Register a Foreign-Owned Company in Malaysia
What is a Foreign-Owned Private Limited Company in Malaysia?
Before registering a company in Malaysia, you must first determine the business entity that best suits your needs. A Private Limited Company (Sdn Bhd) is the most common choice as it offers limited liability protection and a separate legal entity status. A company is considered foreign-owned if 51% or more of its shares are held by foreigners, but ownership rules vary across industries. Some sectors allow 100% foreign ownership, while others require a local shareholder or director.
Foreign-owned companies in Malaysia must comply with the Companies Act 2016, and certain industries require additional approvals from MIDA, MOF, or MITI. Some businesses also have minimum capital requirements, such as RM1,000,000 for foreign-owned trading companies. Despite these regulations, Malaysia remains business-friendly, offering various tax incentives and support for foreign investors.
If you’re planning to set up a foreign-owned Sdn Bhd, it’s essential to understand the legal requirements and industry restrictions. Get professional guidance to ensure a smooth registration process and full compliance with Malaysian laws. Contact us today for expert advice!
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FAQ About Foreign-Owned Company
Do I need to appoint a nominee director?
No, a nominee director is not required. The important thing is that the company must have at least one director who lives in Malaysia, regardless of visa type. This fulfils the requirement under Section 196(4) of the Companies Act 2016.
Can a foreigner own 100% of a company?
Yes, certain industries allow 100% foreign ownership, such as technology, manufacturing, and some service sectors. However, others like retail, wholesale, and logistics may have restrictions or require a local shareholder.
Do I need a residential address in Malaysia?
As for directorship, only one director who ordinarily resides in Malaysia is sufficient to meet the requirement under Section 196(4) of the Companies Act 2016.
What are the basic requirements to register a foreign-owned company?
To register an Sdn Bhd, you need:
- At least one director who is a resident in Malaysia (Mean need to have one address and stay in Malaysia)
- A minimum of one shareholder (which can be foreign)
- A registered business address in Malaysia
- A company secretary within 30 days of incorporation
How long does it take to register a foreign-owned company?
The registration process typically takes 3 to 7 working days, depending on government processing time and the submission of complete documents.
Is there a minimum capital requirement for a foreign-owned company?
Do I Need to Come to Malaysia to Open a Company?
No, you do not need to be physically present in Malaysia to register a company. With Malaya Corporate, the entire process can be done remotely. However, we are required to conduct a few Know Your Customer (KYC) verifications to comply with regulations.
Is Every Business Open for Foreigners in Malaysia?
Mostly yes, but some industries have restrictions on foreign ownership. While many sectors allow 100% foreign ownership, industries like retail, wholesale, oil & gas, logistics, and certain professional services may require a local shareholder or director due to regulatory policies.
FAQ – Malaya Corporate Charges & Fees
Is the cost of registering a company with Malaya Corporate the same for foreigners?
Yes, the registration fee follows Malaysia’s standard company registration cost.
However, for foreign-owned companies, we collect a one-year advance payment for company secretary services to ensure compliance and seamless business operations.
What is included in the company registration package?
✅ Company Name Search & Reservation
✅ SSM Registration & Incorporation Certificate
✅ First Year Company Secretary Services (FREE Customer Portal)
✅ Statutory Documents & Compliance Advisory
✅ Business Bank Account Assistance
Do you provide other services?
We can help coordinate support for bookkeeping, tax filing, and payroll through our trusted partners to ensure your company remains compliant with Malaysian regulations. These are subject to separate charges
I Want to Register My Company in Penang, But You Are in KL. Is There a Difference?
No, there is no difference. In Malaysia, all Sdn Bhd company registrations are handled online through the Suruhanjaya Syarikat Malaysia (SSM) system, regardless of location. This means you can register a company in Penang, KL, Johor, or anywhere in Malaysia with us.
Do You Assist with Business Licenses? How Much Does It Cost?
Yes, we assist with business license applications in Malaysia.
However, the cost and process depend on your business type, as different industries have different licensing requirements from various authorities such as MIDA, MOF, MITI, DBKL, and local councils.
Can You Assist with Company Registration in Labuan?
Do You Provide Nominee Director Services?
We do not directly offer nominee director services. However, we collaborate with trusted professionals who provide such services, subject to proper due diligence and legal compliance under the Companies Act 2016.
Do You Assist with Director Visa Applications?
Yes, we assist with Director Visa applications, but the charges vary depending on the type of visa, business industry, and immigration requirements.