Company formation for non-residents
We register a Sdn Bhd (Sendirian Berhad) - a private limited company for trade, services, IT and entering the Malaysian market. We prepare the company Constitution, reserve the name, appoint a licensed company secretary and arrange the resident director requirement. We file through the SSM MyCoID portal, handle tax registration with LHDN and SST registration where applicable, and support opening a corporate bank account with a local bank. Most of the process is handled remotely.
A quick overview of the corporate, tax and annual requirements of the Malaysian jurisdiction for non-residents.
Sendirian Berhad is a private limited company under the Companies Act 2016. It is the standard structure for foreign-owned business, regulated by SSM.
Full foreign ownership is allowed in most sectors, including services, IT, trade and e-commerce. Certain regulated industries require local participation or specific licences.
At least one director must ordinarily reside in Malaysia, and at least one shareholder is required. A non-resident founder can be a shareholder. A local registered address is required.
Resident companies with SME status use progressive rates of 15% / 17% / 24%. The standard rate is 24%. Service tax under SST is 8% once turnover exceeds RM500,000.
There is virtually no formal minimum - technically from RM1. In practice, a bank account, an employment pass and licences in trading sectors require significantly more.
Annual financial statements are filed with SSM, and the corporate tax return (Form C) is filed with LHDN within 7 months of the financial year-end. An audit is required, except for small companies that qualify for exemption.
The final cost depends on the chosen package, industry, capital size and any additional project tasks.
Data current as of July 2026.
From basic Sdn Bhd registration to a full launch with a registered address and a corporate account with a Malaysian bank.
Company registration only
A fully registered Sdn Bhd with a complete set of incorporation documents.
With registered address and account
A company ready for operations: secretary, registered address and tax setup.
With foreign currency account
A fully operational company with a multi-currency account and priority support.
Resident director: under the Companies Act 2016, a company must have at least one director who ordinarily resides in Malaysia. Where needed, we provide a local resident director service - arranged on a case-by-case basis.
Banking support does not guarantee that an account will be opened. The final decision rests with the bank after reviewing the company profile and beneficial owners.
Malaysia suits projects that need 100% foreign ownership in most sectors, reliable banking infrastructure and a presence in the ASEAN region within an English-speaking business environment.
A company for trading agents, import and export. Run cross-border operations through a local entity with access to Malaysia's ports and logistics as a hub of Southeast Asia.
A local entity to work with Malaysian clients, sign contracts and hire staff on the ground. Full foreign ownership is available in most service sectors.
Software, SaaS and digital services. Eligible projects can obtain Malaysia Digital (MD) status from MDEC, with tax incentives and simplified hiring of foreign talent.
Export-oriented manufacturing projects. MIDA incentives such as Pioneer Status and Investment Tax Allowance are available, along with free industrial zones offering customs relief.
Direct access to the ASEAN region and a market of hundreds of millions of consumers, with well-developed logistics, ports and Asian supply chains.
Over 70 double taxation agreements that reduce withholding tax on cross-border payments.
For priority sectors, Pioneer Status offers 70–100% income exemption for 5–10 years, alongside incentives for digital companies under the Malaysia Digital programme.
English is widely used in business, banking and government, and the legal system is based on common law - which makes life easier for foreign businesses.
To register a Sdn Bhd you will need the participants' documents, at least one shareholder and one resident director, a Constitution and a unique company name ending in Sdn Bhd. Documents of non-residents are certified and, where required, notarised or apostilled. Most of the preparation is handled remotely.
The set of documents depends on the industry and ownership structure. Non-resident documents are certified as true copies, and in some cases notarisation or an apostille in the country of origin is required.
Full 100% foreign ownership is allowed in most sectors, including services, IT, trade and e-commerce. Certain regulated industries require local participation or specific licences.
At least one shareholder and at least one director who ordinarily resides in Malaysia. A non-resident founder can be a shareholder. Shareholders may be individuals or corporate entities.
There is virtually no formal minimum - technically from RM1, and the full capital does not need to be paid up at registration. In practice, an employment pass and licences in trading sectors require significantly more.
A registered address in Malaysia where the statutory records are kept. This is often the company secretary's address. For banking and visa purposes, a physical office is preferable to a virtual one.
The company keeps accounting records and appoints an auditor unless it qualifies for the small-company exemption. Annual accounts are filed with SSM, and the corporate tax return (Form C) is filed with LHDN within 7 months of the financial year-end.
Malaysia taxes profits earned in the country on a territorial basis. The overall burden depends on SME status, industry, incentive schemes and timely filing with LHDN.
