Step by Step Guide for Foreigners to Start a Business in Malaysia

Entrepreneurial-minded small business owners looking to expand internationally often find Malaysia an ideal destination to establish a company. Known for its vibrant commercial environment and relatively lower cost of living, Malaysia offers a welcoming landscape for foreign investors.

Beyond its affordable operating costs, Malaysia provides tax incentives and streamlined business registration processes, making it particularly appealing to foreign entrepreneurs. Additionally, the government offers various forms of support to encourage international businesses to thrive within the country.

Malaysia’s strategic location in Southeast Asia and its robust infrastructure further enhance its appeal, providing access to a dynamic regional market and facilitating seamless business operations. These factors collectively position Malaysia as a prime choice for entrepreneurs aiming to establish a strong foothold in the region.

Who is SSM?

The Suruhanjaya Syarikat Malaysia (SSM), also known as the Companies Commission of Malaysia, plays a pivotal role in the incorporation and regulation when it comes to start a business in Malaysia. Whether you’re a local entrepreneur or an expatriate looking to register a new business in Malaysia, adherence to SSM’s registration process is imperative. This guide provides a straightforward and formal overview of the key steps involved in successfully registering a company with SSM to run your business. The governmental body for Malaysia’s company registry is the Suruhanjaya Syarikat Malaysia (SSM). All entrepreneurs and business owners need to register a business entities with SSM.

There are 3 parts to your company registration process:

• Pre-registration
• Registration with SSM
• Post-registration

What to Do After Company Registration in Malaysia?

After registering and getting your incorporation certificate, your business is now a legal entity, and you can start your business if no additional licenses are required.

Here is a complete guide that needs to be followed after your company has been successfully registered:

Opening a business bank account

It is important to open a business bank account to settle your business affairs in Malaysia.  If you are a foreigner, the process to open bank account in Malaysia may be more difficult as compared to a local.

We have provided our insights on the challenges that you may face and the process of getting a bank account here.

Some of the banks available in Malaysia that you can consider include:

• Maybank
• CIMB Bank
• RHB Bank
• UOB Bank
• Hong Leong Bank Berhad

The documents required to open a corporate bank account are:

• Section 14 – Superform (Application for registration of a company)
• Section 15 – Notice of Registration (Certificate issued by SSM)
• Section 17 – Certificate of Incorporation
• Section 46 – Particular of registered address
• Section 58 – Particulars of directors
• Section 58 & 236 (2) – Appointment of first company secretary
• Section 78 – Particulars of shareholders and shares
• NRIC/ Passport
• Business Plan
• Proof of residential address
• Tenancy agreement of business address (if any)

Applying for business licenses (if needed)

There are 3 categories for business licenses in Malaysia:

• General licenses from local town councils
• Industry or sector specific licenses from government ministries
• Activity-specific licenses

See our guide on the types of business licenses required for various industries. Typically, the duration for business license approvals takes between 1-6 months.

Fulfilling your tax obligations & annual business reporting compliance

Every company operating in Malaysia is required to fulfill its tax obligations and comply with the regulations stipulated in the Companies Act 2016.

The corporate tax rate in Malaysia stands at 24%. It’s mandatory for companies to file their taxes annually, unless specifically exempted.

To determine if your company qualifies for tax exemptions or incentives, you can read more about it here.

 Hiring local or foreign employees

The last but most important thing is hiring employees for your company. In Malaysia, all employers are required to register with the Employee Provident Fund (EPF) within 7 days before your employee’s start date.

Here are the documents required for EPF registration for private sector employers:

• Form KWSP 1
• Form 49
• SSM Company Incorporation Certificate
• Director’s identification card

If you are unsure of your employer’s obligations to your employees, you can read our comprehensive guide to EPF, SOCSO, EIS and MTD in Malaysia.

For foreign employees, you will need to apply on their behalf a work visa. Foreign business owners are also required to apply for an employment pass under the company.

Paul Hype Page Malaysia Company Registration Process

At Paul Hype Page, we have our own proprietary software for company registration and corporate secretarial activities. All company secretarial and incorporation processes are done online, without a need to be present physically in Malaysia.

If you were to appoint us as your trusted incorporation provider, here are the steps that business need to follow through for setting up a company.

The process is simple – provide and sign all the documents digitally and our team will handle the rest.