Quick answer: A foreigner can set up a Sdn Bhd in Malaysia and hold the shares. You need one director who lives in Malaysia, a company secretary who is a Malaysian citizen or permanent resident, and a Malaysian registered office. SSM charges RM1,000 for direct registration. SSM sets no minimum capital, but Immigration asks RM500,000 or more if you will hire foreign staff.
- A foreigner can hold the shares of a Sdn Bhd, up to 100% in most cases.
- You need a resident director, a local company secretary and a Malaysian registered office.
- SSM fees: RM1,000 for direct registration, or RM50 to reserve a name first.
- Appoint the secretary within 30 days, then record beneficial owners within the deadlines.
- Hiring foreign staff needs paid-up capital of RM500,000 or more for a 100% foreign-owned company.
What You Need
The basics for a foreign-owned Sdn Bhd.
| What you need | Rule | Who sets it |
|---|---|---|
| Shareholder | At least 1, up to 50. A foreigner can hold 100% in most cases. | SSM, MIDA |
| Director | At least 1 who lives in Malaysia. A natural person aged 18 or above. | SSM |
| Company secretary | Malaysian citizen or permanent resident, appointed within 30 days of incorporation | SSM |
| Registered office | A Malaysian address open to the public during business hours | SSM |
| Paid-up capital | No legal minimum. Immigration asks RM500,000 or more to hire foreign staff. | Immigration (ESD) |
Step-by-Step Guide
Nine steps from idea to first filings.
Check your activity and its approvals
Find out whether your activity needs a licence, permit or approval, and whether it carries equity or capital conditions. Wholesale and retail trade needs KPDN approval for foreign involvement.
Some business activity codes need a supporting letter when you apply. SSM's page names licensed money lending, which needs an approval letter from the local council, and weapons and ammunition, which needs a consent letter from the Ministry of Home Affairs.
See our guide on foreign ownership for the sector rules.
Choose the structure
Most foreign owners choose a Sdn Bhd because it is a separate legal entity and limits shareholders' liability. A sole proprietorship is open only to Malaysian citizens and permanent residents. An LLP needs at least two partners and a compliance officer living in Malaysia.
See our comparison of the three structures.
Plan your paid-up capital
SSM sets no minimum. Decide the amount from what you need. If you will hire foreign staff, Immigration asks for RM500,000 if you are 100% foreign-owned, and RM1,000,000 for foreign-owned wholesale, retail and trade or unregulated service companies.
See our minimum capital guide.
Line up your resident director, secretary and address
You need:
- at least one director who is a natural person aged 18 or above with a principal or ordinary residence address in Malaysia;
- a company secretary who is a Malaysian citizen or permanent resident, licensed by SSM or a member of an approved professional body;
- a registered office in Malaysia, open to the public during ordinary business hours.
Prepare the company details
Prepare the company name, the business activity, the registered office address in full (unit, level, building, road, city, postcode and state), and the details of the directors, shareholders and secretary. If a company will be a shareholder, prepare its consent document.
A constitution is optional for a company limited by shares.
Apply to SSM
You apply through SSM's online system.
- Register as a user on the Corporate Registry System (MyCoID) portal and activate your account by email.
- Verify your account at an SSM counter or tap.it kiosk, then log in to the SSM4U portal.
- Choose direct registration or name reservation, and choose the company type, which is private (Sdn Bhd).
- Complete the incorporation form (the Super Form under section 14), covering the company, directors, shareholders and declarations, then pay online.
- After approval you receive a notice of approval and a notice of registration.
If you reserve a name first, you have 30 days after approval to file the company particulars.
Appoint the company secretary
Appoint the first company secretary within 30 days from the date of incorporation. The appointment is submitted through SSM's Corporate Registry System. See our company secretary guide.
Record your beneficial owners
Every company must keep a register of beneficial owners, who are the natural persons who ultimately own or control the company.
- Obtain the information within 60 days of appointing the company secretary.
- Record it within 14 days of receiving it.
- Lodge it with SSM within 14 days of recording it.
Apply for licences, passes and incentives
Now apply for the approvals your plan needs. This may include KPDN approval, a licence from your activity's regulator, registration with Immigration's Expatriate Services Division to hire foreign staff, or incentive status such as Malaysia Digital, which needs RM1,000 in paid-up capital within 12 months of the award.
Setting up from overseas? We will guide you through every step by video call.
Details to Prepare Before You Apply
- Proposed company name, and one or two alternatives.
