Malaysia — Complete Business Setup & Migration Guide

 

Overview

Malaysia offers a strategic location in ASEAN, low operating costs, and competitive tax rates. Through Silicon Mappers, you can set up a mainland Sdn. Bhd., Labuan international company, or Representative Office, and explore work/residency options including MM2H and sector-specific passes.

 

Business Structures

• Sdn. Bhd. (Private Limited) – Most common form; requires 1 resident director.
• Labuan Company – Attractive for international trade; separate regulatory regime.
• Representative Office (RO) – Non-trading, for market research & liaison.

 

Step-by-Step Setup Process (Sdn. Bhd.)

1. Name Search & Reservation (via SSM).
2. Appoint Directors/Shareholders – At least 1 Malaysian resident director.
3. Draft Constitution (optional; can use SSM standard).
4. Incorporation Filing with SSM – Pay registration fee.
5. Obtain Certificate of Incorporation.
6. Bank Account Opening – In-person KYC usually required.
7. Tax & SST Registration – If turnover meets threshold.
8. Licensing – Local authority, sector-specific permits.

 

Document Requirements

Individual Shareholders/Directors

• Passport (foreigners) / Malaysian IC (locals)
• Proof of residential address
• CV/experience profile

Corporate Shareholders

• Incorporation docs
• Board resolution
• Proof of good standing
• All legalized/apostilled if foreign

Company Details

• Proposed names
• Business activity codes
• Registered office address

 

Migration / Visa Pathways

• Employment Pass (EP) – For company owners/managers.
• MM2H – Long-term residency for qualified investors/retirees.
• Labuan Work Visa – Linked to Labuan company ownership.
• Digital Nomad Visa – For tech/remote professionals (criteria apply).

 

Timeline

• Sdn. Bhd. incorporation: 3–10 days.
• Bank account: 2–6 weeks.
• Visa passes: 1–3 months.

 

Extended FAQ

Do I need a local director?
Yes, for Sdn. Bhd., at least one resident director.
 

Is Labuan tax-free?
Labuan companies enjoy low tax rates but must meet substance requirements.
 

Can foreigners own 100%?
Yes, except in certain restricted activities.