Malaysia has become a top gateway into Southeast Asia for foreign — especially Chinese — enterprises, thanks to its competitive tax regime, English-speaking environment and strong trade ties with China. This guide walks through the real-world sequence to get incorporated and operational.
Key facts
Most foreign investors choose a Sdn Bhd; 100% foreign ownership is allowed in most sectors; at least 1 director ordinarily resident in Malaysia; paid-up capital of RM500,000+ (services) or RM1,000,000 (trading/retail) is advisable if you need work passes; setup takes 5–10 working days, 4–8 weeks including licenses and passes.
Step 1 — Confirm your activity and licenses first
Manufacturing may need a MIDA manufacturing license (shareholders' funds ≥ RM2.5M or ≥75 employees); construction needs a CIDB license; foreign-owned wholesale/retail may need a WRT license. Confirm before designing your share structure.
Step 2 — Register the Sdn Bhd with SSM
Name approval → shareholding & director structure → incorporation documents → Notice of Registration → appoint a licensed company secretary within 30 days. See our Company Setup service.
Step 3 — Open a corporate bank account
Often the trickiest step for foreign-owned companies. Banks review shareholder background, business substance and paid-up capital; typically 2–4 weeks with proper preparation.
Step 4 — Apply for work passes (Employment Pass)
Note: minimum salary thresholds rose significantly effective 1 June 2026. Current thresholds:
| Category | Monthly salary | Validity |
|---|---|---|
| EP I | ≥ RM20,000 | up to 10 years |
| EP II | RM10,000–19,999 | up to 10 years (succession plan) |
| EP III | RM5,000–9,999 (manufacturing RM7,000–9,999) | up to 5 years |
Dependants can apply for a Dependant Pass. See our Visa service.
Step 5 — Tax registration and compliance
For qualifying SMEs: 15% on the first RM150,000, 17% on RM150,001–600,000, 24% above; plus SST, EPF/SOCSO/EIS and annual return & audit. See our Accounting & Tax service.
Ready to set up in Malaysia?
ONEKEY BIZ offers a free setup assessment — incorporation, licensing, visas and tax, all handled end-to-end.
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