- Business activity and the matching activity code.
- Registered office address in Malaysia, with unit or lot, level, building, road, city, postcode and state.
- Details of each director, including the Malaysian residence address of at least one.
- Details of each shareholder, and the number of shares each will hold.
- Details of the company secretary.
- A consent document from any company that will be a shareholder.
- A supporting letter if your activity is a restricted one.
What It Costs
SSM fees.
| Item | Fee | Note |
|---|---|---|
| Name reservation only | RM50 | Per name. Then 30 days to file the company particulars. |
| Direct registration (name search and incorporation) | RM1,000 | Paid to SSM |
| Annual return, private company | RM150 | Every year, to SSM |
| Financial statements, private company | RM50 audited, RM20 unaudited | Every year, to SSM |
These are SSM fees. They exclude company secretary and professional fees.
Common Mistakes
Incorporating before checking the licence
Some activities carry equity or capital conditions. Check first.
Choosing a sole proprietorship
It is open only to Malaysian citizens and permanent residents.
Having no resident director or secretary ready
Both must be in Malaysia. Line them up before you file.
Missing the beneficial owner deadline
The 60-day and 14-day periods start soon after incorporation.
Frequently Asked Questions
Quick answers for foreign owners.
Can a foreigner set up a company in Malaysia?
Yes. A foreigner or a foreign company can hold the shares of a Sdn Bhd. The company needs at least one director who ordinarily lives in Malaysia and a company secretary who is a Malaysian citizen or permanent resident.
What type of company should a foreigner set up in Malaysia?
Most foreign owners set up a Sdn Bhd. SSM's guidelines say a sole proprietorship is open only to Malaysian citizens and permanent residents. A Sdn Bhd is a separate legal entity and limits shareholders' liability.
How much does it cost to register a Sdn Bhd?
SSM charges RM1,000 for direct registration, which combines the name search and incorporation. Reserving a name alone costs RM50. Company secretary and professional fees are extra.
Do I need a Malaysian director?
Yes. At least one director must be a natural person aged 18 or above with a principal or ordinary residence address in Malaysia.
Do I need a company secretary?
Yes. You must appoint the first company secretary within 30 days of incorporation. The secretary must be a Malaysian citizen or permanent resident, and either licensed by SSM or a member of an approved professional body.
Do I need a Malaysian address?
Yes. The company must always have a registered office in Malaysia that is open to the public during ordinary business hours. A change must be notified to SSM within 14 days.
How much capital does a foreign company need?
SSM sets no minimum. To register with Immigration and hire foreign staff, a 100% foreign-owned company needs RM500,000 in paid-up capital, and foreign-owned wholesale, retail and trade or unregulated service companies need RM1,000,000.
What do I need to report after incorporation?
Every company must keep a register of beneficial owners and lodge it with SSM. You must obtain the information within 60 days of appointing the company secretary, then record and lodge it within 14 days each.
Do I need a licence for my business?
It depends on the activity. Wholesale and retail trade needs KPDN approval, and other activities may need licences, permits or approvals that carry their own conditions.
Does the company need a constitution?
A constitution is optional for a company limited by shares. If the company adopts one, it must be lodged with SSM within 30 days of adoption.
What details do I need to prepare before applying?
Prepare the company name, the business activity, the registered office address, and the details of the directors, shareholders and company secretary. A corporate shareholder needs a consent document, and some activities need a supporting letter.
Can I hire foreign staff right after incorporation?
Not immediately. The company first registers with Immigration's Expatriate Services Division, which asks for paid-up capital based on ownership before it can hire foreign staff.
About This Guide
This guide was prepared by Neutral Consulting PLT, a Kuala Lumpur firm of chartered accounting and advisory professionals with 10 years in practice. We help foreign and local companies set up, stay compliant and hire talent in Malaysia. Every figure and rule here was checked against the official sources listed below in November 2026.
Sources
Official sources
- SSM, Submitting Incorporation Particulars for a Company
- SSM, Guidelines for Incorporation of a Local Company
- SSM, Comparison of Business Entities in Malaysia
- SSM, Guideline for the Reporting Framework for Beneficial Ownership
- SSM, Annual Submission
- MIDA, Equity Policy
- Immigration Department of Malaysia, ESD Online Guidebook V5 (September 2024)
- MDEC, Malaysia Digital (MD) Status Guidelines
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with SSM, MIDA, Immigration and MDEC, or with us, before you act. Checked November 2026.
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