simple and straightforward.

On the other hand, register Sdn Bhd is better suited for businesses with plans to scale, attract investors, or operate in industries that demand a formal corporate structure.

You can find out more about the requirements for incorporation of companies based on the type of companies in Malaysia.

 

5 Key Considerations for SSM Company Registration

Several important factors must be considered during registration to ensure your business operates smoothly and complies with Malaysian laws.

1. Foreign Ownership Rules

Wondering how to register a company in Malaysia for foreigners? The following specific regulations and requirements are:

• Industry Restrictions: Certain sectors, such as telecommunications and retail, have foreign ownership limitations.
• Minimum Paid-Up Capital: Foreign-owned companies typically require higher capital, ranging from RM500,000 to RM1 million, depending on the industry.
• Work Permits and Visas: Foreign directors or shareholders must obtain the appropriate Employment Pass or visa.

Why It Matters: Understanding these rules helps you navigate potential restrictions and ensures compliance with government policies.

Can foreigners register a company in Malaysia? Yes, foreigners can register a company in Malaysia. Most foreign investors opt for a Foreign-Owned Sdn Bhd. Certain industries have higher paid-up capital requirements (e.g., RM500,000–1 million) and foreign ownership restrictions, which Grof can help navigate.

 

2. Business Licensing and Permits

After registering your company, you may need additional licenses or permits to operate legally:

• General Licenses: Business premises license, signage license, or local council approvals.
• Industry-Specific Licenses:
  • F&B: Food handling permits and Halal Certification.
  • Construction: CIDB registration.
  • Healthcare: Approvals from the Ministry of Health.
• Environmental Permits: Required for businesses in manufacturing or industries impacting the environment.

Why It Matters: Applying for the proper licenses ensures your business complies with regulations and avoids fines or operational disruptions.

 

3. Corporate Governance and Compliance

Maintaining compliance is crucial for business continuity:

• Annual Returns: Companies must submit annual returns and audited financial statements to SSM.
• Company Secretary: Sdn Bhd companies must appoint a qualified company secretary to handle filings and compliance matters.
• Maintaining Records: Accurate records of directors, shareholders, and meeting resolutions must be kept and updated regularly.

Why It Matters: Regular compliance helps maintain your company’s good standing with authorities and builds trust with clients and investors.

Tips on understanding licensing and compliance

• Research requirements for your industry through relevant authorities.
• Seek expert assistance in identifying and applying for licenses.
• Set reminders for license renewals.

Do I need a company secretary to register a company? Appointing a company secretary is mandatory for Sdn Bhd companies. They handle compliance, statutory filings, and administrative duties. Sole Proprietorships, Partnerships, and LLPs do not require a company secretary. Grof offers company secretary services for Sdn Bhd businesses.

 

4. Tax and Employee Contributions

Tax registration and employee benefits are integral parts of running a registered business:

• Corporate Tax Registration: All companies must register with the Inland Revenue Board (LHDN) and file annual tax returns.
• Sales and Service Tax (SST): Businesses with an annual turnover exceeding RM500,000 must register for SST.
• Employee Benefits: Register for EPF, SOCSO, and EIS contributions so that all employees comply with labour laws.

Why It Matters: Proper tax registration and employee benefits ensure legal compliance and help build a reputable business.

What taxes do Malaysian companies need to pay? Malaysian companies are subject to corporate tax (currently 24%). Companies with turnover exceeding RM500,000 may also need to register for Sales and Service Tax (SST). Businesses hiring employees must contribute to EPF, SOCSO, and EIS. Grof provides tax registration and compliance support.

 

5. Business Insurance

Securing insurance protects your business from potential risks and liabilities:

• General Liability Insurance: Covers accidents and property damage.
• Professional Indemnity Insurance: Ideal for service-based businesses.
• Specialised Insurance: Product liability or cargo insurance for specific industries.

Why It Matters: Insurance safeguards your company’s assets and ensures business continuity during unforeseen events.

