A Sendirian Berhad (Sdn Bhd) is the entity most foreign investors use to enter Malaysia — and in most sectors you can own 100% of it. Here are the 2026 requirements, costs and a realistic timeline for registering a Malaysian private limited company as a foreigner.
Can a foreigner own 100%?
Yes. A Sdn Bhd is incorporated under the Companies Act 2016 and supervised by the Companies Commission of Malaysia (SSM), and most industries allow 100% foreign ownership. A few sectors — certain financial services, defence-related activities, and land ownership — may require local equity participation, so always confirm your specific activity.
The 2026 requirements checklist
| Requirement | Detail |
|---|---|
| Directors | At least 1; at least one director must ordinarily reside in Malaysia (citizen, PR, or EP/PVP holder with a Malaysian address). |
| Shareholders | At least 1. The same person can be both director and shareholder. |
| Registered address | A physical Malaysian address for official notices and statutory records. |
| Company secretary | A licensed secretary with a valid SSM practising certificate, appointed within 30 days of incorporation. |
| Paid-up capital | From RM1 in theory, but 100% foreign-owned companies typically need RM500,000 (advisory/consultancy) or RM1 million (import, export, trading, restaurant) to obtain relevant licences and work passes. |
The resident-director question
This is the single biggest practical hurdle for foreign founders: you need at least one director who ordinarily resides in Malaysia before you have an Employment Pass — and you need a company before you can apply for an EP. Most foreign entrepreneurs solve this with a nominee resident director arrangement during setup, then transition once their own EP is approved.
How long does it take?
- Name search & reservation — same day to a few days via MyCoID.
- Incorporation — SSM typically processes complete applications in 1–3 working days.
- Realistic end-to-end — from kickoff to Certificate of Incorporation, usually 5–10 working days once documents and digital signatures are ready.
Opening a corporate bank account and applying for licences or Employment Passes happens after incorporation and adds several more weeks.
The typical setup sequence
- Confirm your business activity and whether 100% foreign ownership applies;
- Reserve the company name and decide paid-up capital based on your licensing/visa goals;
- Appoint a licensed company secretary and a resident director;
- Incorporate via MyCoID with digital signatures;
- Open a corporate bank account, then proceed to licences, e-Invoice setup and Employment Passes.
ONEKEY BIZ handles the whole sequence — name search, resident-director arrangement, licensed company secretary, incorporation, bank account and onward licensing — for foreign founders, with Mandarin and English support. Get a fixed-fee quote or explore our incorporation services.
Frequently asked questions
Can a foreigner own 100% of a Malaysian Sdn Bhd?
Yes, in most sectors. A few — certain financial services, defence-related activities and land ownership — may require local equity, so confirm your specific activity.
Do I need a Malaysian resident director?
Yes. At least one director must ordinarily reside in Malaysia (citizen, PR, or EP/PVP holder with a local address). Many founders use a nominee resident director during setup, then transition after their own EP is approved.
How long does Sdn Bhd registration take?
SSM typically processes complete applications in 1–3 working days; end to end (name search to Certificate of Incorporation) is usually 5–10 working days once documents and digital signatures are ready.
Sources & references
This article is general information only, not legal, tax or immigration advice. Policies, thresholds and official fees are set by the relevant Malaysian authorities and may change. Talk to our consultants about your specific situation.