The Complete Guide to Company Incorporation in Malaysia for SMEs & Foreign Companies
Malaysia has emerged as a popular destination for business setup in Southeast Asia. Its strategic location, competitive tax rates, and supportive regulatory environment make it attractive for both local entrepreneurs and foreign investors. Setting up a Sendirian Berhad (Sdn Bhd) company in Malaysia is relatively straightforward, especially when the requirements and procedures are well understood
Why Set Up a Company in Malaysia?
✅ Strategic Location in ASEAN
Malaysia is centrally positioned in Southeast Asia, offering easy access to neighbouring markets such as Singapore, Thailand, and Indonesia. This makes it a favourable base for regional logistics, trade, and digital operations.
✅ 100% Foreign Ownership Allowed
In most sectors, Malaysia permits 100% foreign ownership without the need for a local partner, making it one of the most open economies in the region.
✅ Attractive Corporate Tax Rates
Malaysia offers a progressive tax structure that supports SMEs:
- 15% on the first RM150,000 of chargeable income
- 17% on the next RM450,000
- 24% for income beyond that
Additional tax incentives are available under government programmes such as MSC Malaysia, MIDA, and Malaysia Digital.
✅ Lower Setup and Operating Costs
Incorporation and operational costs in Malaysia are generally lower than in Singapore or Hong Kong, making it ideal for startups and growing businesses.
✅ Skilled, Multilingual Workforce
With a well-educated talent pool and widespread English proficiency, Malaysia provides a business-friendly environment for communication and operations.
Incorporation for Local SMEs
Setting up a company in Malaysia is a regulated process overseen by the Companies Commission of Malaysia (SSM). The core requirements include:
- At least one director who is a Malaysian resident
- At least one shareholder (can be the same as the director)
- A registered business address in Malaysia
- Appointment of a company secretary within 30 days of incorporation
- Minimum paid-up capital of RM1
Taking SME-Friendly Services
You can also take incorporation services from firms that can offer several services that will help you during and after registration:
- Company registration
- Annual secretarial services
- Optional services like business address setup and bank account opening
Incorporation for Foreign Companies
Foreign investors can set up a Malaysian Sdn Bhd company remotely in most industries. However, a local resident director is required (many firms offer nominee director services for this purpose).
Key Requirements:
- Minimum one local resident director
- Minimum one shareholder (individual or corporate)
- Malaysian registered office address
- Appointment of a company secretary
- Sector-specific licences, if applicable
Typical Foreign Setup Packages:
Similar to starting a local company, you can also decide to work with a corporate service provider for a foreign company setup. Packages may include nominee director services, secretarial support, and compliance assistance
Looking to Start a Company in Malaysia?
Amaze Advisory is a licensed Malaysian corporate services firm located in Bangsar South, Kuala Lumpur. We provide full-service business support, from incorporation to post-setup operations, including:
- Company secretarial services
- Accounting & bookkeeping
- Corporate tax compliance
- Payroll processing
- Employer of Record (EOR)
- SST registration & advisory
- Annual return filing and more
With a team of seasoned professionals, we serve as your long-term business partner—not just your company secretary.
👉 Click here to get a free quote or start your incorporation
  📩 Email us at salesteam@amazeadvisory.com to speak with our team today.
Conclusion
Malaysia offers a pro-business environment that supports both local startups and international investors. From tax incentives to 100% foreign ownership in most sectors, it’s a compelling choice for companies looking to establish a Southeast Asian presence. Understanding the incorporation process—and working with experienced professionals—can make business setup smooth, compliant, and efficient.
