When you set out to register a company in Malaysia from the USA, you’re tapping into one of Southeast Asia’s most open and strategic economies. Malaysia positions itself as a favoured destination for foreign investment.

Whether your objective is to establish a regional hub, a subsidiary of your U.S.-based business, or a standalone Malaysian company, the process of how to register a company in Malaysia from the USA involves several clear steps.

In the following sections, you’ll be guided through key aspects of the process, from eligibility and preparation to registration steps, and cost breakdowns, tailored specifically for entrepreneurs and companies based in the USA looking to expand into Malaysia.

Can You Register a Company in Malaysia from the USA?

Yes, entrepreneurs can legally register a company in Malaysia from the USA and operate within the country’s thriving business environment. Malaysia allows foreign investors to establish various types of entities, depending on the nature of their business and investment goals. This can be done via the online platform of the Companies Commission of Malaysia (SSM). 

Why Start a Business in Malaysia from the USA?

Starting a business in Malaysia from the USA offers numerous strategic advantages for entrepreneurs and established companies looking to expand regionally. The country’s pro-business environment and supportive policies make it an attractive destination to incorporate a company in Malaysia from the USA. Key benefits include:

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  • Strategic ASEAN Access: Malaysia provides excellent connectivity to Southeast Asian markets at lower costs compared to more developed neighbors.
  • High Growth Potential: GDP is projected to grow to US$780 billion by 2032, offering early-entry opportunities.
  • Resource-Rich Economy: Abundant natural resources like palm oil, rubber, and timber support diverse business ventures.
  • Skilled Workforce & Technology: A combination of talent and technological advancements creates a conducive business environment.
  • Government Support for Investors: Initiatives from agencies, along with grants and funding programs, make starting a business easier and more attractive.

Types of Business Structures in Malaysia for USA Entrepreneurs

Malaysia offers several corporate options for foreign entrepreneurs, each with its own legal requirements, liability protection, and compliance obligations. Understanding these structures ensures that U.S. investors can incorporate a company in Malaysia from the USA efficiently.

Entity TypeLiabilityCompliance RequirementsSuitability
Private Limited Company (Sdn Bhd)Limited to share capitalMust appoint at least 1 director (resident or foreign with exemptions), file annual returns, and maintain proper accountingIdeal for most U.S. investors seeking limited liability and credibility
Limited Liability Partnership (LLP)Limited to agreed capital contributionsAnnual declaration to SSM, simpler reporting than Sdn BhdSuitable for small businesses, partnerships, or professional services
Exempt Private Company (EPC / Sdn Bhd with <20 shareholders)Limited to share capitalLess stringent reporting and audit requirementsGood for small-scale ventures and startups
Sole Proprietorship / PartnershipUnlimited liabilityMust register with SSM, simpler complianceGenerally not recommended for foreign entrepreneurs, as foreigners may face ownership restrictions

Step-by-Step Process to Register a Company in Malaysia from the USA

Here’s a step-by-step process to incorporate a company in Malaysia from the USA:

1. Choose Your Business Structure

Decide whether you want to establish a Private Limited Company (Sdn Bhd), Limited Liability Partnership (LLP), or an Exempt Private Company (EPC). Your choice will influence compliance, liability, and operational flexibility.

2. Reserve a Unique Company Name

Submit your preferred company name to the SSM for approval. Ensure it is not identical or similar to existing businesses. This is a mandatory step before filing incorporation documents.

3. Appoint a Registered Agent / Local Representative

All companies in Malaysia must appoint a company secretary who is a resident or licensed in Malaysia. This ensures your company complies with statutory filings and correspondence requirements.

4. Prepare Required Documents

Documents typically include:

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

5. File Incorporation Documents

Submit all incorporation documents to SSM. Once approved, your company will receive a Certificate of Incorporation, confirming legal registration.

6. Obtain EIN / Tax ID

Apply for a Malaysian Tax Identification Number (TIN / EIN equivalent) with the Inland Revenue Board of Malaysia (LHDN) to comply with corporate tax obligations.

