Effortlessly incorporate and manage your company in Malaysia with Vepapu—offering all-in-one services from registration to compliance, banking, and visa support.
.webp)
Unlock Growth Opportunities in an Emerging Market
Reduced operational costs, including labour, rent, & overheads.
Simplified compliance requirements and regulatory processes.
A large and young population provides a dynamic workforce.
Allows for foreign shareholding up to 100% in the company.
Everything You Need for Seamless Company Formation
Experience seamless company formation from anywhere with Vepapu. Our digital incorporation services ensure you can register your company online without the need to travel or submit paperwork in person.
We guide you through each step of the process, ensuring compliance with local regulations and providing support for any incorporation-related queries.
.webp)
.webp)
Meet the local requirements online with Vepapu. Having a local registered office address is mandatory for your company's registration and we will help you meet this requirement. We will receive, scan, and email you if any mail is received from the authorities at your address.
You can also build a physical presence in the country by opting for our nominee director services, who will act as your company's director while you retain total control over your company.
You can capitalise on our strong banking relationships with traditional banks as well as digital-first banking providers.
You would need to physically visit the bank's location if you opt for a traditional brick-and-mortar bank, while modern digital banking providers welcome you with an online onboarding process.
.webp)
.webp)
Leverage Vepapu’s expertise to navigate the visa application process for your business needs. Whether you require work visas for your team or investor visas to secure your investment rights, we facilitate the entire process.
Our services include comprehensive guidance on meeting eligibility criteria, preparing necessary documentation, and submitting applications efficiently to minimize wait times and complications.
.svg)
Mandatory documents and information required for your company formation
A certified true copy (scanned version) of the passport (valid for at least 6 months)
A comprehensive Curriculum Vitae (C.V.), Resumé, or Linkedin profile.
One of the scanned copies of a bank reference, bank statement, Utility bill, or Driver license.
It should clearly show the holder's full name along with a physical address written in English (P.O. Box addresses are not accepted).
It must be the most recent version and dated within the last 3 months.
Please provide us with certified true copy (scanned version) of the following company documents:
Certificate of Incorporation
Memorandum and Articles of Association / Constitution
Register of Director
Register of Shareholder / UBO
Extract of the company’s details from the Registrar of Companies, which can include any of the following: Business Profile / Certificate of Incumbency / Certificate of Good standing (valid for within 6 months if any).
All members of the corporation, including Directors, Shareholders, Ultimate Beneficial Owners (UBOs), and Contact persons, must provide identity and address proofs as mentioned above.
From Paperwork to Approval: Making Company Formation Fast and Straightforward
Click here and fill out the short form to let us know your requirements.
Afterwards, our team will get in touch with you to guide you through the process.
Begin the company incorporation process by sharing the requested documents, as listed here. This enables us to begin the mandatory KYC and due diligence procedures to comply with local and international laws.
During the process of due diligence, our team might request additional information, documents, or clarification as needed.
If you ever feel lost while organising the documents, please contact us, as your dedicated manager from Vepapu will guide you through it.
Our team will now have the required information and documentation in hand to proceed with completing the required paperwork involved in incorporating your company.
We will complete one or multiple application forms as required and coordinate with the registry to submit them for their official approval.
We will do timely follow-ups with the registry and actively work with them if they require any further clarification or documentation before their approval.
If there are any other registrations with different government departments that are generally required before commencement of any business, required for your specific business industry, or that you have chosen voluntarily, we will promptly complete them.
As Vepapu strongly believes that company incorporation is just the first step in any business journey, we will accompany you throughout your business's life cycle by keeping it in good standing with local rules and regulations.
We will take care of monthly, quarterly, bi-annual, or annual reports and return filings with the authorities. We will timely inform you of the upcoming compliance deadlines, such as conducting an annual general meeting, for your prompt action.
Get in touch and ask us anything. We'd love to help.
.webp)
A Sdn. Bhd. is the most common business structure in Malaysia, allowing limited liability for its shareholders. Foreigners can own up to 100% of the company, depending on the industry, and it requires at least one resident director. This entity is a separate legal entity, meaning it can own property, enter into contracts, and sue or be sued in its own name.
An LLP combines the flexibility of a partnership with the limited liability benefits of a private limited company. It is a separate legal entity from its partners, who are only liable up to their agreed contribution. This structure is typically used by professionals or small businesses and has fewer compliance requirements compared to a Sdn. Bhd.
A branch office is an extension of a foreign company in Malaysia, allowing the parent company to conduct business in the country. It is not a separate legal entity, meaning the parent company is fully liable for its operations. Branch offices must adhere to local regulations and are subject to Malaysian corporate tax on income derived from local operations.
A representative office is established by a foreign company to conduct non-commercial activities, such as market research or promotional activities. It cannot engage in any profit-making activities and is therefore not subject to Malaysian taxation. This entity is often used as a temporary setup for exploring business opportunities before committing to a more permanent presence.
