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How to register a company in Malaysia as a foreigner

Malaysia is one of the most accessible markets in Southeast Asia for foreign founders — most businesses can be 100% foreign-owned, and incorporation can be done remotely. This guide walks through exactly how it works: the right structure, what you need, the step-by-step process, the resident-director requirement, licences, timelines and costs.

Can a foreigner register a company in Malaysia?

Yes. A foreigner — as an individual or through a foreign company — can incorporate a Malaysian company via the Companies Commission of Malaysia (SSM) under the Companies Act 2016. For the majority of business activities, 100% foreign ownership is permitted, with no requirement for a local shareholder.

A minority of regulated sectors carry conditions — for example some distributive trade (which needs a WRT licence), oil & gas, education, and agriculture may require local or Bumiputera equity. We check your specific activity against the current rules before you commit.

Which structure? The Sdn Bhd

Almost all foreign founders incorporate a Private Limited Company — "Sendirian Berhad" (Sdn Bhd). It is a separate legal entity from its owners, gives limited liability (your personal assets are protected), and is the structure banks, clients and regulators expect. It supports 100% foreign shareholding and is straightforward to run with a licensed company secretary.

Other vehicles exist — a public company (Bhd), a company limited by guarantee (CLBG) for non-profits, and a limited liability partnership (LLP/PLT) — but for a foreign-owned operating business, the Sdn Bhd is almost always the right choice. See our business-structures guide for a full comparison.

What you need to register a Sdn Bhd

• At least one director aged 18+ who ordinarily resides in Malaysia (see below), not a bankrupt or recently convicted of certain offences.
• At least one shareholder — an individual or a corporate body. This can be 100% foreign.
• A company secretary — a licensed secretary appointed within 30 days of incorporation.
• A registered office in Malaysia, where statutory records are kept (commonly the company secretary's office).
• Paid-up capital — no legal minimum (from RM1), though a higher figure is often needed for licences, work passes or banking.
• A proposed company name, searched and reserved with SSM before incorporation.

The resident director requirement

This is the one point that catches most foreign founders. Under section 196(4) of the Companies Act 2016, a company must have at least one director who ordinarily resides in Malaysia (has a principal place of residence here). A 100% foreign-owned company still needs to meet this.

There are two ways to satisfy it:

• Relocate — the foreign owner moves to Malaysia on an Employment Pass and acts as the resident director.
• Resident director support — appoint a qualifying resident director through a written nominee arrangement, with proper indemnities and safeguards for both sides. This lets you set up and run the company remotely while you build a presence. See our Market Entry package.

Step-by-step: how registration works

After incorporation: bank account, licences & work permits

Corporate bank account

Foreign-owned companies can open a corporate account in Malaysia; banks apply their own due diligence and may want to meet a director. We liaise with the bank and prepare the paperwork — especially helpful for overseas shareholders.

Licences

Depending on your activity you may need a WRT licence (foreign-owned distributive trade), a manufacturing licence via MIDA (for larger manufacturers), or a local-council business premises & signboard licence. Full detail is in our setup & compliance guide.

Work permits

To employ yourself or foreign staff, you'll need the right pass — usually an Employment Pass (EP), graded by salary. For distributive-trade businesses a WRT licence is often a prerequisite for EPs. See the work-permits section.

Costs & timeline

We publish fixed fees for foreign market entry — incorporation of a Sdn Bhd from RM 4,500 (SSM fee, stamping and documents included), a named company secretary from RM 200/month with the registered office complimentary, and resident director support from RM 2,000/month. Licences (WRT, signboard, MIDA) are quoted on scope. See the full breakdown on our Market Entry page.

Timeline: incorporation itself is usually a few working days after documents are signed; the full setup — secretary, records, bank account and any licences — typically takes two to four weeks.

Frequently asked questions

Can a foreigner register a company in Malaysia?

Yes — you can incorporate a Sdn Bhd through SSM, and for most activities 100% foreign ownership is allowed. Some regulated sectors carry equity conditions.

Can a foreigner own 100% of a Malaysian company?

For most business activities, yes. Certain sectors (some distributive trade, oil & gas, agriculture) require local or Bumiputera participation.

Do I need to be in Malaysia to register a company?

No — incorporation can be completed remotely with e-signed documents. The company must, however, have a resident director and a registered office in Malaysia.

Do I need a resident director?

Yes — at least one director ordinarily resident in Malaysia (s.196(4), Companies Act 2016). You can relocate on an Employment Pass or use resident director support with proper safeguards.

What is the minimum paid-up capital?

No legal minimum — from RM1. A higher figure is often needed for licences (e.g. WRT needs RM1,000,000), Employment Passes, or banking.

How long does it take?

Incorporation typically completes within a few working days of signing; the full operational setup usually takes two to four weeks.

This guide is general information current as at July 2026 and is not legal advice. Requirements and fees are subject to change and to our Letter of Engagement — contact us for advice on your specific case.