The first choice for Hong Kong entrepreneurs to expand their business in Southeast Asia! New 2025 Malaysia Company Registration Guide, from application requirements, process, cost to FAQs.
Why Hong Kong people should choose Malaysia to open a company?
As a regional hub in Southeast Asia, Malaysia has in recent years become one of the leading countries in the region.Hot Spots for Hong Kong Entrepreneurs to Expand OverseasMalaysia is not only politically stable and economically robust, it also offers excellent infrastructure and friendly foreign investment policies. Malaysia is not only politically stable and economically robust, but also offers excellent infrastructure and foreign investment friendly policies.
For Hong Kong people, Malaysia has several unique advantages:
- Strategic Geographic Location: Malaysia is located in the center of Southeast Asia and is the gateway to over500 million people in the ASEAN marketIt is an important gateway to the world.
- Linguistic and cultural similarities: there is a large Chinese population in the area.Cantonese and PutonghuaThe cultural barrier is relatively small.
- Short flight distance: Hong Kong to Malaysia onlyApprox. 4 hoursThis will make it easier to travel between the two places for business purposes.
- Foreign investment friendly policies: permitted in most industries100% Foreign Ownership Ltd.and have limited liability coverage.
- Low cost of doing business: Compared to Hong Kong, Malaysia offersLower costWe are committed to maintaining a high quality infrastructure while maintaining a favorable operating environment for our customers.
Analysis of Malaysia Company Types
To start a company in Malaysia, you need to understand the types of business registration in Malaysia, which are mainly divided into the following categories:
- Private Limited (Sdn. Bhd.)
This isThe most common choice of foreignersThe company type allows 100% foreign ownership (except for some industries), the number of shareholders ranges from 1 to 50, and the shareholders' liability for the company's debts is limited to the amount of their capital contribution.
- Branch Office
Branches of foreign companies established in Malaysia have no independent legal personality, are liable to the parent company and can only engage in the same business activities as the parent company.
- Representative Office
For market research and business promotionNon-profit organizationsThe company is not allowed to engage in any income-generating activities and is subject to the approval of the Malaysian Investment Development Authority (MIDA).
- Limited Liability Partnership (LLP)
Combining the features of a corporation and a general partnership, members' liability for partnership debts is limited to the amount of their capital contribution and no annual audit is required.
For Hong Kong entrepreneurs, Sdn Bhd is the most common and suitable option.It offers the best legal protection and operational flexibility.
Conditions and requirements for company registration in Malaysia
Before you prepare to set up a company in Malaysia from Hong Kong, you need to understand the following basic requirements:
- Company Name: Must end with ”SDN. BHD.” and must be submitted to the Companies Commission of Malaysia (SSM) for name verification.
- Registered Capital: Minimum RM1.00, no mandatory paid-up requirement; however, higher capital requirement for specific industries (e.g. RM500,000 for consultancy, RM1,000,000 for import/export trade).
- Director Requirements: At least one director, who must be a legal resident of Malaysia (may be a citizen or permanent resident); the director must be at least 18 years of age, have no criminal record and not be declared bankrupt.
- Qualification of shareholders: at least one shareholder and a maximum of 50; shareholders can be natural or legal persons.
- Company Secretary: An SSM-approved business secretary, who must be a resident of Malaysia and meet the relevant qualifications, must be appointed.
- Registered Address: A local Malaysian registered address must be provided. P.O. Boxes cannot be used as the registered address of the company.
Detailed Procedures for Opening a Company in Malaysia
The process of registering a company in Malaysia is relatively simple and the following are the main steps:
- Preparation stage: Preparation of registered capital, hiring a qualified secretary, finding a suitable office address.
- Name Reservation: Register an account on the MyCoID platform, search and reserve your company name, valid for 30 days.
- Preparation of documents: Preparation of company registration documents, such as board of directors' memorandum, articles of incorporation, documents signed by directors and shareholders.
- Submission of Application: Complete the Superform and submit the required registration documents.
- Payment: Pay the company registration fee and receive the certificate of incorporation by email.
- Follow-up: Apply for a company bank account, business license (if applicable).
The entire registration process usually takes 1-2 weeks, but can be shortened to 7-10 working days if done through a professional agency.
V. Malaysia Company Setup Fee Schedule
Below is a detailed breakdown of the costs for a Hong Kong entrepreneur to set up a private limited company (Sdn Bhd) in Malaysia:
Initial Registration and Annual Fees
| Fee Items | Amount (RM) | Remarks |
| Company registration fee (one-off) | RM 1,010 | Government Fees |
| Company Secretary's Fee (per annum) | Market price fluctuation | Statutory Necessity |
| Registered address fee (per month) | Market price fluctuation | Virtual office address is also available |
| Nomination of directors' services (if required) | Market price fluctuation | Not required, but would be required if there were no qualified directors. |
| Bank account opening (one-time) | Market price fluctuation | - |
Follow-up Maintenance Costs
| Fee Items | Annual fee (RM) | Remarks |
| Financial Annual Report Fee | Market price fluctuation | - |
| Accounting Services | Market price fluctuation | Depends on business complexity |
| Audit Services | Depends on business scale | Annual audits are required for revenues exceeding RM5 million. |
Introduction to the Malaysian Tax System
- Corporate Income Tax (CIT): For companies with capital of less than RM2.5 million, the tax rates are 17%-24%, while companies with capital of more than RM2.5 million are subject to the unified rate of 24%. SMEs are entitled to a preferential rate of 17% on their first RM600,000 of taxable income.
