Registering a company in Malaysia from Singapore is a strategic move for entrepreneurs seeking to tap into the dynamic Southeast Asian market. Malaysia offers a conducive environment for foreign investments, characterized by competitive operating costs and a robust infrastructure. 

Notably, the establishment of a special economic zone in Johor has further enhanced cross-border business opportunities between the two nations.

Foreigners, including Singaporean nationals, can register a company in Malaysia through various business structures. 

In this post, let’s understand the whole process of how to register a company in Malaysia from Singapore. 

Can You Register a Company in Malaysia from Singapore?

Yes, entrepreneurs from Singapore can legally set up a business in Malaysia. The Companies Commission of Malaysia (SSM) facilitates the incorporation process, which can be completed online via the MyCoID portal.

Why Start a Business in Malaysia from Singapore?

Registering a company in Malaysia from Singapore offers numerous strategic advantages, making it an attractive option for entrepreneurs seeking to expand their business horizons. Here are some compelling reasons:

  • Low Corporate Tax Rates: Malaysia offers competitive corporate taxes, with reduced SME rates and industry-specific incentives, encouraging reinvestment and profitable business growth.
  • Modern Corporate Law Framework: The Companies Act 2016 streamlines incorporation, governance, and decision-making, providing flexibility, transparency, and alignment with global business standards.
  • Educated and Cost-Effective Workforce: A skilled, English-speaking workforce combines high literacy with affordable labor costs, enabling efficient operations and workforce development.
  • Strategic Geographic Location: Located in ASEAN’s heart, Malaysia provides easy access to regional markets, major shipping lanes, and strong transport and digital infrastructure.
  • Extensive Free Trade Agreements (FTAs): FTAs reduce tariffs, streamline customs, and enhance market access, supporting trade, foreign investment, and cross-border business growth.

Types of Business Structures in Malaysia for Singaporean Entrepreneurs

Singaporean entrepreneurs have several options when considering company registration in Malaysia. While some structures are accessible to foreigners, others are restricted. Below is a detailed comparison of the available entities:

Entity TypeLiabilityComplianceSuitability
Branch OfficeParent company liableModerate: Must appoint a local agent, submit the parent company’s documents to SSMSuitable for foreign companies wishing to establish a presence in Malaysia without forming a separate entity
Representative OfficeNone (non-revenue generating)Low: Primarily for market research and promotional activities; cannot engage in direct business activitiesBest for foreign companies assessing the Malaysian market; it does not generate income
Private Limited Company (Sdn. Bhd.)Limited to the capital investedHigh: Requires at least one local director, a company secretary, audited accounts, and annual returnsIdeal for foreign investors seeking full ownership in most sectors; the most common choice for foreigners
Limited Liability Partnership (LLP)Limited to capital investedModerate: Requires at least one partner, a registered office, and compliance with the Limited Liability Partnerships Act 2012Offers flexibility and limited liability; suitable for professional services and small businesses

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

Registering a company in Malaysia from Singapore is a structured process that can be efficiently completed online. Below is a detailed, step-by-step guide to help you understand how to register a company in Malaysia from Singapore:

Step 1: Choose Your Business Structure

Begin by choosing the business structure. The most common structure for foreign investors is the Sendirian Berhad (Sdn. Bhd.), a private limited company that offers limited liability and can be 100% foreign-owned in many sectors. 

Step 2: Reserve a Unique Company Name

Conduct a name search via the official Suruhanjaya Syarikat Malaysia (SSM) e-Search portal to ensure your desired company name is available. If approved, the name will be reserved for 30 days. The reservation fee is typically RM 50.

Step 3: Appoint a Local Director

At least one director must be a resident of Malaysia. This individual can be a Malaysian citizen or a foreigner holding a valid visa, such as the Resident Talent Pass. This pass allows skilled expatriates to reside and work in Malaysia for up to 10 years.

Step 4: Prepare Required Documents

Gather the following documents for submission:

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

Step 5: Submit Incorporation Documents

Log in to the official portal and complete the company registration application. This includes providing company details, uploading the prepared documents, and paying the registration fee, which is typically RM 1,000 for an Sdn. Bhd.

Step 6: Obtain the Certificate of Incorporation

Upon approval, the Companies Commission of Malaysia (SSM) will issue the Certificate of Incorporation. This confirms the legal existence of your company. The processing time is usually within 1–3 business days.

Step 7: Register for Taxes

Register your company with the Inland Revenue Board of Malaysia (LHDN) for tax purposes. This includes obtaining a Tax Identification Number (TIN) and registering for Sales and Services Tax (SST) if required.

