Foreign founders search “LLC Malaysia” and hit a wall of outdated, US-framed advice. The fees, forms, and tax rates in most guides are wrong. Malaysia does not even have a Limited Liability Company (LLC).
The verdict: you register a Sendirian Berhad (Sdn Bhd), Malaysia’s private company limited by shares, through the Companies Commission of Malaysia’s MyCoID online incorporation portal. The Companies Commission of Malaysia is called SSM (Suruhanjaya Syarikat Malaysia). The incorporation fee is RM1,000, and clean applications are approved in 1–3 business days.
| Quick answer | Detail | Source |
|---|---|---|
| Entity to register | Sdn Bhd (private company limited by shares) | SSM, Companies Act 2016 |
| Where you file | MyCoID online portal | SSM |
| Incorporation fee | RM1,000 (company limited by shares) | SSM Table of Fees |
| Name reservation | RM50 per name, held 30 days | SSM |
| Approval time | 1–3 business days | SSM |
| Minimum director | 1, ordinarily resident in Malaysia | SSM |
| Minimum paid-up capital | RM1 | Companies Act 2016 |
What Is an LLC in Malaysia? (It’s Called an Sdn Bhd)
Malaysia has no LLC. The equivalent is the Sendirian Berhad (Sdn Bhd), a private company limited by shares governed by the Companies Act 2016. “LLC” is the US search term; “Sdn Bhd” is the Malaysian entity nearly every founder actually wants. It gives shareholders limited liability and works like a corporation.
Malaysia’s Limited Liability Partnership (LLP) is closer to a US LLC in pass-through spirit. It is a separate body corporate under Section 3 of the Limited Liability Partnerships Act 2012, per SSM. An LLP costs RM500 to register and needs two partners, per SSM. Most founders still choose the Sdn Bhd because investors trust the corporate form.
Can a Foreigner Open a Company in Malaysia With 100% Ownership?
Yes. 100% foreign ownership is permitted in most sectors of a Malaysian Sdn Bhd. Restricted or conditional sectors include banking and finance, oil and gas, telecommunications, education, agriculture, and retail or distributive trade. Retail and distributive trade needs a Wholesale, Retail, Trade (WRT) license from the Ministry of Domestic Trade (KPDN) after incorporation.
Verify sector eligibility before you incorporate. Check with the relevant regulator or the Malaysian Investment Development Authority (MIDA). WRT license conditions, including paid-up capital requirements, apply after the company exists. See the licenses section below for the WRT application process.
What Are the Requirements to Register an Sdn Bhd in Malaysia?
An Sdn Bhd needs at least one Malaysia-resident director, one shareholder, a company secretary, a registered office, and RM1 paid-up capital. The resident-director rule is the first blocker for foreign founders: at least one director must ordinarily reside in Malaysia, per SSM. Many founders solve this with a nominee resident director who holds no ownership and no bank access.
| Requirement | Rule | Source |
|---|---|---|
| Directors | Minimum 1, age 18+, ordinarily resident in Malaysia | SSM incorporation guidelines |
| Shareholders | Minimum 1, individual or corporate, can be the director | SSM |
| Company secretary | Appointed within 30 days of incorporation | SSM |
| Registered office | A Malaysian address for service of documents | SSM |
| Paid-up capital | RM1 minimum | Companies Act 2016 |
The RM1 minimum is real but low. Foreign-owned companies seeking Employment Passes typically need RM500,000 paid-up capital for trading or services, and RM1,000,000 in some regulated sectors. This is an immigration and Expatriate Services Division (ESD) condition, not a Companies Act rule.
How Do You Register a Company in Malaysia Step by Step?
The whole process runs online through SSM’s MyCoID portal. You reserve a name, file the Section 14 superform, pay RM1,000, and receive a Notice of Registration. Applications submitted before noon are approved by 5:00pm the same business day when documents are clean, per SSM’s MyCoID user guidance.
| Step | Action | Fee | Timeline |
|---|---|---|---|
| 1 | Name search and reservation via MyCoID | RM50 per name | Reserved 30 days, extendable to 180 days (SSM) |
| 2 | Complete the Section 14 superform with director and shareholder details and the promoter declaration | Included | Same session |
| 3 | Pay the incorporation fee for a company limited by shares | RM1,000 | On submission |
| 4 | Receive the Notice of Registration | Included | 1–3 business days (SSM) |
The Section 14 superform replaces the old Form 6 declaration. Name reservation costs RM50 for every 30-day block up to a maximum of 180 days, per the SSM Table of Fees/Table-of-Fees.aspx).
What Documents Are Required for LLC Registration in Malaysia?
You need the reserved company name, identity and address details for every director and shareholder, the shareholding structure, a registered office address, and the promoter declaration inside the MyCoID superform. There is no separate paper form to file. The digital superform captures everything SSM needs to incorporate the Sdn Bhd.
