How to Setup a Company in Malaysia (i.e. Sdn Bhd Company)

We have assisted numerous local and foreign startup, social enterprise, SME and MNC to setup a Company in Malaysia. If would like to know more on how we can help you, drop us an email at or call +6017-2745203.

How to setup a company in malaysia (i.e. Sdn Bhd)

Latest update on Setting up a Company in Malaysia (Sdn Bhd Company)

Did you know that pursuant to the New Companies Act 2016 (came into force w.e.f 31 January 2017), the process of setting up a Company in Malaysia (i.e. Sdn Bhd Company) can be done online:

(1) at RM1,060.60

(2) using only one (1) persons name (long gone are the days where you need two(2) people to set up a Private Limited Company, Jyeah!!! SSM is Awesome)

(If you are still contemplating on the type of business vehicle to choose from, check out our article on -> How To Setup a Business in Malaysia)

Cost to Setup

The cost involved are as follows:

RM50 – Reservation of Name for 30 days

RM1,010.60 – Incorporation Fees


  • Name of proposed Company – prepare 3 names just incase your first choice is taken; (e.g.: LIGHTSABER MANUFACTURING SDN BHD, DEATH STAR SDN BHD or HAN SOLO SDN BHD) – WARNING: SSM reserves the right to reject your name reservation submission, which will require you to make another name reservation – each name reservation will cost you RM50 – so choose wisely
  • Principal Business Activity (e.g. Software Development, Construction & Renovation, or Car Rental)
  • Information on Identification Card or Passport of Shareholder/Director – min of 1 person; (YES, ONLY ONE PERSON IS SUFFICIENT – You don’t have to borrow your wife, girlfriend, brother, uncle, aunty or best friends name to set up a Private Limited Company)
  • Amount of paid-up capital (how much capital /modal are you injecting into the business); and
  • Percentage of shareholding of each shareholders (if there are multiple shareholders).


Yes, you will still need a company secretary for the following reasons:

  1. SSM requires that you must appoint a company secretary within 30 days from the date of incorporation and that the position must not be vacant for more then 30 days. If you are late – Late Lodgement Fees will be imposed.
  2. As soon as your Company is incorporated you will most probably need to open your account. You will then need a Company Secretary to prepare the resolutions to that effect.
  3. You will need a Company Secretary to lodge you annual returns and other relevant documents to SSM such as Company Constitution, Allotment of New Shares and Appointment of Directors and etc.

IMPORTANT NOTE 1: before the company formation it is also important to ensure that you are appointing the right person as your company secretary based on your business needs (Have a look at our guide on how to choose Company Secretary ->here)

IMPORTANT NOTE 2: if you are a foreigner, we don’t foresee you facing much barriers when incorporating a company in Malaysia, but we do foresee issues with setting up a bank account (Have a look at our article on some of the issues which foreigner will face -> here)

We have assisted numerous local and foreign startup, social enterprise, SME and MNC to setup a Company in Malaysia. If you would like to know more on how we can help you, drop us an email at or call +6017-2745203.

7 thoughts on “How to Setup a Company in Malaysia (i.e. Sdn Bhd Company)

  • Thank you for your sharing, may I know the following concerning a one person setting up a Sdn Bhd:
    1. Is there a minimum paid up capital required? if not, say I paid up RM100 as my capital and upon business failing, the liability is limited to RM100?
    2. Is it required to be audited?

    • Hai, thank you for reaching out. Nope there is no minimum paid up capital requirement for the purpose of setting up.

      Yes it will be limited to the RM100 which was contributed to the paid-up.

      As a general rule, yes it will be required to be audited on an annual basis.

  • Is the min.1 director rules applies to Foreigners?
    I mean, if a foreigner wants to set up a Sdn Bhd, does he/she needs a local partner? Thank you!

    • Hai Yeng Fong, thank you for the comments. The 1 directors rules and be used by foreigners as well. There is no legal barrier for foreigner to setup company alone. However, the need for local partner is normally because of other legal issues such as setting up local bank account, license application and other similar circumstances which requires a local partner. For the purpose of registration local partner is not required.

  • Hi Fareez,

    Thanks for this article. May I know if the shareholder and director could be the same person? Basically I want the limited liability status but the company is owned by me and only me.



    • Dear Wilson,

      Please be advised that it is permitted for the shareholder and director to be the same person. In fact since the coming into force of the Companies Act 2016 company can now be incorporated by a SOLE-PERSON and NO longer requires a minimum of 2 person composition.

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