Step 8: Open a Business Bank Account

To facilitate financial transactions, open a corporate bank account with a Malaysian bank. It’s advisable to consult with the chosen bank for their specific requirements.

Step 9: Apply for Necessary Licenses and Permits

Depending on your business activities, you may need to obtain specific licenses or permits from relevant authorities. For instance, businesses in sectors like food and beverage, education, or healthcare may require additional approvals. Ensure compliance with local regulations to operate legally.

Requirements for Singaporean Entrepreneurs

If you’re finding answers in regards to how to incorporate a company in Malaysia from Singapore, you must fulfill several prerequisites to ensure a smooth incorporation process. These requirements ensure compliance with Malaysian regulations and facilitate legal operations within the country.

  • All directors and shareholders must provide a valid passport. Proof of residential address is required, typically notarized, to confirm identity and residency.
  • Every company must have a registered office in Malaysia. This can be a physical office or a virtual office provided by a licensed service provider.
  • Having a constitution can define company rules and shareholder agreements. It ensures clarity on management, shareholding, and operations.
  • Register the company with the LHDN to obtain a TIN for corporate taxation. This is required for tax filing and for opening a corporate bank account.
  • Certain sectors require additional licenses or permits. Check with the relevant Malaysian authorities before starting operations.
  • If you are expanding a Singapore-registered business into Malaysia, ensure that your company is in good standing with Accounting and Corporate Regulatory Authority (ACRA). 

Cost of Incorporating in Malaysia from Singapore

Incorporating a company in Malaysia from Singapore involves various costs, which can be broadly categorized into initial setup costs, annual fees, and operational expenses. Below is a detailed breakdown of the cost of incorporating a company in Malaysia from Singapore:

  • 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 Singapore

As a Singaporean entrepreneur looking to open a business bank account in Malaysia, it’s essential to understand the available banking options, Know Your Customer (KYC) requirements, potential challenges, and alternative solutions. Here’s a comprehensive guide to assist you:

Local and International Banking Options

Malaysia offers a range of banking institutions catering to business needs:

  • Local Banks: Established Malaysian banks such as Maybank, CIMB, Public Bank, and RHB offer business banking services.
  • International Banks: Global banks like HSBC and Standard Chartered also provide business accounts in Malaysia.

KYC Requirements

To comply with Malaysian Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations, banks require:

  • Proof of Identity: Valid passport for all directors and authorized signatories.
  • Company Documents: Certificate of Incorporation, Company Constitution, and a Board Resolution authorizing the opening of the account.
  • Proof of Address: Utility bills or official documents confirming the business address.
  • Additional Documents: Some banks may request a Letter of Introduction from an existing customer or a Certificate of Incumbency if the company is incorporated outside Malaysia.

Challenges in Opening a Business Bank Account

  • Remote Setup: Most Malaysian banks require directors to be physically present during the account opening process. This can be a significant hurdle for Singaporean entrepreneurs who cannot travel to Malaysia.
  • In-Person Visits: Some banks may insist on in-person meetings, even after initial document submissions, to verify identities and discuss business operations.
  • Bank Policies: Each bank has its own policies regarding foreign business accounts, and some may be more stringent than others.

Alternative Solutions

If opening a traditional business bank account in Malaysia proves challenging, consider the following alternatives:

  • Digital Banks: Some digital banks may offer business accounts that can be managed remotely. However, availability and services may vary.
  • Fintech Platforms: Platforms like Wise and Payoneer provide multi-currency accounts suitable for international transactions. These platforms allow businesses to hold and convert funds in various currencies, making them a viable option for cross-border operations.

Visas and Residency Considerations

It is important to note that incorporating a company in Malaysia does not automatically grant residency. Singaporean entrepreneurs must comply with Malaysian immigration laws if they intend to live, work, or spend extended periods in the country.

  • Incorporation ≠ Residency: Registering a company in Malaysia allows you to operate a business, but does not confer the right to live or work in Malaysia. Directors and shareholders must obtain the appropriate visa if they wish to stay in the country.
  • Investor / Business Visa: The Malaysia My Second Home (MM2H) program offers long-term residency for investors who meet financial and business criteria. Some states may also provide Investor Pass schemes for foreign entrepreneurs who invest in approved sectors or meet minimum capital requirements.
  • Work Visa / Employment Pass: Entrepreneurs who wish to manage their company in Malaysia actively may apply for an Employment Pass (EP) under the Ministry of Human Resources. Requirements typically include a confirmed business plan, local employment, and proof of financial capacity to run the company.

