FDI Advice

Foreign Direct Investment

Setting Up a Sdn Bhd Company in Malaysia

3 min read
Sdn Bhd company in Malaysia

Sdn Bhd company in Malaysia

Malaysia has become one of the prime destinations in Asia for company registration. In Malaysia, foreigners can own 100% of the company if the company has been registered as a Sdn Bhd company.

The Companies Commission of Malaysia (SSM) is the governing body which oversees all company registration in Malaysia. The registration must be done through a local certified company secretary.

S&F Consulting Firm Limited & Co provides company registration services and our one-stop solutions will serve every business need you have so that you may quickly and effectively register your company in Malaysia.

Malaysia Company Registration Benefits

  • Strategic location in Asia
  • Ranked 15th by the World Bank in 2019 for ease of doing business
  • No restrictions when it comes to repatriation of capital, profits, royalties, and dividends
  • Double taxation treaties with many other countries
  • Low start-up costs and rental rates 

Those who register a Sdn Bhd company in Malaysia will experience the following benefit:

  • Limited liabilities
  • Business continuity because a Sdn Bhd company will never expire
  • Ease of acquiring loans
  • Low income tax risk exposure
  • Company is considered a separate legal entity

Important Points to Consider Before Registering a Company in Malaysia

There are certain points to be considered by those planning to register a company in Malaysia. They are as follows:

  • Business field
  • Business plan
  • Business entity
  • Licenses and approvals 
  • Registration costs

In the case of foreigners, other problems which may specifically arise with regard to foreigners living and working in Malaysia 

Business Entity Options in Malaysia

The types of business entities from which one may choose for the registration of a company in Malaysia are the sole proprietorship, partnership, and Sendirian Berhad (Sdn Bhd) company. The following paragraphs will explain more about the Sdn Bhd company and how one may be set up in Malaysia.

Incorporation of a Sdn Bhd Company in Malaysia

The process of registering a Sdn Bhd company in Malaysia is similar to the registration processes related to all of Malaysia’s other business entities. Before one may register a company in Malaysia, the prospective company owner is required to perform a company name search. This is a mandatory step. The chosen company name must be reserved for the incorporation process once it has been approved. The chosen company name will be reserved for a period of three months from the date of approval.

To register a Sdn Bhd company in Malaysia, the following are required:

  • Company name
  • Business activities
  • Registered office in Malaysia

Director who is at least 18 years old, not a convicted criminal during the last five years, not bankrupt, and either resides in Malaysia or holds any of the usable work visas


Corporate secretary who must be a member of any of the prescribed professional bodies, licensed by SSM, or both

  • Minimum paid-up capital of RM2
  • Copy of all directors’ and shareholders’ Identification Card (IC) or passport
  •  Duration of Each Step of Sdn Bhd Company Registration

Company Secretarial Services

A company secretary is an important part of a business as it is the company secretary who will have to deal with regulations, policies, standards, code of ethics, and guidelines during the company registration process. At Paul Hype Page & Co, our company secretarial services will ensure that our experienced corporate specialists will not only supply you with our best practices, but also provide you with our full range of services including advisory services, statutory services, preparation of resolutions, and others. All of our company secretarial services follow the regulations stipulated in the Malaysia Companies Act 2016.