- Approved or reserved company name
- Passport or National Registration Identity Card (NRIC) and residential address for each director and shareholder
- Shareholding structure
- Registered office address in Malaysia
- Declaration by the promoter or director within the superform
Note on legacy terms: Form 6 (Declaration of Compliance) is Companies Act 1965 nomenclature and is obsolete. The Section 14 digital superform now handles that declaration.
Do You Need a Company Constitution in Malaysia?
No. A constitution is optional under the Companies Act 2016. Without one, the Act’s default rules govern the company. Adopting a constitution makes sense when you have multiple shareholders, custom share classes, investor requirements, or a sector regulator that demands one. The constitution replaces the old Memorandum and Articles of Association.
You can adopt a constitution at incorporation or later by special resolution. If adopted after incorporation, you must lodge it with SSM within 30 days of adoption, per SSM.
How Do You Appoint a Company Secretary in Malaysia?
Every Sdn Bhd must appoint a qualified company secretary within 30 days of incorporation, per SSM. The secretary must be a Malaysian resident and either a member of a prescribed professional body, such as the Malaysian Institute of Chartered Secretaries and Administrators (MAICSA), or licensed by SSM with a valid practising certificate.
Most founders engage a corporate secretarial services firm. That firm usually provides the registered office address too. Typical annual secretary fees run RM600–RM1,500, based on current market rates.
Can You Use a Virtual Office as Your Registered Office in Malaysia?
Yes. A virtual or secretarial office address satisfies the registered office requirement for most businesses. The registered office must be a Malaysian address where legal documents can be served, and it is commonly the company secretary’s office. You must notify SSM of any change to the registered office within 14 days, per SSM.
The limits matter. Licensed or regulated sectors, such as WRT-licensed retail and premises-based licenses, require physical commercial premises for licensing even though incorporation itself accepts a virtual address.
What Replaced the Certificate of Incorporation (Form 9) in Malaysia?
The Notice of Registration replaced Form 9. Under the Companies Act 2016, in force since 31 January 2017, SSM issues a Notice of Registration under Section 15 as the default proof of incorporation. A formal Certificate of Incorporation is issued only on request under Section 17 for a prescribed fee, per SSM. “Form 9” is the pre-2017 term people still search.
If you need the physical Certificate of Incorporation for a bank or a tender, request it from SSM and pay the fee. Otherwise the Notice of Registration is your legal proof.
How Long Does It Take to Register a Company in Malaysia?
Name approval is typically same-day to a few days. Incorporation approval via MyCoID typically takes 1–3 business days once documents are in order, per SSM. Submit before noon and clean applications are approved by 5:00pm the same day. End-to-end, through bank account and licenses, foreign founders should plan for 2–6 weeks.
The bank account is the usual bottleneck, not the SSM filing. Enhanced due diligence on foreign-owned companies stretches that step out.
How Much Does It Cost to Set Up an Sdn Bhd in Malaysia?
Mandatory SSM fees total roughly RM1,050: RM50 to reserve the name and RM1,000 to incorporate. Recurring professional costs sit on top. A realistic first-year budget adds the company secretary retainer, a registered office, and any industry license fees.
| Cost item | Amount | Source |
|---|---|---|
| Name reservation | RM50 per name | SSM Table of Fees |
| SSM incorporation fee | RM1,000 (limited by shares) | SSM Table of Fees |
| Company secretary | RM600–RM1,500 per year | Market range |
| Registered or virtual office | Often bundled with secretary | Market range |
| Certificate of Incorporation (Section 17) | On request, prescribed fee | SSM |
| Business license fees | Varies by industry and local council | KPDN / local council |
You can confirm a name is free before you pay anything using Commenda’s company name checker.
How Do You Open a Corporate Bank Account in Malaysia?
After incorporation, open an account with a Malaysian bank. Typical documents are the Notice of Registration, a certified company profile from SSM, the constitution if adopted, a board resolution authorizing the account, and directors’ identification. Prepare these before you approach the bank to avoid rework.
Most banks require at least one director to appear in person for foreign-owned companies. Some digital banks offer remote onboarding, so verify current offerings before assuming an in-person trip is mandatory.
How Do You Register for a Tax Identification Number (TIN) With LHDN?
Every company must register for a Tax Identification Number (TIN) with the Inland Revenue Board of Malaysia (LHDN). Companies are generally assigned a TIN automatically on incorporation through SSM data sharing. Founders should confirm and activate the tax file through LHDN’s MyTax or e-Daftar portal before filing corporate tax.
The TIN is separate from Sales and Service Tax (SST) registration. You need the TIN regardless of SST, and it precedes your first corporate tax return.
Does Malaysia Have GST? What About SST Registration?