7. Apply for Licenses and Permits

Depending on your business activity, you may need additional licenses from local authorities or ministries, such as MIDA, the Ministry of Domestic Trade, or municipal councils.

8. Open a Business Bank Account

After incorporation, open a corporate bank account in Malaysia. Major banks provide services to foreign companies, allowing seamless financial operations in the USA.

Following these steps ensures that U.S.-based entrepreneurs can efficiently incorporate a company in Malaysia from the USA while remaining fully compliant with local laws.

Requirements for USA Entrepreneurs

To successfully learn how to incorporate a company in Malaysia from the USA, entrepreneurs must fulfill several prerequisites. Meeting these requirements ensures compliance with Malaysian law and facilitates smooth incorporation. 

Key requirements include:

  • All directors and members must provide valid passports and notarized proof of address, which are essential for identity verification and legal documentation during company registration.
  • A Malaysian-resident company secretary or office is mandatory for correspondence and statutory filings.
  • The company constitution or memorandum & articles of association must define the rules, objectives, and structure of your company.
  • U.S. entrepreneurs must obtain a Malaysian TIN from the LHDN to comply with corporate tax obligations.
  • Certain sectors, such as finance, food, healthcare, or education, may require additional approvals from Malaysian authorities or ministries.

Cost of Incorporating in Malaysia from the USA

Below is a detailed breakdown of the cost of incorporating a company in Malaysia from Australia:

  • 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 the USA

When planning to open a Malaysian business bank account from the USA, entrepreneurs have several options. 

1. Local and International Banking Options

Malaysia hosts a wide range of banking institutions suitable for foreign-owned companies:

  • Local Banks: Maybank, CIMB, Public Bank, and RHB offer corporate accounts for foreign companies, often requiring Malaysian residency or a company secretary.
  • International Banks: HSBC, Standard Chartered, and Citibank provide multi-currency accounts, which are convenient for U.S.-based businesses expanding into Malaysia.

2. Know Your Customer (KYC) and Documentation Requirements

Banks in Malaysia follow strict KYC regulations. Typical 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

These documents ensure compliance with Anti-Money Laundering (AML) and tax regulations.

Challenges for U.S. Entrepreneurs

While many steps can be done remotely, opening a Malaysian business bank account from the USA can present challenges:

  • Some banks require in-person verification of directors or company signatories.
  • Remote account opening is limited to certain banks or depends on prior business relationships.
  • Currency conversion and wire transfers may incur additional fees.

Alternatives: Digital Banks and Fintech Solutions

To overcome physical presence requirements, U.S. entrepreneurs can use:

  • Digital banks in Malaysia: Banks like BigPay or AirAsia’s BigPay Business (depending on regulations) offer corporate accounts for SMEs.
  • International fintech providers: Wise (formerly TransferWise) and Payoneer enable U.S. companies to receive Malaysian Ringgit and pay local suppliers without a traditional bank account.

These alternatives simplify cross-border transactions while maintaining compliance.

By planning ahead and selecting the right banking solution, U.S. entrepreneurs can efficiently open a Malaysian business bank account, supporting both local operations and international expansion.

Visas and Residency Considerations

It is important to understand that incorporating a company in Malaysia from the USA does not automatically grant residency or work rights. U.S. entrepreneurs must comply with Malaysian immigration laws if they plan to live or work in the country.

  • Malaysia My Second Home (MM2H) Program: While primarily aimed at retirees and long-term residents, this visa allows business owners to stay in Malaysia for extended periods, subject to financial and health criteria.
  • Employment Pass (EP): U.S. entrepreneurs who intend to manage operations locally may apply for an Employment Pass. Approval typically requires a minimum paid-up capital for the company (often RM 500,000+) and a valid position as a director or key manager.
  • Investor / Business Visa: Certain states in Malaysia may offer investor visas for foreign nationals contributing significant capital or creating employment opportunities. Eligibility criteria and investment thresholds vary.