 

7 Key Tips in Obtaining a Company Registration Certificate with SSM

 

Registering a company in Malaysia is straightforward, with simple steps that make the journey smoother and stress-free.

Here’s a simple guide to how to register a enterprise company in Malaysia:

1. Decide on the Business Type

Choose the right business structure that aligns with your business goals and needs.

Consider liability, taxation, compliance, and scalability factors when making decisions.

2. Reserve Your Company Name

Secure a unique and compliant company name through the Companies Commission of Malaysia (SSM). This involves:

• Checking name availability using the SSM online portal (also known as EzBiz Online).
• Ensure the name follows SSM guidelines, avoiding prohibited or offensive terms.
• Pay the required name reservation fee.

Example: You would need to check the SSM website before you plan to name your company ShopnSave Sdn Bhd to ensure no other companies have this name.

How much does it cost to register a company in Malaysia? The cost depends on the business type. You may refer to the Registration of Company (ROC) fees (No_FollowLink) for various applications for SSM costs. Additional costs may include name reservations, licensing, and professional services.

Once approved, the reserved name with your business registration number Malaysia is valid for a specific period, allowing you time to proceed with registration.

Check out Grof’s pricing for local businesses and foreign entrepreneurs for more details.

3. Prepare the Required Documents

The required documents vary depending on the business structure.

	Required Documents
Sole Proprietorship and Partnership	MyKad/Passport of the owner(s). Business name approval.
LLP	LLP agreement outlining partner responsibilities. MyKad/Passport for all partners.
Sdn Bhd	MyKad/Passport for directors and shareholders. Company constitution (formerly Memorandum and Articles of Association). Declaration of compliance (Form 48A).

Having all signed and dated documents, aligned with requirements for your business type, ready ensures smooth submission without delays.

 

4. Register Your Company with SSM

Submit your application via the MyCoID portal :

• Log in and fill out company details, such as business activities, directors/shareholders’ particulars, and registered addresses.
• Upload all required documents.
• Pay the registration fee (e.g., RM30 for Sole Proprietorship, RM1,000–RM2,000 for Sdn Bhd).

How long does it take to register a company in Malaysia? Approval typically takes 1–5 business days, after which you’ll receive your Certificate of Registration. The exact timeframe may vary based on the business type and SSM’s processing speed. Do I need an office address to register a company? Yes, all companies must provide a registered business address during registration. This address will be used for official correspondence and statutory filings. Virtual office services can be used as the registered address for startups or small businesses.

Tips to follow-up on approval process:

• Submit applications early to allow for processing time.
• Follow up regularly with SSM on your application status.

 

5. Open a Corporate Bank Account

A corporate bank account is crucial for managing business transactions and maintaining financial transparency. To open an account, you’ll need:

• Certificate of Registration.
• Identification documents of directors/shareholders.
• A company resolution authorising the account opening (for Sdn Bhd).

Here are the following banks in Malaysia offer tailored SME banking solutions to get you started:

OCBC Bank

Maybank

CIMB Bank

HSBC Bank

6.  Obtain Necessary Business Licenses and Permits

To legally operate your business in Malaysia, you may need to secure specific licenses or permits based on the nature of your industry and business activities. 

These licenses ensure compliance with local regulations and industry standards.

Common Types of Licenses

General Business Licenses

• Local council business operating licenses.
• Signage permits for displaying your business name or advertisements.

Industry-Specific Licenses

• F&B Industry: Food handling permits, Halal Certification, and health and safety licenses.
• Construction Industry: CIDB registration and safety compliance certificates.
• Healthcare Industry: Approvals from the Ministry of Health.

Specialised Permits

• Environmental permits for industries that impact the environment, such as manufacturing.
• Import/export permits for businesses involved in cross-border trade.

How to Apply

• Research the specific licenses required for your industry. The Companies Commission of Malaysia (SSM) and industry-specific bodies like CIDB or MIDA provide detailed guidelines.
• Prepare the necessary documentation, such as your company registration certificate, floor plans, and safety compliance records.
• Submit applications to the relevant authority (e.g., local municipal councils, regulatory bodies).

