Setting up a Limited Liability Company (LLC) in Malaysia is a strategic choice for both local and foreign entrepreneurs looking to establish a business in Southeast Asia. Malaysia offers a business-friendly environment with tax incentives, strong legal protections, and a well-developed financial system.

This guide covers everything you need to know about LLC company registration in Malaysia, including the steps involved, required documents, tax obligations, and key considerations.

Can You Register an LLC in Malaysia?

Yes, Malaysia allows both residents and foreigners to register a Limited Liability Company (LLC), also known as a Sendirian Berhad (Sdn Bhd). This is the most common business structure due to its flexibility, legal protection, and ability to conduct a wide range of business activities.

Key Requirements:

  • At least one director and one shareholder (can be the same person).
  • A local company secretary registered with the Malaysian Companies Commission (SSM).
  • A registered office address in Malaysia.
  • Minimum paid-up capital of RM1 (though higher capital may be required for certain industries).

Foreigners can own 100% of the shares in certain business sectors, but some industries have local ownership requirements. It is essential to check sector-specific regulations before proceeding.

Advantages of Forming an LLC in Malaysia

Setting up an LLC in Malaysia comes with numerous benefits:

  • Limited Liability Protection – Shareholders are only liable for the amount invested in the company.
  • Tax Benefits – Malaysia offers corporate tax rates as low as 15% for SMEs with revenue below RM150 million.
  • 100% Foreign Ownership – Many industries allow complete foreign ownership without a local partner.
  • Ease of Expansion – Malaysia is part of ASEAN, allowing businesses to tap into a regional market of over 600 million people.
  • Access to Government Grants – Businesses in certain sectors (e.g., technology, manufacturing) may qualify for government incentives.

Steps to Register an LLC in Malaysia

Step 1: Name Reservation

Before registering your business, you must check the availability of your company name with the Companies Commission of Malaysia (SSM) via the MyCoID portal. The name must be:

  • Unique and not similar to existing businesses.
  • Free of restricted or offensive words.
  • In compliance with SSM naming guidelines.

If the name is approved, it will be reserved for 30 days, with an option to extend for an additional fee.

Step 2: Prepare Incorporation Documents

You will need to gather and submit the following documents:

  • Company Constitution (optional but recommended)
  • Director and shareholder details (passport/NRIC, residential address)
  • Declaration of Compliance (Form 6)
  • Registered office address proof

Step 3: Submit Application to SSM

The incorporation application is submitted via the MyCoID portal, and the standard registration fee is RM1,000. If all documents are in order, approval usually takes 1-3 business days.

Step 4: Obtain Company Incorporation Certificate

Once the application is approved, SSM will issue a Certificate of Incorporation (Form 9). This document serves as legal proof that your LLC is officially registered.

Step 5: Register for Tax and Business Licenses

After incorporation, your LLC must:

  • Register for a Tax Identification Number (TIN) with the Inland Revenue Board of Malaysia (LHDN).
  • Obtain a business license (if required for your industry).
  • Register for GST/SST if annual turnover exceeds RM500,000.

Step 6: Open a Corporate Bank Account

To operate legally, you must open a Malaysian corporate bank account. Required documents typically include:

  • Certificate of Incorporation (Form 9)
  • Company Constitution
  • Board resolution authorizing account opening
  • Identification documents of directors

Step 7: Hire Employees (If Applicable)

If hiring employees, your LLC must register with:

  • Employees Provident Fund (EPF)
  • Social Security Organization (SOCSO)
  • Human Resources Development Fund (HRDF) (for eligible businesses)

Documents Required for LLC Registration in Malaysia

  • Proposed company name approval
  • Identification documents of directors and shareholders
  • Company Constitution (optional but recommended)
  • Declaration of Compliance (Form 6)
  • Registered business address proof
  • Shareholding structure details

Tax Obligations After LLC Registration in Malaysia

Corporate Tax

  • SME tax rate: 15% on the first RM150 million of chargeable income.
  • Standard corporate tax rate: 24% for income exceeding RM150 million.
  • Tax exemption for new startups in specific industries.

Sales and Service Tax (SST)

  • Mandatory registration if revenue exceeds RM500,000 per year.
  • Service tax at 6%, sales tax varies based on the product category.

Annual Filing and Compliance

  • Annual return submission to SSM.
  • Financial statement audit (except for companies with less than RM300,000 revenue).
  • Tax filing with LHDN.

Set Up Your LLC Today with Commenda

Starting an LLC in Malaysia can be complex, but Commenda simplifies the process. Our services include:

  • Name reservation and company registration
  • Assistance with tax registration and compliance
  • Guidance on licenses and permits
  • Corporate bank account setup

Let our experts handle the legal work while you focus on growing your business. Start your LLC today with Commenda!

FAQs

Can I register an LLC in Malaysia as a foreigner?

Yes, foreigners can own 100% of an LLC in most sectors, but some industries require local partnership.

How long does it take to register an LLC in Malaysia?

The registration process usually takes 1-3 business days, provided all documents are in order.

Do I need a physical office in Malaysia?

Yes, you must have a registered business address, but it can be a virtual office in some cases.

What are the costs involved in LLC registration?

  • Company registration fee: RM1,000
  • Company secretary fee: RM600 – RM1,500 per year
  • Business license fees (varies by industry)

Can I register my LLC online?

Yes, the entire registration process can be completed online via MyCoID portal.

What taxes does my LLC need to pay?

Your LLC must pay corporate tax (15%-24%), SST (if applicable), and employment-related contributions.

Can I open a corporate bank account without visiting Malaysia?

Most banks require at least one director to be physically present, but some digital banks may allow remote account setup.

Conclusion

Malaysia provides an attractive environment for Malaysia business incorporation, offering tax incentives, foreign ownership flexibility, and strong legal protections. By following the outlined steps, you can efficiently set up an LLC in Malaysia and take advantage of the country’s dynamic economy.

If you need assistance, Commenda is here to help. Get started with your Malaysia LLC registration today