Setting up a Company in Malaysia: A Detailed Guide( 2025)

To establish a company in Malaysia effectively and successfully, businesses need to master the legal regulations as well as the procedures for establishing a company. 

The following article by GLA will provide detailed instructions on the process, requirements and frequently asked questions when establishing a company in Malaysia, helping businesses to easily complete the procedure quickly and legally.

1. Conditions for opening a company in Malaysia that you need to know 

Before embarking on the company formation process, businesses need to clearly understand some basic requirements set forth by Malaysian law, especially for foreign companies wishing to open a company in this country. 

Requirements to be complied with include:

1.1. Company name

The company name must be pre-validated through the Companies Commission of Malaysia (SSM) online system at a fee of RM50.

Once the name is approved, the name will be held for three months from the date of approval. 

The name for a Malaysian company must meet the following requirements of the SSM authority:

• Name must not be duplicated, contain sensitive words, prohibited by Malaysian law.
• Name should be in Malay or English form.
• The name does not contain words related to government, training institutions, education, banking.

1.2. Number of shareholders

A company in Malaysia requires at least 1 shareholder, which can be an individual or an organization. A shareholder can be a person or a foreign company that owns 100% of the company.

However, for some key industries such as agriculture, finance, banking, oil and gas, Malaysian companies are required to have 50% Malaysian shareholders.

1.3. Company Director 

The company must have at least 1 director who is an individual at least 18 years old, has a residential address in Malaysia or is a Malaysian citizen and has no criminal record. The company director cannot be a legal entity.

A Malaysian company can have foreign directors, provided the company has met the residency requirement of at least 1 director.

GLA will provide nominee director services for Malaysian companies. The nominee director is only responsible for fulfilling the requirements of opening a company, they will not participate in the management of the company.

1.4. Company Secretary

Each company must have at least one company secretary who is a member of a professional secretarial body recognized by SSM or is individually licensed by SSM.

1.5. Minimum capital

Malaysia does not prescribe a minimum charter capital. Enterprises need to declare capital appropriate to the scale and business activities of the company. 

1.6. Office address

Every company needs to have an official office address in Malaysia to receive notices and correspondence from the authorities. GLA will support businesses with office address services at optimal cost, ensuring full remote operation functions.

1.7. Business license

If the company intends to operate in certain areas, it will have to apply for the appropriate business license and meet the necessary requirements.

2. Effective procedures for establishing a company in Malaysia

Setting up a company in Malaysia is an important step in expanding your business in the dynamic Southeast Asian market. The process requires careful preparation of legal documents, selection of the appropriate business model, and compliance with Malaysian government regulations.

Therefore, GLA will support Enterprises with the following standardized process, helping to save time and costs, while ensuring success when starting operations here.

3. Compliance after company formation in Malaysia

Once a company is incorporated in Malaysia, it is important to comply with legal regulations and maintain legal operations to ensure the company operates sustainably and avoid legal violations.

Below are the requirements to comply with after establishing a company that you need to know:

1. Annual financial report to SSM. This report must be audited by a licensed auditor.
2. The company must declare and pay corporate income tax to the Malaysian Tax Authority (MRA) as prescribed.
3. Register and pay GST (if applicable).
4. Maintain a designated secretary and director for the company.
5. Submit annual report.
6. Comply with labor laws (if any employees).
7. Conduct annual general meetings (AGMs) to report on operations, approve financial statements and resolve important issues related to the company.

4. How GLA supports businesses to open companies in Malaysia

Global Links Asia, with experience in consulting and supporting the establishment of a company in Malaysia, will support businesses in:

• Consulting on suitable company types, helping businesses optimize business operations.
• Assist companies in Malaysia to comply with laws and annual requirements legally, accurately and efficiently.
• Support for appropriate business license registration.
• Tax and accounting services and financial reporting according to Malaysian accounting standards.
• Register to open and verify a bank account with a reputable physical bank or digital bank. 

5. FAQs on the process of opening a company in Malaysia

Highlights

• Businesses need to meet the requirements for shareholders, directors' residence, office address and choose the appropriate business type (Sdn. Bhd., branch, representative office, etc.).
• Foreigners can easily open a company in Malaysia, especially with the support from GLA.
• GLA will support the Enterprise with office address service and designated director for Malaysian company when the Enterprise has demand.
• The company must comply with regulations on financial reporting, tax payment, holding annual shareholder meetings, and updating information with SSM.