7. Register for Tax and Employee Contributions

To stay compliant, complete registrations for Corporate Tax, Sales and Service Tax (SST), and Employee Contributions.

Corporate Tax Rates

Corporate tax rates for Malaysian tax rates range from 15% to 24%. Stay updated on the latest corporate taxes announced by LHDN Malaysia.

Sales Service Tax (SST)

Businesses with an annual turnover exceeding RM500,000 must register for SST to ensure legal compliance and avoid penalties.

Visit the SST portal to learn more and register your business today.

Employee Contribution Requirements in Malaysia

Businesses need to give employer’s and employees share of the monthly salary to the EPF.

Learn more about KWSP’s EPF contributions.

Not sure how to register your business or obtain the necessary licenses? GROF offers end-to-end assistance to make the process simple and hassle-free. Contact our corporate service provider today to get started!

Grof’s Services for Company Registration Support in Malaysia

 

Grof provides business incorporation services that simplify the company registration process in Malaysia, providing expert assistance at every stage to ensure a hassle-free experience.

1. Business Structure Advisory

Grof helps you evaluate your goals, liability needs, and compliance requirements to determine whether a Sole Proprietorship, LLP, or Sdn Bhd best fits your business.

2.  Name Search and Reservation

Our team helps you find and reserve a unique company name that adheres to SSM’s regulations, ensuring a smooth and compliant registration process.

By conducting name availability checks and submitting the reservation on your behalf, Grof ensures this step is quick and error-free.

3. Document Preparation

We ensure all necessary paperwork—such as MyKad/Passport copies, the company constitution, and compliance declarations—is complete and accurate before submission.

4. End-to-End Registration Support

From creating your MyCoID account to submitting your application, Grof handles every aspect of the registration process.

This includes filling out company details, uploading documents, and paying the registration fees, ensuring a smooth and efficient process.

5. Foreign Investor Assistance

For foreign entrepreneurs, Grof provides tailored services to navigate Malaysia’s regulations, including:

• Meeting paid-up capital requirements.
• Securing necessary visas and work permits.
• Complying with industry-specific ownership restrictions.

6. Ongoing Compliance Services

We provide ongoing support for statutory filings, annual returns, and compliance with SSM’s requirements to keep your business in good standing.

We also provide company secretary services, which are mandatory for Sdn Bhd companies.

7. Tax and Licensing Advisory

Guidance is provided for the tax registration process with LHDN, along with assistance in determining the need for SST registration.

We also assist in obtaining the necessary licenses and permits for your specific industry, ensuring your business is fully compliant.

8. Corporate Bank Account Setup

Opening a corporate bank account is crucial for managing business finances.

Grof guides and assists in preparing the required documents and completing the bank account setup process.

With a focus on professionalism and efficiency, Grof’s comprehensive services ensure your business starts on the right foot.

Conclusion

Ready to turn your business dreams into reality? Registering a company in Malaysia is your gateway to success in one of Southeast Asia’s most dynamic and opportunity-filled markets. 

Whether you’re a local entrepreneur looking to formalise your business or a foreign investor navigating ownership and compliance rules, the process is manageable and rewarding with the right knowledge and support.

Understanding the key differences between Sole Proprietorship, LLP, and Sdn Bhd allows you to choose a structure tailored to your goals.

With tips to overcome common challenges, such as naming conflicts and documentation errors, you’re equipped to handle the registration process efficiently

Additionally, addressing post-registration requirements, including licensing, taxation, and employee contributions, ensures your business remains legally compliant and well-positioned for growth.

If you’re unsure about the next steps, expert assistance is always at hand. Let Grof be your corporate services provider to simplify the process and guide you every step of the way. 

If you need assistance with SSM registration, tax compliance, or ongoing support for statutory filings, we’re here to make the process of registering your company in Malaysia seamless and stress-free.

Your journey to business success starts today—reach out and let’s get started!