Compliance and Ongoing Responsibilities

After you register a company in Malaysia from Singapore, ongoing compliance with Malaysian corporate and tax regulations is critical to maintain the company’s good standing and avoid penalties.

  • All companies must submit an annual return to the SSM. This includes updated information on directors, shareholders, and company addresses.
  • Companies are required to file corporate tax returns with the LHDN annually. The standard corporate tax rate is 24%, with exemptions or reduced rates possible for SMEs or promoted sectors.
  • Certain licenses, permits, and the registered office address require annual renewal fees. Failure to renew on time may result in fines or suspension of business activities.
  • Companies exceeding specified thresholds must appoint an external auditor to conduct annual audits and submit audited financial statements to SSM. 
  • Every company must maintain a registered office in Malaysia and a licensed company secretary. The registered office must be capable of receiving official communications from authorities.

Challenges When Registering a Company in Malaysia from Singapore

While registering a company in Malaysia from Singapore offers strategic opportunities, entrepreneurs often encounter several challenges that can complicate the incorporation process.

  • Complex Legal Documentation: Malaysian corporate law requires detailed documentation. Foreign entrepreneurs may find these requirements challenging without local expertise.
  • Time Zone & Communication Barriers: Operating from Singapore means dealing with Malaysia’s local offices during their business hours, which can create delays in approvals, document verification, and correspondence with authorities.
  • Banking Restrictions: Opening a business bank account in Malaysia often requires directors to be physically present, posing logistical challenges for Singaporean entrepreneurs.
  • High Compliance Costs: Ongoing costs include company secretary fees, tax filings, audit requirements (if applicable), annual returns, and renewal of licenses and permits. These costs can be significant.

How Commenda Helps with Incorporation in Malaysia from Singapore

Setting up a business across borders can be complex, but Commenda specializes in guiding entrepreneurs from Singapore through every step of incorporating a company in Malaysia.

  • Registered Agent & Local Representation: Commenda provides a licensed local registered agent and company secretary, ensuring compliance with Malaysian corporate law.
  • Documentation & Filing: From preparing incorporation forms to submitting statutory declarations and company constitutions, Commenda handles all the necessary paperwork efficiently.
  • Compliance Management: Commenda assists with annual returns, tax filings, audits (if required), and license renewals, helping your company maintain good standing with SSM and LHDN.

Book a consultation with Commenda today to get started.

Conclusion

Setting up a company in Malaysia from Singapore is both achievable and rewarding for entrepreneurs seeking regional growth. With expert services like Commenda, Singaporean entrepreneurs can streamline the entire process, ensuring a smooth and successful launch in Malaysia.

Take the next step in expanding your business. Book a demo today.

FAQs

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

Yes, it is possible to register a company in Malaysia from Singapore remotely. Most steps can be completed online. However, some banks may require directors to be physically present to open a corporate account.

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

Foreign entrepreneurs can incorporate:

  • Private Limited Company (Sdn. Bhd.)
  • Branch Office
  • Limited Liability Partnership (LLP) 

Structures like sole proprietorships and partnerships are reserved for Malaysian citizens.

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

The cost of incorporating a company in Malaysia from Singapore typically includes:

  • Initial setup: RM 3,150 – RM 7,450
  • Annual fees: RM 2,200 – RM 6,100
  • Operational costs: RM 20,000 – RM 100,000+ depending on salaries, rent, and other expenses.

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

Yes, at least one director must be a resident of Malaysia. This can be a Malaysian citizen or a foreigner holding a valid residency visa, such as the Resident Talent Pass.

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

Yes, but with challenges. Most banks require directors to be physically present for account opening due to KYC regulations. 

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

No. Incorporation does not grant residency or the right to work. Entrepreneurs need the appropriate visa, such as an Employment Pass, Investor Pass, or Malaysia My Second Home (MM2H) program for long-term residency.

7. What are the annual compliance requirements in Malaysia?

  • Submit annual returns to SSM.
  • File corporate tax returns with LHDN.
  • Renew licenses and permits.
  • Conduct audits if required.

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

  • Private Limited Company (Sdn. Bhd.): Most suitable for foreigners; offers limited liability and flexibility.
  • LLP: Good for small businesses or professional services, but less common for large-scale operations.

A corporation (Sdn. Bhd.) is generally recommended for Singaporean entrepreneurs looking for scalability, credibility, and access to financing.