What Will It Cost To Set Up In Malaysia?
Answer seven quick questions about your business and we'll show you a real cost range, an estimated timeline, and anything you'll need to sort out along the way — no obligation, just a straight answer.
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How much does it cost to set up a company in Malaysia as a foreigner?
Incorporating a Sdn Bhd (private limited company) typically starts from around RM4,250 for the base incorporation package. If you don’t have a Malaysian resident director, add a nominee director service (from RM12,000/year plus a refundable RM5,000 deposit). Total setup cost varies depending on whether you also need a business premises licence, a WRT licence, or an Employment Pass — most foreign founders land somewhere between RM15,000 and RM30,000 for year one, excluding government fees and SST.
Can a foreigner own 100% of a company in Malaysia?
Yes. Malaysia allows 100% foreign shareholding in most sectors. The one requirement is that the company must still have at least one director who is a Malaysian citizen, permanent resident, or valid long-term visa/work permit holder; shareholding and directorship are separate requirements.
Do I need a local director to register a company in Malaysia?
Yes, by law every Sdn Bhd needs at least one Malaysia-resident director, even if you own 100% of the shares. If you don’t have a local partner or contact who can take this role, a nominee director service fills that requirement for you.
What is the minimum paid-up capital for a foreign-owned company in Malaysia?
It depends on your structure: RM1 minimum on paper for a basic company with no special licences, RM500,000 for a 100%-foreign-owned company applying for an Employment Pass, RM350,000 for a joint venture with ≥30% foreign shareholding, and RM1,000,000 if you need a WRT (Wholesale & Retail Trade) licence.
Do I need a WRT licence to run a trading business in Malaysia?
If your company is foreign-majority owned (over 50%) and operates in trading, import-export, retail, F&B, franchising, or distributive trade, you’ll generally need a WRT licence this requires RM1,000,000 in paid-up capital and typically costs RM6,000–9,000 in professional fees, excluding the government fee. If a Malaysian director holds the majority shareholding instead, the WRT requirement is exempted.
What ongoing costs are there after incorporating in Malaysia?
Beyond the one-time setup, every Sdn Bhd needs an annual company secretary retainer (roughly RM95/month) plus statutory SSM lodgements for Annual Return (~RM350), Beneficial Owner declaration (~RM150), and Financial Statement lodgement (~RM200); each due once a year.
What other compliance costs should I budget for after incorporation?
Beyond the company secretary retainer and SSM lodgements, most active companies also need: bookkeeping/accounting (from around RM1,800/year for a dormant or low-volume company, scaling up with transaction volume), corporate tax compliance (filing + tax computation, from roughly RM1,450/year for smaller turnover), and an annual audit if your company doesn’t qualify for the small-company audit exemption. If you’re registered for e-invoicing or SST, factor those filing costs in too. As a rough planning number, budget an extra RM3,000–6,000+ per year on top of the company secretary retainer once the business is actually trading, not just dormant.
How does Malaysia avoid double taxation on company profits and dividends?
Malaysia uses a single-tier tax system: corporate profits are taxed once at the company level (24% standard rate, or 17% on the first RM150,000 for qualifying SMEs), and dividends paid out to shareholders after that are generally tax-exempt in the shareholder’s hands — so profits aren’t taxed again when distributed. The one exception: starting YA2025, an individual shareholder’s total annual dividend income above RM100,000 (excluding exempt dividends) is subject to a 2% tax.
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