Register a Company in Malaysia from India

Expanding your business internationally can unlock new growth opportunities, and Malaysia is one of Southeast Asia’s most investor-friendly destinations. Indian entrepreneurs can efficiently register a company in Malaysia and tap into the country’s dynamic economy, strategic location, and supportive business ecosystem.

Malaysia offers a straightforward incorporation process, a robust legal framework, and incentives for foreign investors, making it an attractive option for Indian businesses seeking regional expansion.

By understanding how to register a company in Malaysia from India, the process, regulatory requirements, and compliance obligations, Indian investors can incorporate a company smoothly, minimizing risks and maximizing opportunities for growth.

Can You Register a Company in Malaysia from India?

Yes, Indian entrepreneurs can legally register a company in Malaysia from India. Foreign investors, including those from India, are permitted to set up businesses in Malaysia under clear and investor-friendly regulations. 

Why Start a Business in Malaysia from India?

Indian entrepreneurs looking to expand their business to Malaysia can benefit from a variety of advantages that make the country an attractive investment destination. The benefits of incorporating in Malaysia extend beyond simple registration, providing long-term operational and strategic value:

• Strategic Location: Easy access to major Asian markets like China, Singapore, Thailand, and Indonesia. Six international airports and major ports (Port Klang, Tanjung Pelepas) support fast regional and global trade.
• Robust Trade Network: Malaysia has FTAs with countries like Japan, New Zealand, and Australia. As an ASEAN member, it benefits from AFTA and AEC, enabling cost-effective trade and freer movement of goods, services, and labor. 
• Supportive Business Environment: Company registration via the Companies Commission of Malaysia (SSM) is fast and straightforward. Corporate tax rates start at 24%, with reduced rates of 17% for small businesses.
• Investment-Friendly Policies: Investment Guarantee Agreements with over 60 countries, including the US, UK, China, and Germany, protect investors against nationalization or expropriation, increasing confidence for foreign investors.
• Multilingual, Cost-Effective Workforce: English, Tamil, and Mandarin proficiency make communication easy. Lower living and labor costs enable companies to access talent efficiently while keeping overheads manageable.

Types of Business Structures in Malaysia for Indian Entrepreneurs

When you’re trying to understand how to register a company in Malaysia from India, selecting the right entity is critical, as it determines liability, compliance requirements, and operational flexibility.

Entity Type	Liability	Compliance Requirements	Suitability for Indian Entrepreneurs
Private Limited Company (Sdn Bhd)	Limited to shareholding	Mandatory annual returns, corporate tax filings, audits (if thresholds exceeded), and a local company secretary	Best for startups, SMEs, or foreign investors seeking credibility and liability protection
Limited Liability Partnership (LLP)	Limited to the partnership agreement	Annual declaration, simplified reporting, no mandatory audit for small LLPs	Ideal for professional services, small businesses, or partnerships seeking flexibility
Exempt Private Company (EPC)	Limited to shareholding	Exempt from annual audit if paid-up capital ≤ RM 300,000 and shareholders ≤ 20	Suitable for small-scale ventures or closely held companies with fewer compliance obligations
Sole Proprietorship / Partnership	Unlimited liability	Annual business registration renewal	Not allowed for foreign entrepreneurs; Indian investors cannot directly register this structure
Public Company (Berhad, Bhd)	Limited to shareholding	Extensive compliance, mandatory audit, and higher capital requirements	Typically not suitable for small foreign-owned ventures; used for large-scale operations

Step-by-Step Process to Register a Company in Malaysia from India

Indian entrepreneurs looking to incorporate a company in Malaysia from India can follow these clear, step-by-step guidelines on how to incorporate a company in Malaysia from India:

Step 1: Choose Your Business Structure

Decide on the appropriate entity, Sdn Bhd, LLP, or EPC, based on liability, compliance, and business goals.

Step 2: Reserve a Unique Company Name

Submit your desired company name to the SSM for approval. Ensure the name complies with naming conventions and is not already in use.

Step 3: Appoint a Registered Agent / Local Representative

All foreign-owned companies must appoint a licensed Malaysian company secretary or registered agent to handle statutory filings and official correspondence.

Step 4: Prepare Required Documents

Gather the necessary documents for incorporation:

• Copies of identification documents (MyKad for Malaysians, passport for foreigners)
• Proof of residential address
• Details of proposed directors and shareholders

Step 5: File Incorporation Documents

Submit all incorporation documents to SSM, including Form 9 (Certificate of Incorporation), Form 24 (Register of Directors), and Form 49 (Shareholders’ particulars).

Step 6: Obtain Tax Identification (TIN / EIN)

Register your company with the Inland Revenue Board of Malaysia (LHDN) to obtain a Tax Identification Number (TIN) and comply with corporate tax obligations.

