Company Formation in Malaysia

Company formation & entity choice for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Malaysia · tax year 2025 · changed 25 Jun 2026

Approved by Muhammad Hanis Mat Hussin · 3 Nov 2026

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Key figures: Malaysia, 2025

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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

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Entity types, incorporation and compliance

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 proprietorship (Companies Act 2016 / Limited Liability Partnerships Act 2012)
Minimum paid-up share capital (Sdn Bhd) — RM1 MYR (Companies 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 Malaysia (Companies 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 sectors (Companies Act 2016)
Company secretary requirement — Must appoint a licensed company secretary within 30 days of incorporation (Companies Act 2016, Section 236)
SSM incorporation fee (Sdn Bhd) — RM1,000 (statutory fee via MyCoID) MYR (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 year (Companies 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 shareholders (Companies 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/EIS (Income Tax Act 1967 / Sales Tax Act 2018 / Service Tax Act 2018)

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Entity types, incorporation and compliance

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 proprietorship (Companies Act 2016 / Limited Liability Partnerships Act 2012)

Minimum paid-up share capital (Sdn Bhd) — RM1 MYR (Companies 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 Malaysia (Companies 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 sectors (Companies Act 2016)

Company secretary requirement — Must appoint a licensed company secretary within 30 days of incorporation (Companies Act 2016, Section 236)

SSM incorporation fee (Sdn Bhd) — RM1,000 (statutory fee via MyCoID) MYR (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 year (Companies 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 shareholders (Companies 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/EIS (Income Tax Act 1967 / Sales Tax Act 2018 / Service Tax Act 2018)