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Company Registration in Malaysia for Foreigners 2026

Admin
Aug 24
4 min read

Company Registration in Malaysia for Foreigners



Company Registration in Malaysia for Foreigners



Company registration in Malaysia for foreigners can feel exciting, but the process must be set up carefully from the start.


You may already see your business taking shape in Malaysia.


But before you open a bank account, sign contracts, hire staff, or apply for licences, your Sdn Bhd structure should be clear, compliant, and ready for long-term growth.


At Ashton Corporate Services, we help foreign entrepreneurs and investors register Malaysian companies with practical guidance, company secretarial support, and ongoing compliance assistance.




Can Foreigners Register a Company in Malaysia?



Yes, foreigners can generally register a private limited company, commonly known as a Sdn Bhd, in Malaysia.


SSM states that a private company must have at least one director who ordinarily resides in Malaysia by having a principal place of residence in Malaysia, and at least one promoter.


This means a foreigner may own shares in a Malaysian company, but the company must still meet Malaysian director, registered office, company secretary, licensing, tax, and compliance requirements.


Foreign ownership is also not always the same for every industry.


MIDA states that the Companies Act 2016 does not impose general equity conditions on Malaysian incorporated companies, but specific equity conditions may be imposed by regulating ministries or agencies for certain approvals, operating licences, permits, or registrations.




Key Requirements to Prepare


Before starting company registration in Malaysia for foreigners, prepare these details:


  • Proposed company name

  • Business activity and MSIC code

  • Director details

  • Shareholder details

  • Paid-up capital

  • Registered office address in Malaysia

  • Licensed company secretary

  • Beneficial owner information

  • Licences or permits, if your industry requires them



SSM states that every company must have a registered office in Malaysia, and the Registrar must be notified of any change of registered office within 14 days.


SSM also states that the first company secretary must be appointed within 30 days from the date of incorporation.


The secretary must meet legal requirements, including being a natural person, at least 18 years old, a Malaysian citizen or permanent resident who ordinarily resides in Malaysia, and a member of a recognised professional body or licensed by SSM.




Important 2026 Compliance Points


Incorporation is only the first step.

After registration, your company must also stay compliant with SSM and tax requirements.


For 2026, foreign business owners should pay attention to:


  • Annual return filing

  • Statutory registers and resolutions

  • Beneficial ownership reporting

  • Tax registration and tax filings

  • e-Invoice obligations

  • Accounting records

  • Business licences

  • Employment or immigration approvals, if applicable


SSM’s e-BOS system is used for updating and rectifying beneficial ownership information under the Companies Act 2016. It allows companies to add, update, or cease beneficial owner or senior management information.


HASiL’s e-Invoice timeline states that taxpayers with annual income or sales up to RM5 million are required to implement e-Invoice from 1 January 2026, while taxpayers with annual income or sales below RM1 million are exempted.


Foreign-owned companies should also get proper tax advice.


LHDN’s Public Ruling 8/2025 states that, effective from YA 2024, companies with more than 20% of paid-up ordinary share capital directly or indirectly owned by foreign companies or non-Malaysian individuals are not eligible for the preferential SME tax rate.




Does Company Registration Give You a Work Visa?


No. Registering a company does not automatically give a foreigner the right to work or stay in Malaysia.


If a foreign director, shareholder, or employee wants to work in Malaysia, immigration approval may be required.


The Expatriate Services Division states that an Employment Pass allows an expatriate to take up employment with an organisation in Malaysia, but approval from the Expatriate Committee or relevant authorities is required before the Immigration Department issues the pass.


ESD also states that companies wishing to employ eligible expatriates must register through ESD as a first step.




What Foreign Business Owners Often Miss


Many foreign investors focus only on incorporation.


But the smoother path is to prepare the full structure before submitting the application.


Common issues include:


  • Choosing the wrong business activity

  • Not checking licence requirements

  • Assuming 100% foreign ownership applies to every industry

  • Setting paid-up capital without considering banking or immigration needs

  • Not preparing beneficial ownership information

  • Forgetting e-Invoice readiness

  • Delaying tax and accounting setup

  • Assuming company registration gives immigration rights


When these areas are unclear, the process can feel heavy and frustrating.


With the right support, you can see each step clearly, hear practical guidance before making decisions, and feel more confident entering the Malaysian market.




How Ashton Corporate Services Can Help


Ashton Corporate Services supports Malaysian and foreign-owned companies with company incorporation, company secretarial services, tax and compliance, audit advisory, and accounting support through associates.


Ashton also provides licensed company secretarial services to help companies stay compliant with the Companies Act 2016 and SSM requirements, including statutory filings, corporate governance, resolutions, annual returns, director changes, shareholder changes, and registered office matters.



Our team can assist with:


  • Sdn Bhd incorporation

  • Company name application

  • Company secretary appointment

  • Registered office support

  • Statutory documents

  • Beneficial ownership compliance

  • Tax and accounting coordination

  • Post-incorporation guidance




Final Thoughts


Malaysia can be a strong place for foreign entrepreneurs to start or expand a business.

But the company setup must be done properly.


Before registering your Sdn Bhd, check your resident director requirement, shareholder structure, business activity, licences, registered office, tax position, e-Invoice readiness, beneficial ownership records, and immigration needs.


Planning company registration in Malaysia for foreigners?


Speak to Ashton Corporate Services today.


WhatsApp: 016-324 0990


Start your company registration in Malaysia for foreigners with Ashton today.

 
 
 

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