15–24%
A progressive scale of 15% / 17% / 24% for companies with SME status. The standard rate is 24%.
Territorial
Tax applies to income earned in Malaysia. Foreign income is taxed when remitted, with a number of exemptions.
7 months
Form C is filed within 7 months of the financial year-end.
CP204
An estimate of tax payable, paid in monthly instalments towards the annual tax.
The standard corporate tax rate in Malaysia is 24%. Companies with SME status use a progressive scale of 15% / 17% / 24% on the first RM600,000 of income.
Only income earned in Malaysia is taxed. Foreign income is taxed when remitted, with exemptions available under certain conditions and schemes.
Malaysia applies Sales and Service Tax (SST) instead of VAT. Service tax registration is required once turnover exceeds RM500,000 a year, at a rate of 8%.
Payments to non-residents are subject to withholding tax: 15% on interest, 10% on royalties and services. Dividends are not subject to withholding tax. Rates are reduced under double taxation agreements.
Keep accounting records under MFRS and file with LHDN
Prepare annual financial statements and undergo an audit unless the company qualifies for the small-company exemption
File the corporate tax return within 7 months of the financial year-end
Submit an estimate of tax payable and make monthly instalments
File the annual return and updates with SSM
Set up e-invoicing where required
Maintain compliance with SST and withholding tax on payments to non-residents
SME status applies to companies with paid-up capital of up to RM2.5 million and turnover of up to RM50 million a year. Payments to non-residents may trigger withholding tax obligations.
Data current as of July 2026.
The banking route depends on the company's activity, payment geography and beneficial owner profile. Depending on the goal, we select Malaysian banks for ringgit operations and solutions for accepting payments and working with marketplaces.
For day-to-day operations and settlements in ringgit within the country. We match the bank to your company profile, with options including Maybank, CIMB Bank and Public Bank.
For retail sales and working with marketplaces. Accept payments via DuitNow QR and FPX online banking, and use payment gateways such as iPay88 and Fiuu for integration.
We prepare the company profile before submission to address the bank's requirements and currency-control checks in advance.
We assess the activity, payment geography and bank requirements before submission.
Мы сопровождаем проект от предварительной проверки до получения корпоративных документов и выполнения согласованных дополнительных задач. Мы выступаем в роли корпоративного агента в соответствии с требованиями Малайзии.
We review the ownership structure, participants, MSIC codes and source documents, and check the client-verification requirements before we begin.
We clear the company name, prepare the Constitution, and manage the filing through the SSM MyCoID portal and the issuance of the Notice of Registration.
We help with the resident director and the appointment of a licensed company secretary, and arrange the registered address to match the chosen package and business activity.
Where needed, we help with industry licences, arrange tax registration with LHDN and register the company for tax.
The process covers an initial review, name reservation, preparing the Constitution, filing through the SSM portal and receiving the Notice of Registration. We handle most stages remotely.
Malaysia is not the answer to every task. In some cases it is more honest to consider another jurisdiction, and we will help you find the right one.
By law, a company must have at least one director who ordinarily resides in Malaysia. Without a local partner, a resident director service is needed, which does not suit every project.
Worth considering: Hong Kong, Singapore, BVI
Malaysia levies a real corporate tax of 15–24% and reporting with LHDN. For holding and passive structures where a minimal tax burden matters, classic offshore jurisdictions are simpler.
Worth considering: BVI, Seychelles, Belize
Even with the audit exemption, a company must appoint a company secretary, keep records and file with SSM and LHDN. For projects with minimal activity, simpler structures are a better fit.
Worth considering: Seychelles, Belize, BVI
In certain sectors, such as trade and retail, foreign ownership requires a licence and higher capital, and some industries require local participation. For such projects, the structure is arranged individually.
Worth considering: Hong Kong, Singapore, Indonesia
Not sure whether Malaysia fits your project? In a consultation we will assess the task honestly and recommend the best jurisdiction, even if it is not Malaysia.
If Malaysia is not a full fit in terms of structure, tax burden or maintenance costs, compare the alternatives across key parameters.
| Jurisdiction | Best for | Taxes | Maintenance | Banks |
|---|---|---|---|---|
 Hong Kong | Best for International trade, IT, holding companies, working with Asia. | Taxes 8.25% / 16.5%, territorial basis. | Maintenance Moderate, annual audit. | Banks Banks and fintech, but strict compliance. |
 Singapore | Best for Holding companies, IT, fintech, regional headquarters in Asia. | Taxes 17% rate, incentives for start-ups. | Maintenance Moderate, transparent requirements. | Banks Banks and fintech, strict compliance. |
 China | Best for Manufacturing, trade, access to the domestic market. | Taxes Standard rate 25%, incentives for high-tech. | Maintenance Strict, mandatory annual audit. | Banks Local banks, strict currency controls. |
 Thailand | Best for Local market, trade, tourism, manufacturing. | Taxes Standard rate 20%, progressive scale for small companies. | Maintenance Strict, mandatory annual audit for all companies. | Banks Thai banks, strict compliance for non-residents. |
We will help you compare jurisdictions by taxes, banks, annual costs and structural requirements for your specific task.
