Starting a Business - Malaysia

100% foreign equity is generally permitted for a Sdn Bhd, including manufacturing (since June 2003) and most service sub-sectors; certain regulated sectors (telecoms, oil & gas, distributive/retail trade, financial services, utilities) carry equity conditions or require regulator approval.

There is no statutory minimum paid-up capital to incorporate a Sdn Bhd (RM1 is sufficient under the Companies Act 2016). Higher floors apply only to specific licences/permits, not to incorporation itself.

Every company must have at least one director who ordinarily resides in Malaysia (a principal residential address there; need not be a citizen or shareholder) and must appoint a qualified, SSM-licensed company secretary plus a registered office in Malaysia.

Core steps: reserve/approve a company name via SSM, appoint at least one resident director and one shareholder (can be the same person) plus a company secretary, lodge the incorporation (Superform) and constitution with SSM, and obtain the notice of registration. Approval typically takes 1-3 working days when documents are complete.

Companies more than 50% foreign-owned that engage in wholesale or retail trade must obtain a WRT licence from KPDN, which requires minimum paid-up capital of RM1 million (far higher for hypermarkets) and is applied for via the BLESS portal under the 2020 distributive-trade guidelines.

Under the Industrial Coordination Act 1975, a manufacturing operation needs a licence (and MIDA approval) once shareholders' funds reach RM2.5 million or it employs 75 or more full-time staff; 100% foreign equity is allowed for licensed manufacturers.