Yes, foreigners can incorporate a Private Limited Company (Sdn. Bhd.) in Malaysia, which is the most common business structure for foreign investors. This type of company allows for up to 100% foreign ownership in most sectors, although certain industries may have specific restrictions or require local partnerships. With recent regulatory reforms, Malaysia has made the incorporation process more accessible for foreign investors by simplifying procedures and offering incentives in key sectors. This has significantly enhanced the attractiveness of Malaysia as a business destination, particularly for those looking to establish a presence in Southeast Asia.
Foreigners who incorporate a Sdn. Bhd. in Malaysia enjoy the same benefits as domestic companies, including the ability to own and control their businesses fully. The Sdn. Bhd. structure also allows companies to sponsor employment passes for foreign employees, including the directors themselves, making it easier to bring in necessary expertise. The World Bank’s Doing Business Report highlights Malaysia's strong performance in ease of doing business, consistently ranking it among the top in the region. This, combined with a stable legal framework and pro-business government policies, makes Malaysia a highly appealing location for foreign entrepreneurs.
A Private Limited Company (Sdn. Bhd.) in Malaysia must have at least one director, and this director must be a resident in Malaysia. This requirement means the director should be either a Malaysian citizen or a foreigner with a valid residency permit. All directors must be natural persons, as corporate directors are not permitted under Malaysian law. While there is no restriction on the nationality of the directors, the residency requirement is strictly enforced. Nominee directors are allowed, but they too must fulfill the residency criteria.
A Sdn. Bhd. can be established with a minimum of one shareholder and can have up to a maximum of 50 shareholders. Shareholders can be either individuals or corporate entities, and there are no restrictions on their nationality. This allows for 100% foreign ownership in many sectors, although certain industries may have specific foreign ownership restrictions. The flexibility in shareholder structure makes the Sdn. Bhd. a popular choice for both local and foreign entrepreneurs. Shareholders’ liability is limited to the amount of their investment in the company, providing them with protection from the company’s debts and liabilities.
The appointment of a company secretary is mandatory for a Sdn. Bhd., and this must be done within 30 days of the company’s incorporation. The company secretary must be a resident of Malaysia and either be a member of a professional body recognized by the Malaysian government or licensed by the Companies Commission of Malaysia (SSM). The company secretary plays a crucial role in ensuring that the company complies with all regulatory requirements, including maintaining company records, filing annual returns, and ensuring adherence to the Companies Act 2016.
The minimum paid-up capital requirement for establishing a Sdn. Bhd. is just MYR 1, which is intended to make it easier for small businesses to incorporate. However, for foreign-owned companies, the required minimum paid-up capital is usually higher, often starting from MYR 500,000 to MYR 1 million, depending on the industry and nature of the business. This higher capital requirement for foreign entities is aimed at ensuring that the company has sufficient resources to operate in Malaysia. The paid-up capital represents the actual funds invested by the shareholders in the company and provides a measure of financial stability and commitment to the business.
A Sdn. Bhd. must have a registered office address in Malaysia, which serves as the official location for receiving communications and notices. This address must be a legitimate business location within Malaysia, although it can be a physical office or a virtual office, depending on the needs of the business. The registered office is where the company’s statutory records are kept and where official documents can be served.
To incorporate a company in Malaysia, you need to prepare and submit various documents. These documents are essential to comply with Malaysian regulations and ensure your business operates legally. The documents will be used in KYC due diligence procedures, application preparation, and document submission to the authorities.
The first step is reserving a unique company name with the Companies Commission of Malaysia (SSM). The name must comply with specific guidelines set by SSM, ensuring it is not identical or too similar to existing company names. Once approved, the name is reserved for 30 days, giving you time to complete the incorporation process.
Next, you need to prepare all necessary documents, including the company’s Constitution, which outlines the company’s rules and regulations. Other required details include information on directors, shareholders, and the registered office address. At least one director must be a resident of Malaysia, and the company must appoint a qualified company secretary within 30 days of incorporation. The company secretary plays a crucial role in maintaining statutory records and ensuring compliance with legal requirements.
Once your documents are ready, submit the incorporation application to SSM. This step involves filling out the necessary forms and providing all required information. If the submission meets all requirements, SSM will issue a Certificate of Incorporation. This certificate officially recognizes your company as a legal entity, allowing it to commence business activities.
After your company is incorporated, you must fulfill several post-incorporation requirements. This includes applying for relevant business licenses depending on your industry and registering for a tax identification number with the Inland Revenue Board of Malaysia (LHDN). You’ll also need to open a corporate bank account to manage your business finances. If you intend to hire employees, registration with the Employees Provident Fund (EPF) and the Social Security Organization (SOCSO) is mandatory.
For foreign-owned companies, certain sectors may require additional approvals or higher paid-up capital, which could extend the incorporation timeline. Moreover, some industries might require specific licenses before the company can legally operate, so it’s crucial to check the specific requirements for your business.
The overall process of incorporating a company in Malaysia generally takes between one and two weeks, though this can vary depending on the complexity of your business structure and the efficiency of document preparation. For foreign-owned entities, the process might take longer due to the additional steps involved.