Compliance and Ongoing Responsibilities

After you register a company in Malaysia from the USA, ongoing compliance is critical to maintain legal status and operational credibility. U.S. entrepreneurs must meet statutory requirements even if they manage the company remotely.

  • All companies must submit annual returns to the SSM, detailing shareholding, directors, and company activities. Filing deadlines depend on the company’s financial year.
  • Companies are required to file annual tax returns with the LHDN. Corporate tax rates typically range around 24%, with exemptions or reduced rates for small businesses.
  • Certain licenses, permits, and the company registration itself require yearly renewal. Failure to pay renewal fees can result in late penalties or restrictions on company operations.
  • Malaysian law mandates a local registered office and a licensed company secretary. They act as the official point of contact for legal and tax matters.

Challenges When Registering a Company in Malaysia from the USA

While it is entirely possible to register a company in Malaysia from the USA, entrepreneurs often face certain challenges during the incorporation process and ongoing operations:

  • Complex Legal Documentation: Malaysian incorporation requires precise preparation of documents. Mistakes or incomplete filings can delay approval.
  • Time Zone and Communication Barriers: Coordinating with Malaysian authorities, company secretaries, and banks from the U.S. can be challenging due to time differences and limited office hours.
  • Banking Restrictions: Some Malaysian banks require in-person visits for account opening or verification, creating obstacles for remote incorporation.
  • High Compliance Costs: While the cost of incorporating a company in Malaysia from the USA may start relatively low, ongoing obligations such as annual returns, audits, and company secretary fees can accumulate, adding operational complexity and expense.

How Commenda Helps with Incorporation in Malaysia from the USA

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

  • Registered Agent & Local Representation: Acts as your licensed Malaysian company secretary and registered agent, ensuring that all statutory requirements are met and official correspondence is handled professionally.
  • Document Preparation & Filing: From drafting the Company Constitution to submitting incorporation documents to SSM, Commenda ensures accuracy, compliance, and timely submission, reducing delays and errors.
  • Compliance & Post-Incorporation Support: Ongoing obligations such as annual returns, corporate tax filings, and audit coordination are managed efficiently, helping your company maintain good standing with Malaysian authorities.
  • Banking Assistance: Commenda guides U.S. entrepreneurs in opening Malaysian business bank accounts, liaising with local and international banks, and exploring fintech alternatives for remote operations.

Simplify your Malaysian incorporation journey and avoid common pitfalls. Book a consultation with Commenda today to start your company registration process.

Conclusion

Expanding your business internationally is a significant step, but setting up a company in Malaysia from the USA is both achievable and rewarding with careful planning and expert guidance. 

Partnering with experienced professionals ensures that you avoid common pitfalls, reduce costs, and meet all legal requirements seamlessly. With the right support, your business can thrive in one of Southeast Asia’s most investor-friendly environments.

Don’t deal with cross-border incorporation alone. Book a consultation with Commenda today and let experts guide you through the process of registering your company in Malaysia from the USA with confidence.

FAQs

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

Yes, U.S. entrepreneurs can register a company in Malaysia from the USA remotely. Most steps can be completed online.

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

Common structures include:

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

Certain sole proprietorships and professional firms may require a local partner.

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

Initial incorporation fees range from RM 5,000 – RM 15,000 depending on company size, professional services, and paid-up capital. 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, but U.S. entrepreneurs can remain majority shareholders and directors in most sectors. Certain restricted industries may require a local partner.

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

Yes, but some banks require in-person verification. Alternatives include digital banks and fintech solutions like Wise or Payoneer for managing Ringgit transactions remotely.

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

No. Incorporation alone does not confer residency or work rights. U.S. entrepreneurs need an Employment Pass, investor visa, or other relevant 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 (turnover > RM 5 million or paid-up capital > RM 2.5 million)

Non-compliance can lead to fines or a company strike-off.

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

  • Sdn Bhd (Corporation equivalent) – offers limited liability, credibility, and access to investors; most suitable for U.S. investors.
  • LLP – simpler structure and reporting, suitable for small ventures or partnerships.

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