Frequently Asked Questions
What you need to know about incorporation of a company in Malaysia
1. What are the main requirements for setting up a private limited company in Malaysia?
- Minimum one (1) director
- Minimum one (1) shareholder
- Minimum one (1) nature of business
- Minimum one (1) company secretary
2. Do I need a local director?
Every private limited company must have at least one (1) director with ordinary residence in Malaysia. That can be yourself or a qualified person residing in Malaysia. If you are the sole director of the company and you are not a Malaysia citizen, we may request for your visa details.
Who can qualify as a director?
To be a director of a private limited company in Malaysia, you must be at least 18 years old, reside in Malaysia, are not an undischarged bankrupt, have not been disqualified by the Court or convicted of an offence involving bribery, fraud, or dishonesty.
Can I incorporate with just one (1) director and one (1) shareholder?
Yes, provided the sole director is residing in Malaysia.
What is the minimum share capital to incorporate a new private limited company in Malaysia?
The minimum share capital required to set up a private limited company is RM1.00 (Ringgit Malaysia One).
Can I, as a foreigner, hold 100% shares in the Company?
Yes. There is no restriction for foreign ownership when setting up your company in Malaysia.
What if I do not have a business or registered address in Malaysia?
You may operate your business at any other address, which would then constitute as your business address. However, your business address is not necessarily the same as the registered address. A registered office address is where all your company’s documents, as ordered by the Companies Act 2016, need to be kept. We provide our registered office address as a service.
Must I be present in Malaysia to incorporate a new private limited company?
No. As we are digital, it is possible to incorporate a new private limited company virtually without the need for you to be physically present in Malaysia. However, to set up a Malaysia bank account, the banks may still require a director to be present.
How long does it take to incorporate a new private limited company in Malaysia?
It takes about 3 working days to register your new private limited company, subject to the approval by the Registrar.
What are the next steps after incorporation?
- Appoint a named Company Secretary
- Fix the Financial Year End
- Nominate and Appoint Auditors
- Appoint Tax Agent
- Hold the First Board Meeting
- Open business bank account
- Set up the Register of Beneficial Owners
Do you need a company secretary?
Yes. Every private limited company in Malaysia must appoint a company secretary within 30 days from its date of incorporation.
What is the Register of Beneficial Owners? Does my company need to set up one?
All entities (except exempted companies such as Malaysia financial institutions, Securities Commission Malaysia licensed companies, public listed companies, and public un-listed companies where shares are maintained in the central depository) are required to set up and file a Register of Beneficial Owners with the Registrar within 30 days from the date of appointment of the company secretary.
What are the consequences for non-compliance on the setting up of the Register of Beneficial Owners?
Director(s) of the company may be subject to enforcement action and penalties for any non-compliance.
I do not have any local director. Can you provide one?
If you require a local director, we do provide the service of local nominee director at a fee.
What types of business structures are available in Malaysia?
Below are a few types of business structures that is popular in Malaysia: –
- Sole Proprietorship and Partnership
- Private Limited Companies
- Limited Liability Partnership
Please reach out to us if you need help deciding which is suitable for your business.
Why set up our business in Malaysia?
Malaysia, strategically located in the heart of South East Asia, offers a cost-competitive location for investors. Malaysia has transformed from a country dependent on agriculture and primary commodities into one of the most diversified and fast-growing economies in South East Asia. The Malaysian government continues to ensure that the country remains an attractive business destination for investments and puts in efforts to drive productivity and innovation through political, economic, and regulatory reforms.