Source-cited draft: company formation & entity choice for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Company registration authority
Companies are registered with the Companies Commission of Malaysia (SSM / CCM) under the Companies Act 2016. The private limited company (Sendirian Berhad / Sdn Bhd) is the most common vehicle for business.Companies Act 2016
Common entity types
Private limited company (Sdn Bhd), public limited company (Berhad), limited liability partnership (LLP/PLT), partnership, and sole proprietorshipCompanies Act 2016 / Limited Liability Partnerships Act 2012
Minimum paid-up share capital (Sdn Bhd)
RM1Companies Act 2016 (https://icomsec.com.my/registering-a-malaysian-private-limited-company-sdn-bhd-requirements-costs-timeline-complete-2026-guide/)
Minimum directors (Sdn Bhd)
At least one director who is a natural person, aged 18+, ordinarily resident in MalaysiaCompanies Act 2016, Section 196
Minimum shareholders (Sdn Bhd)
At least one shareholder (can be the same person as the director); 100% foreign ownership permitted in most sectorsCompanies Act 2016
Company secretary requirement
Must appoint a licensed company secretary within 30 days of incorporationCompanies Act 2016, Section 236
SSM incorporation fee (Sdn Bhd)
RM1,000 (statutory fee via MyCoID)Companies Act 2016 / Companies Regulations 2017 (https://kcgroup.biz/sdn-bhd-registration-malaysia-2026-guide/)
Incorporation timeline
Typically 1 to 5 working days once documents and name approval are in order (via SSM MyCoID portal) ((approx — varies by case))Companies Act 2016
Annual return lodgement
File annual return with SSM within 30 days of the anniversary of incorporation each yearCompanies Act 2016, Section 68 (https://arnifi.com/blog/malaysia-annual-return-ssm-filing-2026/)
Audited financial statements
Must be prepared and lodged with SSM; first within 18 months of incorporation, then within 6 months of financial year-end, lodged within 30 days of circulation to shareholdersCompanies Act 2016
Audit exemption for qualifying small companies
Dormant, zero-revenue, and threshold-qualified small companies may be exempt from statutory audit (subject to SSM criteria) ((approx — confirm current revenue/asset/employee thresholds))Companies Act 2016 / SSM Practice Directives
Tax registration after incorporation
Register for an income tax file number with LHDN; register for SST with RMCD if thresholds are met; register employees with EPF/SOCSO/EISIncome Tax Act 1967 / Sales Tax Act 2018 / Service Tax Act 2018
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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Other Malaysia computations in the OpenAccountants Tax Library.