Entity Formation in Malaysia

Ready for a permanent Malaysian presence? We help you incorporate the right way, and stay alongside you for the accounting, payroll, and compliance that follow. Independent advice, including telling you when it is too early.

  • Independent advice
  • Vetted partners
  • Honest timing

What incorporating in Malaysia means

A Sendirian Berhad (Sdn. Bhd., private company limited by shares) is the standard vehicle for a permanent business presence, incorporated under the Companies Act 2016 and registered with the Companies Commission of Malaysia (SSM). A public company (Berhad, Bhd.) is the alternative for larger operations that plan to list or raise capital publicly. When you form one, you become the legal employer and operator in Malaysia, with full control and no per-employee EOR fees, in exchange for the setup time and the ongoing obligations.

01

Your own company

Your own Sdn. Bhd. makes you the legal employer and operator in Malaysia, with full control of employment terms and a local brand presence.

02

Lower cost at scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup takes time

Incorporation itself can be quick through SSM, but you cannot employ anyone until registration completes and a qualified company secretary is appointed. Timing the move matters, which is why many companies bridge with an EOR first.

How incorporating in Malaysia works, step by step

From structuring the company to operating it compliantly.

01 — Structure & prepare

We confirm incorporation is right for you, then run the company-name search with SSM, prepare the incorporation particulars, and arrange your registered Malaysian office address.

02 — Capital & lodgement

The incorporation application is lodged with SSM under Section 14(1) of the Companies Act 2016, no notary required. There is no statutory minimum paid-up capital, so RM 1 is technically sufficient, though banks and work-permit sponsorship rules commonly expect more in practice.

03 — Register the company

SSM issues notice of registration, a company secretary is appointed within 30 days, and the company registers with LHDN for corporate tax and with the Royal Malaysian Customs Department for SST if required, so you can operate and employ compliantly.

04 — Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What incorporating in Malaysia costs

Two kinds of cost: the one-off formation, and the ongoing operating obligations. Malaysia’s formation cost is low; the real commitment is the ongoing compliance. We give you a clear figure before you commit.

Share capital & formation

No statutory minimum paid-up capital for a Sdn. Bhd., so there is little to deposit before you incorporate. The SSM incorporation fee is RM 1,000 for a company limited by shares (RM 3,000 for a company limited by guarantee), plus RM 50 per name reservation.

Corporate tax

24% standard rate. Resident SMEs with paid-up capital of RM 2.5 million or less and gross income up to RM 50 million pay 15% on the first RM 150,000 of chargeable income, 17% on the next RM 450,000, and 24% on the balance.

SST

Malaysia has no VAT/GST. Sales Tax applies at 5% or 10% on goods, and Service Tax at 6% or 8% depending on the service category. Registration is mandatory once taxable turnover passes RM 500,000 over any 12-month period for most goods and services (higher thresholds of RM 1 million or RM 1.5 million apply to categories added in the 2025 SST expansion, including leasing/financial services, construction, and private healthcare).

Ongoing obligations

Accounting, monthly payroll (income tax, EPF, SOCSO, and EIS), SST and corporate tax filings, and an annual return lodged with SSM via the MBRS portal, all of which we can manage for you.

Why form your Malaysian company through Bradford Jacobs

Why companies incorporate in Malaysia through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

End-to-end, not just the paperwork

We do not disappear after registration. We stay on for the accounting, payroll, and compliance, so your company runs, not just exists.

  • Beyond registration
  • Ongoing compliance
  • One team throughout

The right specialists, in place

Company secretary, tax, and accounting partners we have vetted and worked with, coordinated for you, so the process moves and nothing gets missed.

  • Vetted specialists
  • Coordinated for you
  • Nothing gets missed

Two decades of formations

Two decades forming and running entities across global markets, with the local knowledge to keep you compliant and out of the common traps.

  • Incorporations
  • Legal & tax partners
  • Traps avoided

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your company operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The incorporation trap nobody flags

A growing business hits a good quarter and someone says, let us just set up a proper Malaysian company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: it takes a few weeks and is just admin. Reality: SSM incorporation itself can be quick, but a registered Malaysian office, a qualified company secretary appointed within 30 days, and registration with LHDN, KWSP, and PERKESO all apply, and you cannot legally employ anyone until those registrations are live.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving a company needs a shareholder resolution, creditor notification, and a winding-up period. And once it exists, the obligations do not stop: audited financial statements lodged with SSM, an annual return via the MBRS portal, monthly payroll filings, and corporate tax and SST returns. None of this is a reason not to incorporate. It is a reason to do it at the right time, with the right partners already in place.

What we handle for your company

Beyond incorporation, we can run the full back office for your company.

Compliant payroll

Compliant Malaysian payroll and employment administration, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax, EPF, SOCSO, and EIS calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on incorporating and running a company in Malaysia.

How long does it take to incorporate in Malaysia?

SSM incorporation itself can be completed in days once the name search, incorporation particulars, and registered address are in place. Appointing a company secretary (required within 30 days) and registering with LHDN, KWSP, and PERKESO typically extends the full timeline to a few weeks. You cannot legally employ anyone until those registrations are live, which is why timing matters and why many companies bridge with an EOR first.

There is no statutory minimum. The Companies Act 2016 abolished the old paid-up capital requirement, so RM 1 is technically sufficient, though banks and work-permit sponsorship rules commonly expect more in practice. The SSM incorporation fee is RM 1,000. The real cost is the ongoing accounting and compliance, which we can run for you.

Yes, for shareholding. There is no restriction on foreign shareholders, but a private company (Sdn. Bhd.) needs at least one director who ordinarily resides in Malaysia, so most foreign-owned companies appoint a Malaysia-resident director or use a nominee/professional director service. You will need a registered Malaysian office, which we arrange.

Incorporate when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll (income tax, EPF, SOCSO, and EIS), corporate tax and SST filings, audited financial statements lodged with SSM, and an annual return via the MBRS portal. We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your Malaysian company operates smoothly from day one without hiring locally for back office.

Ready to form your company in Malaysia?

Tell us your plans for Malaysia and we will tell you honestly whether now is the time to incorporate, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified July 2026 (LHDN, SSM, PERKESO, KWSP). Figures change; we confirm the current position when we scope your formation.