Company Types in Malaysia
Explore information about the main company types in Malaysia and then access our online services to benefit from support and guidance from our team.
Are you interested in the types of companies available in Malaysia before starting a business? You may explore the following lines and also check our online services to get support. Our Malaysian agents are at your disposal for company formation in Malaysia, regardless of the selected structure.
| Quick Facts | |
|---|---|
| Who can start companies in Malaysia? | Local and foreign entrepreneurs willing to develop economic operations in Malaysia |
Types of companies available in Malaysia | – private and public limited liability company, – sole proprietorship, – general or limited partnership, – branch office, – subsidiary, etc. |
Most common business structure | Private limited liability company (Sdn Bhd) |
| Legislation | Companies Act 2016 (sole proprietorships and partnerships: Registration of Businesses Act 1956; LLPs: Limited Liability Partnerships Act 2012) |
| Authority in charge of business registration | Companies Commission in Malaysia |
| Minimum share capital for Malaysian LLC | RM 1 |
| Features of a public limited company in Malaysia (Bhd) | – can be limited by shares or by guarantee, – can have a single member but needs at least 2 directors, – may be, but need not be, listed on Bursa Malaysia. |
| The most important document for company formation in Malaysia | Articles of Association |
| Can I open a representative office in Malaysia? | Yes, this entity is also known as a liaison office. |
| Partnerships in Malaysia | Can be settled by 2 or more owners, but no more than 20. |
| Sole proprietorships in Malaysia | The simplest business form available. Can be set up only by Malaysian citizens or permanent residents. |
| Can other corporate entities open companies in Malaysia? (YES/NO) | YES |
| Are shelf companies available in Malaysia? | Yes. One of our Malaysian agents can help you purchase a ready-made company. |
| Unlimited company in Malaysia (Sdn) | A proper business option in Malaysia. Shareholders are directly responsible for the firm’s debts. |
| Choosing our agents in Malaysia | We assist entrepreneurs with opening companies in Malaysia, registering for taxation, opening a bank account, applying for a business license, registering for a trademark, and many more. Complete services at affordable prices. |
What are the main types of companies/entities in Malaysia?
- Public & private limited liability companies,
- Limited liability partnerships,
- Company limited by guarantee,
- Sole proprietorship,
- General partnership, etc.
Is a local business partner needed to open a company in Malaysia?
No.
What is the most popular entity in Malaysia?
The Private Limited Company – Sdn Bhd.
What is the minimum share capital required?
RM 1, but shareholders can deposit more.
Where do I register a company in Malaysia?
At the Companies Commission of Malaysia – SSM.
In case you would like to start a company in an offshore jurisdiction such as the Isle of Man, you should know that two types of companies can be opened by foreign investors here: 1931 Act Companies – Public and Private and 2006 Act Companies. For reliable company registration services in the Isle of Man, we recommend our local partners – IsleofManCompanyFormation.com.
Are holding companies available in Malaysia?
Yes, read our article here.
How can I open a branch in Malaysia? What about a subsidiary?
Is a representative office a business option in Malaysia?
Yes, this is the liaison office. Read here the details about registration of this structure.
What are the general conditions to open a private LLC in Malaysia?
- at least one shareholder can set up this structure,
- check and reserve the desired business name (RM 50 is the application fee),
- one must ensure a registered business office in Malaysia,
- the Articles and Memorandum of Association must be drafted,
- shareholders must appoint a licensed company secretary,
- a corporate bank account is needed,
- application for a business license is mandatory.
NOTES:
- opening a bank account for a business in Malaysia requires physical verification from the company managers/directors,
- around RM 1,000 is the government fee for company incorporation, paid to the SSM.
If you need to set up a company in another country, such as Saudi Arabia, we can put you in touch with our local partners.
If you need to open a company in South Korea or another country, we can put you in touch with our local specialists.
The video below offers a short presentation on the types of companies that can be registered in Malaysia:
What is the time frame to open a company in Malaysia?
It takes around 4-8 weeks to be fully operational after incorporation.
Are there any precautions when opening a company in Malaysia?
- entities without an appointed company secretary cannot start activities in Malaysia. Severe fines can be imposed,
- a company in Malaysia must have at least one resident director,
- make sure that foreign workers in a company established in Malaysia must have the proper work permit.
Persons who need to receive more details on the legal entities available in Malaysia are welcome to contact our team of company formation consultants. Our representatives can assist investors in opening a company in Malaysia and may also advise on the tax regulations applicable to each company type available here. We can also help you with company incorporation in Sweden.
Krithiga Anantha Rao, CPA · 5 October 2026