Step 7: Apply for Licenses and Permits

Depending on your business sector, finance, healthcare, food, or education, obtain the necessary licenses or approvals from the relevant Malaysian authorities.

Step 8: Open a Business Bank Account

Open a corporate bank account in Malaysia. Some banks require in-person verification; alternatives include digital banks and fintech platforms.

By following these steps, Indian entrepreneurs can register a company in Malaysia from India efficiently, ensuring full compliance and readiness to operate in a growing Southeast Asian market.

Requirements for Indian Entrepreneurs

Before you register a company in Malaysia from India, it’s important to meet all legal and regulatory prerequisites. Ensuring that these requirements are in place will streamline the incorporation process and reduce potential delays:

• Directors and shareholders must provide a valid passport and proof of residential address, notarized or certified as per Malaysian regulations.
• Foreign-owned companies must appoint a licensed company secretary and maintain a registered office within Malaysia to receive official communications.
• The documents must define the company’s internal regulations, shareholder rights, and management structure, and must be submitted to SSM during incorporation.
• Register with the LHDN to obtain a TIN for corporate tax purposes.
• Indian entrepreneurs expanding an existing company must ensure compliance with domestic regulations, including tax filings, approvals from the Reserve Bank of India (if applicable), and corporate governance requirements.

Meeting these prerequisites allows Indian investors to incorporate a company in Malaysia from India smoothly while staying fully compliant with both Malaysian and Indian regulations.

Cost of Incorporation in Malaysia from India

Understanding the financial requirements upfront helps in budgeting effectively and avoiding unexpected expenses.

• Application for incorporation:
  • Company limited by shares: RM 1,000
  • Company limited by guarantee: RM 3,000
  • Unlimited company: RM 1,000

• Reservation of the company’s name: RM 50 for every thirty days or part thereof, with a maximum of 180 days
• Changing the company’s name: RM 250

Opening a Business Bank Account in Malaysia from India

For Indian entrepreneurs planning to register a company in Malaysia from India, setting up a business bank account is essential for managing operations, payments, and compliance.

Local and International Banking Options

• Local Banks: Maybank, CIMB, Public Bank, and RHB provide corporate accounts suitable for foreign-owned companies. They offer multi-currency accounts and standard corporate banking services.
• International Banks: HSBC, Standard Chartered, and Citibank are ideal for Indian businesses seeking multi-currency facilities and international transaction support.

Know Your Customer (KYC) and Documentation Requirements

Malaysian banks follow strict KYC regulations. Common requirements include:

• A letter of introduction and recommendation from an existing customer of your chosen bank
• Company rubber stamp
• Photographic ID for all directors and signatories on the account
• Company details, such as proof of proper registration and address
• Approval to open the account from all directors, confirmed in a company resolution

Challenges for Indian Entrepreneurs

Opening a Malaysian business bank account from India can be challenging due to:

• Some banks require in-person verification of directors or signatories
• Time zone differences are affecting communication with bank officials
• Limited options for fully remote account opening for foreign-owned companies

Alternatives: Digital Banks and Fintech Solutions

To overcome physical presence challenges, Indian entrepreneurs can consider:

• Digital banks in Malaysia: Some local digital banks allow corporate account setups with fewer in-person requirements.
• Fintech solutions: Platforms like Wise (formerly TransferWise) and Payoneer enable Indian companies to receive Malaysian Ringgit, pay local suppliers, and manage cross-border transactions efficiently.

By carefully selecting the right banking solution, Indian investors can open a Malaysian business bank account from India and streamline their international operations while remaining fully compliant.

Visas and Residency Considerations

It is important to understand that incorporating a company in Malaysia from India does not automatically grant residency or work rights. Indian entrepreneurs must comply with Malaysian immigration laws if they intend to live or manage operations locally.

• Employment Pass (EP): Required for foreign nationals who plan to work or manage their Malaysian company. Approval usually depends on the company’s paid-up capital (commonly RM 500,000+) and the applicant holding a director or key managerial position.
• Investor / Business Visa: Certain states may provide investor visas for foreign nationals contributing significant capital or creating local employment opportunities. Eligibility and investment thresholds vary by sector.
• Malaysia My Second Home (MM2H) Program: Though primarily for retirees, the MM2H visa allows long-term stay and may be suitable for entrepreneurs seeking extended residency while maintaining business ownership.

Compliance and Ongoing Responsibilities

After you register a company in Malaysia from India, adhering to ongoing compliance requirements is crucial to maintain legal standing and operational credibility. Even if you manage your business remotely from India, Malaysian law mandates certain obligations.

