1. Foreign shareholding and legal offshore structures
Foreign holding authority：Allow corporate legal persons or natural persons to be 100% wholly-owned。
statutory capital standards：The minimum paid-in registered capital of a joint stock company is 1 Ringgit (RM 1)，No capital limit。
Audit exemption conditions：Qualify for dormant companies、Small and micro enterprises with zero income or specific assets/income minimum，You can apply for annual audit exemption from SSM in accordance with the law。
Labuan(Labuan)offshore structure：Regulated by LFSA，The net trade profit tax rate that meets the requirements of the real economy is 3%，Non-trading holding activities are exempt from income tax (0%)，No exchange controls。
2. Statutory establishment requirements for private limited companies
Company Name
Only accept English，Must be identified as "Sendirian Berhad" or "Sdn. Bhd." ending。The name must be searched through the SSM system and approved for retention.。
Local resident director
At least 1 local director (Malaysian citizen) aged 18 years or above、Main residents or foreign executives holding employment passes)。Must sign a no-bankruptcy and no-conviction compliance statement。
company shareholders
Number of people: 1 to 50 people。natural person orbusiness entityAll are acceptable。One person can serve as both director and shareholder，Directors are not required to be shareholders。
Legal Company Secretary
Company establishedAt least 1 adult resident in Malaysia holding a valid SSM practicing certificate must be appointed within the next 30 days.。It is strictly prohibited for the company’s sole director or shareholder to concurrently serve as。
Specific working capital threshold
Wholly foreign-owned enterprises apply for work passes for foreign employees，Paid-up capital must be RM500,000；Working in wholesale and retail industries，Paid-up capital must be RM1 million。
Legal registered address
Must provide a local business address within Malaysia asRegistered office，For keeping statutory books and receiving official correspondence。
3. Cases of Chinese-funded enterprises establishing Malaysian entities
BYD (BYD) With Geely Holding
BYD Registration BYD Malaysia Sdn. Bhd. entities，Responsible for wholesale, retail and local assembly of passenger cars(CKD)plan。Geely acquires Proton(Proton) 49.9%Equity，Export technology to Tanjung Malim factory。
ByteDance、Tencent and Alibaba
Bytedance Registration Bytedance System Sdn. Bhd. Other entities invest in establishing regional AI centers。Tencent is established in Kuala LumpurOffice base。Alibaba jointly builds DFTZ digital free trade zone and eHub。
LONGi Green Energy and China General Nuclear Power Group
LONGi Green Energy sets up photovoltaic manufacturing bases in Sarawak and Selangor。CGN becomes independent power producer through acquisition of Edra Power Holdings Sdn Bhd。
CRRC Zhuzhou Locomotive Co., Ltd. and Country Garden
CRRC establishes Kuala Lumpur CRRC maintenance and rail transit equipment manufacturing entity。Country Garden participates in the development of Forest City (Special Financial Zone SFZ) through Country Garden Pacificview Sdn Bhd。
4. Legal establishment process and submission of case files
Name retrieval and retention
Via MyCoID 2016 The platform submits 1 preferred and 2 alternative English names。Pay the fee after approval，Names are retained for 30 days (can be extended up to 180 days)。
Issue KYC and sign compliance documents
Provide copies of passports of directors and shareholders、Proof of residential address。If the shareholder is an overseas enterprise, the parent company registration certificate is required。Director signs compliance statement。
System submission and fee payment
Fill in the main business、Registered address and business address。Submit registration application to SSM and pay the official registration fee of RM1,000。
Official approval and operational compliance
SSM will issue an approval and registration notice after passing the review.(Notice of Registration)(about 7 working days)。A legal secretary must be formally appointed within 30 days of establishment。
5. Official administrative fees and capital statutory requirements
| Legal items | statutory requirements / Fee base | Applicable conditions and instructions |
|---|---|---|
| SSM name application fee | 50 Ringgit / Second-rate | to the Companies Commission of Malaysia(SSM)Single official fee for submitting a name reservation application。 |
| SSM official registration fee | 1,000 Ringgit | set upCo., Ltd.(Sdn. Bhd.)official registration fee。(RM3,000 for companies limited by guarantee)。 |
| Accurate paid-in capital for foreign work | ≥RM500,000 | The legal minimum requirements for wholly foreign-owned enterprises to apply for work passes for foreign employeesRegistered capitalRequire。 |
| Foreign wholesale and retail(WRT)capital | ≥RM1 million | Legal minimum registered capital requirements for foreign-invested entities engaged in the wholesale and retail industry and applying for a WRT license。 |
6. Statutory Compliance Obligations and Violation Liability
[Requirements for Appointment of Legal Secretary] Provisions of the "Company Law 2016"，The company must appoint a legal secretary holding an SSM license within 30 days of establishment。The sole director or sole shareholder of a company shall not concurrently hold the position of secretary according to law。
[Replacement of Local Director Resignation] If the local director of the company resigns，Shareholders are required by law to appoint a new local resident director within 6 months at the latest.。
[Pre-approval of industry license] Ordinary company registration notice (Notice of Registration) is not equivalent to a business license。Engage in medicine、travel、Catering or foreign-invested wholesale and retail industries，Must apply for a specific license or permit from the relevant government ministry before opening business。
[Annual Financial Audit Obligations] Except for specific small and micro/dormant companies that have applied to SSM in accordance with the law and been approved for audit exemption.，All registered companies must keep accounting records，Prepare annual accounts every year and appoint auditors to audit them。
7. Malaysia Private Limited Legal Questions (FAQ)
Company registration and day-to-day administration are managed by the Companies Commission of Malaysia (SSM)；Tax registration belongs to the Inland Revenue Board (IRBM)；Labuan offshore entities are regulated by the Labuan Financial Services Authority (LFSA)。
allow。The number of shareholders of a private limited company is limited to 1 to 50。Natural persons or corporate legal persons can serve as shareholders，Foreign capital can achieve 100% control。
Must appoint at least 1 local director who is over 18 years old。The director must be a Malaysian citizen or have his main place of residence in Malaysia (including foreigners holding employment passes)，And no bankruptcy or criminal record。
The minimum paid-up registered capital for a joint stock company is RM1.。You can add it at any time after registration，No amount limit。
If a wholly foreign-owned enterprise needs to hire foreign employees and apply for a work permit，The paid-in registered capital must reach RM500,000。
Wholly foreign-owned enterprises engaged in wholesale and retail industries，The paid-in registered capital must reach RM1 million。
Must be appointed。Within 30 days after the company is established, an adult who mainly resides in Malaysia and holds an SSM practicing certificate must be appointed as the。The sole director or shareholder of the company shall not concurrently serve。
Submit via the MyCoID online system。Name search takes about 1-2 working days；After submitting your complete application，SSM official approval takes approximately 7 working days to issue approval and registration notices。
Annual accounts must be prepared and auditors appointed。However, dormant companies that meet certain conditions、Zero-income companies or small and micro enterprises that do not meet the asset/income threshold can apply for audit exemption，Still required to submit unaudited statements。
Labuan trading company that meets the requirements of the real economy，The audited net profit tax rate is 3%；Carrying out non-trading activities (such as investment holdings) is exempt from income tax (0%)。