No. Malaysia abolished the Goods and Services Tax (GST) on 1 September 2018 and replaced it with the Sales and Service Tax (SST), administered by the Royal Malaysian Customs Department (RMCD). The GST rate was first cut to 0% on 1 June 2018, then the tax was repealed, per the GST (Repeal) Act 2018%20Act%202018.pdf). If you searched “GST registration Malaysia,” you want SST.
| Tax | Threshold | Rate | Effective | Source |
|---|---|---|---|---|
| GST | Abolished | 0%, then repealed | 1 Sep 2018 | RMCD |
| Service tax (most services) | RM500,000 turnover | 8% | 1 Mar 2024 | RMCD |
| Service tax (F&B, telecoms, parking, logistics) | RM500,000 (RM1.5M for F&B) | 6% | Retained | RMCD |
| Service tax (leasing, rental, financial) | RM1,000,000 turnover | 8% | 1 Jul 2025 | Ministry of Finance |
| Sales tax (non-essential goods) | RM500,000 | 5% or 10% | 1 Jul 2025 | Ministry of Finance |
The service tax rate rose from 6% to 8% for most services on 1 March 2024, per RMCD. The 1 July 2025 SST expansion added construction, private healthcare, education, and financial services, per the Ministry of Finance, with a penalty-free compliance grace period through 31 December 2025. Commenda’s guide to SST registration in Malaysia for foreign companies covers the process.
What Is the Malaysia SME Corporate Tax Rate?
Small and medium enterprises (SMEs) pay a tiered corporate tax rate, starting at 15% on the first RM150,000 of chargeable income, per LHDN. Do not confuse the RM150,000 income band with the RM150 million revenue ceiling used to qualify as an SME. Those are different numbers.
| Chargeable income band | Rate | Source |
|---|---|---|
| First RM150,000 | 15% | LHDN |
| RM150,001 to RM600,000 | 17% | LHDN |
| Above RM600,000 | 24% | LHDN |
SME eligibility has three conditions: paid-up capital of RM2.5 million or less, gross income of RM150 million or less, and no related company exceeding those ceilings. Verify the current bands against LHDN for your year of assessment.
What Business Licenses Do You Need in Malaysia?
License needs depend on your activity and location. Nearly every business needs a premises and signboard license from the local council, called the PBT (Pihak Berkuasa Tempatan). Specific sectors need federal licenses. Foreign-majority distributive trade companies need the WRT license, applied for through KPDN after incorporation, which requires RM1,000,000 paid-up capital and takes weeks to months.
| License | Issuer | Who needs it | Typical timeline |
|---|---|---|---|
| Premises and signboard | Local council (PBT) | Nearly all businesses | Weeks |
| WRT license | KPDN | Foreign-majority distributive trade | Weeks to months |
| Manufacturing license | MITI | Manufacturers above size thresholds | Weeks to months |
| Sector licenses | Relevant regulator | F&B, education, and similar | Varies |
How Do You Register for EPF and SOCSO as an Employer?
Once you hire your first employee, register as an employer with the Employees Provident Fund (EPF, also KWSP) and the Social Security Organisation (SOCSO, also PERKESO), which also administers the Employment Insurance System (EIS). Register an employer tax file with LHDN for monthly PCB salary deductions. EPF registration is due within 7 days of hiring, and SOCSO within 30 days.
Get this order right. The entity and bank account must exist before payroll runs, so sequence your first hire after incorporation.
Who Must Register for the HRD Corp (HRDF) Levy?
Employers in covered sectors with 10 or more Malaysian employees must register with the Human Resources Development Corporation (HRD Corp, formerly HRDF) and pay a 1% monthly levy on employee wages. Employers with 5 to 9 employees in covered sectors may register voluntarily at 0.5%. Verify current coverage and rates with HRD Corp.
You register through the HRD Corp portal. The levy funds employee training claims your company can later draw on.
What Are the Ongoing Compliance Requirements for a Malaysian Sdn Bhd?
An Sdn Bhd must file an annual return, lodge financial statements, and file a corporate tax return every year. The annual return is due within 30 days of the incorporation anniversary, per SSM. Missing statutory deadlines can render an entity not in good standing, which is hard to reverse, so track them from day one.
| Obligation | Deadline | Authority |
|---|---|---|
| Annual return | Within 30 days of incorporation anniversary | SSM |
| Financial statements | Circulated within 6 months of financial year end, lodged within 30 days after | SSM |
| Corporate tax return (Form C) | Within 7 months of financial year end | LHDN |
| Tax estimate (CP204) | Filed and revised per LHDN schedule | LHDN |
| Audit | Required unless audit-exempt | SSM |
Audit exemption thresholds are rising in phases toward RM3 million revenue, RM3 million assets, and 30 or fewer employees. This replaces the old RM300,000 figure. Verify the current SSM Practice Directive, and track deadlines with Commenda’s compliance calendar.
How Commenda Helps You Incorporate in Malaysia
Here is the verdict again: you register an Sdn Bhd through MyCoID for RM1,000, approved in days, not months. The real work is everything after: the resident director, company secretary, tax file, SST, licenses, and bank account. That is where foreign founders lose weeks.
Commenda’s incorporation service handles name reservation, SSM filing, company secretary and registered office, tax registrations, and bank account setup, so your twelfth country follows the same certain process as your first. For the wider picture, read Commenda’s guide on how to start a business in Malaysia as a foreigner.
Book a demo to get a clear timeline and cost breakdown for your Malaysia entity: schedule your Commenda demo.