• Companies must submit annual returns to the SSM, including details of directors, shareholders, and company activities.
• File annual tax returns with the LHDN. The standard corporate tax rate is 24%, with exemptions for small businesses under certain thresholds.
• Licenses, permits, and company registration require annual renewal. Late payments can result in fines or restrictions on business operations.
• A local registered office and licensed company secretary are mandatory to receive official notices and ensure statutory compliance.

Challenges When Registering a Company in Malaysia from India

While it is fully possible to register a company in Malaysia from India, Indian entrepreneurs may encounter several challenges during incorporation and ongoing operations:

• Complex Legal Documentation: Malaysian incorporation requires accurate preparation of documents such as the Company Constitution, Form 9, directors’ consents, and notarized identification. Errors or omissions can delay approval.
• Time Zone & Communication Barriers: Coordinating with Malaysian authorities, company secretaries, and banks from India can be challenging due to time differences and limited office hours, potentially slowing down the registration process.
• Banking Restrictions: Some Malaysian banks require in-person visits for account opening or verification, posing difficulties for remote Indian investors. KYC and compliance requirements can be stringent.
• High Compliance Costs: While the cost of incorporating a company in Malaysia from India may initially seem manageable, ongoing obligations like annual returns, audits, and company secretary fees can accumulate, increasing operational costs.

How Commenda Helps with Incorporation in Malaysia from India

Expanding your business internationally can be complex, but Commenda specializes in helping Indian entrepreneurs efficiently register a company in Malaysia from India. With extensive experience in cross-border incorporation, Commenda simplifies the process and ensures full compliance with Malaysian regulations.

• Registered Agent & Local Representation: Commenda acts as your licensed Malaysian company secretary and registered agent, handling statutory filings and official correspondence on your behalf.
• Document Preparation & Filing: From drafting the Company Constitution to submitting incorporation documents to SSM, Commenda ensures accuracy, compliance, and timely approval.
• Compliance & Post-Incorporation Support: Annual returns, corporate tax filings, audit coordination, and regulatory compliance are managed efficiently, helping your company maintain good standing.
• Banking Assistance: Commenda guides Indian entrepreneurs in opening Malaysian business bank accounts, liaising with local and international banks, and exploring fintech alternatives for remote operations.
• End-to-End Cross-Border Guidance: From initial company registration to operational setup, licenses, and permits, Commenda provides a seamless experience, allowing Indian business owners to focus on growth.

Simplify your Malaysian incorporation journey and avoid common pitfalls. Book a consultation with Commenda today to start your company registration process and expand your business from India to Malaysia with confidence.

Conclusion

Expanding your business internationally is a significant step, but setting up a company in Malaysia from India is entirely achievable and rewarding with proper planning and expert guidance. 

Partnering with experienced professionals ensures you avoid common pitfalls, reduce costs, and meet all legal requirements efficiently. With the right support, your business can thrive in one of Southeast Asia’s most strategic locations.

Book a consultation with Commenda today and let experts guide you through the process of registering your company in Malaysia from India with confidence.

FAQs

1. Can I register a company in Malaysia from India without visiting?

Yes. Indian entrepreneurs can register a company in Malaysia from India remotely. Most steps can be completed online. Some banks may require in-person verification for account opening.

2. Which business structures are available to Indian citizens in Malaysia?

Common structures include:

• Private Limited Company (Sdn Bhd)
• Limited Liability Partnership (LLP)
• Exempt Private Company (EPC)

Sole proprietorships or private partnerships are generally not available to foreign entrepreneurs.

3. How much does it cost to incorporate in Malaysia from India?

Initial incorporation costs typically range from RM 5,000 – RM 15,000, including filing fees, registered agent fees, and legal expenses. Annual compliance and operational costs can add RM 4,500 – RM 17,000.

4. Do I need a local partner or director in Malaysia?

A local company secretary is mandatory. U.S. entrepreneurs can remain majority shareholders and directors in most sectors, but certain regulated industries may require a local partner.

5. Can I open a Malaysian business bank account from India?

Yes, though some banks require in-person visits for verification. Alternatives include digital banking platforms and fintech solutions such as Wise and Payoneer.

6. Does registering a company in Malaysia give me a work visa?

No. Incorporation does not confer residency. Indian entrepreneurs must apply for an Employment Pass, investor visa, or other permits to live and work in Malaysia.

7. What are the annual compliance requirements in Malaysia?

• Filing annual returns with SSM
• Corporate tax filings with LHDN
• Maintaining a registered office and a company secretary
• Audits for companies exceeding thresholds 

Non-compliance can result in fines or a company strike-off.

8. LLC vs Corporation in Malaysia: Which is better for Indian entrepreneurs?

• Sdn Bhd (Corporation equivalent): Offers limited liability, credibility, and access to investors; most suitable for Indian investors.
• LLP: Simpler structure and reporting, suitable for smaller ventures or partnerships.

Choice depends on liability preference, scale, and funding needs.