After incorporating a company in Malaysia, there are several compliance requirements that must be met to ensure the business operates legally and efficiently. Here’s a breakdown of the key post-incorporation compliance obligations:
A company secretary must be appointed within 30 days of incorporation. This individual must be a Malaysian resident and a member of a recognized professional body, such as the Malaysian Institute of Accountants (MIA) or the Malaysian Association of Company Secretaries (MACS). The company secretary is responsible for maintaining statutory records, filing annual returns, and ensuring the company complies with the Companies Act.
The company must keep various statutory records and registers at its registered office, including the register of members, minutes of board meetings, and financial statements. These documents must be kept up-to-date and available for inspection by the relevant authorities.
Every company is required to hold an AGM within six months of its financial year-end. During the AGM, financial statements are presented, and any required resolutions are passed. For private companies, the AGM can be bypassed if all shareholders agree to a written resolution.
The company must file its annual returns with the Companies Commission of Malaysia (SSM) within 30 days of the anniversary of its incorporation. The annual return must include detailed information such as the company's registered office, the business activities, particulars of directors and shareholders, and a summary of the shareholding structure.
Companies in Malaysia must register for a tax file number with the Inland Revenue Board (IRB) and submit annual tax returns. Financial statements must be audited annually, and the audited accounts submitted along with the tax returns. It’s also important to stay compliant with Goods and Services Tax (GST) or Sales and Service Tax (SST), depending on the business activities.
Depending on the nature of the business, additional licenses and permits may be required. These could include sector-specific licenses, general business licenses, or activity-specific licenses. Ensuring these are obtained promptly is essential for lawful operations.
If the company hires employees, it must register with the Employees Provident Fund (EPF) and the Social Security Organization (SOCSO). This includes contributing to the employees’ retirement fund and ensuring they are covered under social security schemes.
The Employment Pass (EP) is designed for foreign professionals who take up high-level managerial, executive, or technical roles in Malaysian companies. The EP is categorized into three types based on salary and employment contract length:
Category I - For those earning above MYR 10,000 per month, with a contract of up to 5 years.
Category II - For those earning between MYR 5,000 and MYR 10,000 per month, with a contract of up to 2 years.
Category III - For those earning between MYR 3,000 and MYR 5,000 per month, with a contract of up to 12 months. This category is renewable up to two times.
The candidate must have relevant qualifications and experience in their field of work. The employing company must apply for the pass on behalf of the candidate. EP holders can bring their dependents (spouse and children) to Malaysia on a Dependent Pass and can also hire a foreign domestic helper.
The Professional Visit Pass (PVP) is for foreign nationals who are required to work in Malaysia on a temporary basis, typically for short-term projects, internships, or specialized technical assignments. The PVP is generally granted for a duration of up to 12 months and is non-renewable.
The applicant must be engaged by a foreign employer but working temporarily in Malaysia for a Malaysian company or institution. Common applicants include consultants, trainees, researchers, or technical experts. PVP holders are not considered employees of the Malaysian company; thus, they are not eligible for certain employee benefits such as EPF or SOCSO contributions.
The Dependent Pass (DP) is issued to the immediate family members (spouse and children under 18 years of age) of Employment Pass holders. The DP allows dependents to reside in Malaysia for the same duration as the principal Employment Pass holder.
The DP is applicable to the spouse and children of an EP holder. The DP is tied to the validity of the principal Employment Pass. While DP holders can reside in Malaysia, they are not allowed to work unless they obtain separate employment authorization, such as through a work permit or Employment Pass.
These visa options facilitate the mobility of foreign professionals and their families in Malaysia, ensuring that investors and skilled workers can contribute to the local economy while maintaining legal residency and work status.
When operating a Private Limited Company (Sdn. Bhd.) in Malaysia, there are several VAT and tax considerations:
The standard corporate income tax rate in Malaysia is 24%. However, for Sdn. Bhd. companies with a paid-up capital of MYR 2.5 million or less and annual sales below MYR 50 million, a reduced tax rate of 17% applies to the first MYR 600,000 of chargeable income, with the balance taxed at 24%.
Filing: Companies are required to file an annual tax return and pay taxes based on their chargeable income.
GST - Malaysia initially implemented the Goods and Services Tax (GST) in 2015, but it was replaced with the Sales and Service Tax (SST) in 2018.
SST - SST consists of two parts—Sales Tax and Service Tax. Sales Tax is levied on goods manufactured in or imported into Malaysia at rates of 5%, 10%, or a specific rate, depending on the goods. Service Tax is levied at a rate of 6% on certain prescribed services. Companies with taxable turnover exceeding MYR 500,000 must register for SST.
Withholding tax is applicable to certain payments made to non-residents, including royalties, interest, and technical service fees. Rates vary depending on the nature of the payment and any applicable Double Taxation Agreements (DTA).
Pioneer Status and Investment Tax Allowance: Malaysia offers various tax incentives, including Pioneer Status (income tax exemption) and Investment Tax Allowance, to encourage investment in specific industries or regions. Sdn. Bhd. companies may be eligible for these incentives based on their business activities.
