Complete Guide on Registering a Sdn Bhd in Malaysia

Incorporation of Sdn Bhd

Setting up a private limited company (Sdn Bhd) is one of the most common methods for entering the Malaysian market. This type of company offers limited liability protection and is treated as a separate legal entity, meaning its debts and obligations are not tied to individual shareholders. The Malaysian government actively encourages business development and provides a relatively streamlined registration process.

Basic Requirement & Information

Under the Companies Act 2016, foreigner must prepare the below information to register a Sdn Bhd:

1. Company Name

• Must be unique and NOT similar to existing company names.

• Should be in English

• Must end with "Sdn Bhd"

2. Company Shareholders

• at least one shareholder

• Can be an individual or a corporate entity

• 100% foreign ownership is allowed

• Must have a residential address in Malaysia

3. Company Director

• at least one LOCAL director

• must be at least 18 years old

• Must have a residential address in Malaysia

4. Business Nature

• Up to 3 business activities

• Clear definition of primary business activity is needed

5. Business Address

• A physical office or factory address is required

• Tenancy agreement must be in the company’s name.

• If do not have an office, a virtual office address may be used

6. Financial Year End

• MUST set a company financial year end for annual report

• For FIRST year company may set within 18 months from date of incorporation

7. Paid Up Capital

• No Minimum Required，starting from RM1

• Specific capital thresholds may apply if involving application of working permit / specific license

Company Registration Process

A licensed company secretary will guide you through the registration with the Companies Commission of Malaysia (SSM). When all required documents are complete, the process typically takes 3–5 business days.

Step 1：Company Name Search

Company Secretary will assists to check whether is the proposed name is available and not identical to any existing company.

Step 2：Provide Registration Details to Company Secretary

Providing basic information, including shareholder & director details, company address, business nature and others

• Company registration basic information

• Director and Shareholder Identification (Malaysian Identity Card (IC) / Passport)

  
  

Company Secretary will based on the provided information prepare relevant forms / documents for incorporation.

Step 3：Submit Application to SSM

Company Secretary will submit all necessary documents to  Companies Commission of Malaysia (SSM) and pay the registration fee, RM1,010.

Step 4：Successfuly Incorporated

After the approval from the Companies Commission of Malaysia (SSM), the company secretary will issue the company registration certificate. This marks the official establishment of your company. The certificate contains essential information about the company, such as the company name, registration number, date of incorporation, and key details of shareholders and directors.

Once you receive the company registration certificate, you will be able to legally conduct business activities, signifying that your company has officially entered the market and possesses a legally recognized identity. However, before actually commencing operations, there are several important initial setups that need to be completed to ensure that your company can operate smoothly and achieve its intended business goals.

Essential Steps for Foreigners After Registering a Company in Malaysia

Successfully registering a company is just the first step. Before officially commencing business operations, there are several important matters that need to be addressed. Here is a checklist to ensure your company operates in compliance and smoothly in Malaysia.

Essential Post-Registration Checklist:

• Open a company bank account

• Lease an office or business premises (sign a lease agreement)

• Apply for utility services - water (PBA), telephone and internet (TM), electricity (TNB)

• Apply for business licenses and permits

• Register for employer accounts

We hope this guide will assist you in your entrepreneurial journey in Malaysia. If you have any questions, feel free to consult a company secretary or legal advisor at any time.