Every project is unique – we tailor the solution to the client's specific task, jurisdiction and business model.
Malaysia The client had worked with Asian customers as a sole individual for years but kept hitting a ceiling: without a local company he couldn't sign proper contracts or invoice as a business. He needed a company and a ringgit account.
Solution We registered a Sdn Bhd, sorted out the resident director, registered with LHDN and helped open a corporate account. Most of it was done remotely – the client flew in only for the bank meeting.
What held me back most was the whole resident director thing – I thought it would be a headache. They explained how it all works, and within a couple of weeks I had a company and an account. Clients started taking me more seriously right away.
Malaysia They sold products through a middleman and lost money on commissions and delayed payouts. They wanted their own entity in Malaysia, to accept payments directly and stop depending on someone else's account.
Solution We set up a Sdn Bhd, connected payments via DuitNow QR and FPX online banking, and set up a corporate account in ringgit. We helped put together the shop's profile for the bank review.
We thought the bank would be the main problem, but the team gathered all the documents in advance and explained exactly what the bank wanted to see. Payments now come in directly and we no longer need the middleman.
Malaysia The client ran cross-border trade with Asian suppliers, but settlements went through third parties. They needed their own company in Malaysia to act as a trading agent and settle with counterparties directly.
Solution We matched the business activities to import and export using MSIC codes, registered a Sdn Bhd, arranged tax registration and opened an account for foreign trade operations.
I kept putting it off because the paperwork and the local director seemed complicated. In reality almost everything was done remotely, and settlements with partners became more transparent. I only wish I'd done it sooner.
If you can't find the answer to your question, leave a request and we'll review your situation personally.
Get a consultationWith a complete set of documents, the Notice of Registration from SSM is usually issued within 1–3 working days of filing. Including preparation, name reservation and checks, the full cycle takes from 5 working days. Opening a corporate account is handled separately and is not part of the registration timeline, as it depends on the bank's review.
Yes. Registration through the SSM MyCoID portal is done online, and physical presence in Malaysia is not required for filing — documents are signed remotely. An in-person visit is usually only needed to open a bank account: some banks require a meeting, while others accept video identification. Non-resident documents are certified, and in some cases notarisation or an apostille is required.
Yes. Under the Companies Act 2016, a Sdn Bhd must have at least one director who ordinarily resides in Malaysia. A non-resident founder can be a shareholder and own the company, but a resident director is usually needed to meet this requirement. If the client has no local partner, we provide a resident director service, arranged on a case-by-case basis.
There is virtually no formal minimum — technically a company can be registered with capital from RM1, and the full capital does not need to be paid up at registration. In practice, opening a bank account, obtaining an employment pass and licences in trading sectors require significantly more — often from RM500,000. We match the right capital level to your specific task.
Malaysia taxes profits on a territorial basis — tax is paid on income earned in the country. The standard corporate tax rate is 24%. Companies with SME status use a progressive scale of 15% / 17% / 24% on the first RM600,000 of income. Instead of VAT, Malaysia applies Sales and Service Tax (SST): service tax registration is required once turnover exceeds RM500,000, at a rate of 8%.
Opening a corporate account is not a condition of registration itself, but it is essential for running the company. Malaysian banks review foreign directors and business models closely, so we prepare the company profile and a full document set to meet the bank's requirements in advance. Banking support does not guarantee an account will be opened — the final decision rests with the bank after reviewing the profile and beneficial owners.
The company keeps accounting records under MFRS, prepares annual financial statements and files them with SSM. The corporate tax return (Form C) is filed with LHDN within 7 months of the financial year-end, along with an estimate of tax payable (CP204) and monthly instalments. An audit is required, except for small companies that qualify for exemption. The company also appoints a licensed company secretary.
In most sectors — services, IT, trade, e-commerce, consulting — 100% foreign ownership is allowed. However, there are regulated and strategic industries with local participation requirements or specific licences: for example, wholesale and retail trade require a licence and higher capital, and some sectors require a local partner. Before registration, we check whether 100% ownership is permitted for the specific business activity.
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