Incorporate · Asia

Company Formation in Malaysia

Cost-competitive Southeast Asian base with a broad treaty network. Review the legal form, tax position, treaty network and indicative cost, then talk to one team that structures it end to end.

Licensed CSP
50+ yrs combined experience
15+ jurisdictions

Corporate tax: 24%
VAT / GST: Sales and Service Tax (SST) of 5% to 10%; no VAT
Formation: 1-2 weeks
Foreign ownership: 100% permitted in most sectors
Tax treaties: 75+
Setup cost: USD 1,500 - 4,000

At a glance

Common entity: Private Limited Company (Sdn Bhd)
Formation time: 1-2 weeks
Setup cost: USD 1,500 - 4,000
Annual cost: USD 2,000 - 5,000
Foreign ownership: 100% permitted in most sectors
Tax treaties: 75+

TradingManufacturingE-commerceConsulting and servicesHolding company

Best for

Cost-competitive Southeast Asian operations
Manufacturing and regional trading
Businesses wanting an onshore base with treaty access

Less ideal for

Founders wanting no resident-director requirement
Those seeking zero corporate tax onshore

Legal and formation

Legal system	Common law
Common entity types	Private Limited Company (Sdn Bhd)
Formation timeline	1-2 weeks
Minimum capital	MYR 1 (no meaningful minimum)
Foreign ownership	100% permitted in most sectors
Minimum shareholders	1
Minimum directors	2 (at least one resident in Malaysia)
Local presence	Resident director and company secretary required
Public registry	Directors and shareholders on the SSM register; beneficial owners on a separate register
Audit	Annual audit required (limited exemptions for dormant and small companies)

Tax profile

Corporate income tax	24% (reduced 15% to 17% on the first MYR 600,000 for qualifying SMEs)
VAT / GST	Sales and Service Tax (SST) of 5% to 10%; no VAT
Withholding, dividends	0%
Withholding, interest	15% (treaty reduced)
Withholding, royalties	10% (treaty reduced)
Capital gains	Generally not taxed (except certain real property and unlisted-share gains)
Territorial system	Yes
CFC rules	No
Participation exemption	Foreign-source income generally exempt subject to conditions

Every figure above is indicative. Rates, thresholds, minimum capital, ownership rules and timelines change and vary by activity, licence and structure. They are confirmed with the relevant authority and in a tailored quote before you rely on them. This is general information, not legal or tax advice.

How to set up in Malaysia

1
Reserve the company name with the Companies Commission (SSM)
2
Prepare the constitution and appoint a resident director and company secretary
3
File the incorporation application with SSM
4
Register for tax and, where applicable, SST
5
Open a corporate bank account (director presence usually expected)

Banking reality

Malaysian banks are functional but apply careful KYC on foreign-owned companies and generally expect the resident director to attend in person; onboarding typically takes one to a few weeks.