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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Use OpenAccountants for Company Formation & Entity Choice in Malaysia.
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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
Pasting this into your AI section by section is slow and easy to get wrong. and it loads the whole Guide automatically — with dependency resolution and conservative defaults, every figure cited to its source.
Other Malaysia computations in the OpenAccountants Tax Library.
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.