- Sales and Service Tax (SST): The rate of sales tax is generally 101 TP3T and service tax is 61 TP3T.
- Withholding Tax: Withholding tax on services purchased from non-Malaysian individuals or companies at rates ranging from 3-25%.
VII. Special Attention for Hong Kong People
MM2H Visa and Company Opening
Holding Malaysia"Second Home Ownership Scheme(MM2H) visa holders from Hong Kong can register a private limited company in Malaysia as a director and sole shareholder. The entire registration process usually takes onlyOne to two weeks.。
Although the MM2H program has restrictions on employment, it does not prevent you from running your own business as a company director.
Industry restrictions to be aware of
Not all industries are allowed100% Foreign HoldingsThe Certain industries such asEducation, tourism, agriculture and financeIn addition, the Government requires Malaysian nationals to hold a minimum of50% Shares。
Also.Foreigners cannot operate part of the businessThe business is not only for the businessmen, but also for those who want to start their own business, such as supermarkets, clothing stores, hair salons, laundromats, and so on. Before planning to start a business, you should check the latest policies of your local government to avoid unnecessary losses.
VIII. Necessary Procedures and Continuing Compliance after Starting a Company
- Applying for a Business License: All companies need to apply for a business license from the local government where they operate.
- Opening a company bank account: you need to prepare the certificate of incorporation, identification documents of directors and shareholders.
- Employee Provident Fund (EPF) enrollment: must be completed within 7 days of hiring your first employee.
- Social Security (SOCSO) registration: Completed within 30 days of the employee's arrival date.
- Tax Registration: Register your tax number with the Malaysian Landlord and Directorate of Revenue (LHDN).
After incorporation, the following compliance requirements should also be noted:
- Display of company name and registration number at the company's registered address and place of business
- Appointment of company secretary (if not appointed on incorporation, within 30 days of incorporation)
- Submission of financial statements within the required deadline
- Submit an annual return to SSM within 30 days of the registration anniversary date each year
Answers to Frequently Asked Questions
1. Is it possible to immigrate to Malaysia to set up a company?
You can't immigrate directly from Malaysia by opening a company, but you can immigrate through the"Second Home Program (MM2H)The MM2H program allows applicants to reside in Malaysia for a long period of time and operate a business there.
2. Do I have to move to Malaysia to start a business?
Not necessarily. The main requirement for opening a company is to appoint at least one director who is legally resident in Malaysia. If you are not personally relocating to Malaysia, you may employ"Nomination of Resident DirectorThe service is provided by the Government of the Hong Kong Special Administrative Region (HKSAR).
3. Is an annual audit required for a Malaysian company?
An annual audit is required for companies with annual revenue exceeding RM5 million. Newly incorporated companies are required to appoint an auditor at least 30 days before the end of the deadline for submitting their first financial statements to CCM.
4. how long does it take to set up a company in Malaysia?
The complete process of setting up a private limited company (Sdn Bhd) usually requires the following1-2 WeeksThe process may be shortened if it is done through an agent. It is possible to shorten the processing time if it is done through an agent.
5. What are the main fees for foreigners to register a company in Malaysia?
For foreigners, the main fees for registering a Malaysian company include: company registration fee (one-time) RM 1,010, company secretarial fee (per annum)Market price fluctuationRegistered address fee (per month)Market price fluctuationetc. In the case of foreign company registration, the fee is based on the share capital and is RM5,000 for a company with a share capital of not more than RM1 million.
X. Conclusion and Practical Recommendations
For Hong Kong entrepreneurs, setting up a company in Malaysia is, on the whole, a very difficult task.Quite a cost-effective optionThe initial registration fee is relatively low. The relatively low initial registration fees and the advantageous operating costs over Hong Kong, together with the policy incentives and strategic geographical location, are advantages that cannot be ignored.
Budget Planning Recommendations:
- Provide at least HKD 20,000-30,000 as initial set-up capital.
- Reserve HKD 10,000-15,000 per year for basic maintenance costs.
- Consider an additional HKD 5,000-10,000 to meet unexpected compliance needs.
Success Key:
- Understand industry restrictions and capital requirements in advance
- Choosing a reliable local partner or agency
- Ensure compliance and complete annual reporting on time
- Utilizing Malaysia as a gateway to the Southeast Asian market
More Services
Company Formation Services
Tax Services
Company Secretary
Virtual Office
[M&N Professional Services]
M&N has extensive experience and specializes in assisting Hong Kong entrepreneurs to successfully set up their companies in Malaysia. Our services include:
- Free Consultation: One-on-one assessment of your business needs by professional consultants
- One-stop service from company name reservation to bank account opening.
- Follow-up support: company secretary, accounting and auditing, tax filing support throughout the year
Just leave your contact informationFree consultation with professional consultants and obtain the latest fee schedule for company formation in Malaysia.。
Disclaimer
This article has been compiled by M&N to provide general guidance based on publicly available information and statutory provisions only. The information contained herein should not be regarded as legal or other professional advice. M&N accepts no liability for any action taken or loss incurred as a result of reliance on the contents of this document. As legislation is amended from time to time, it is important to refer to the latest official regulations or seek independent professional advice in dealing with specific cases.
