Bangga Malaysia
2026 Edition · Sdn Bhd Incorporation

Sdn Bhd — Malaysia's local company, set up for you from KL

Sdn Bhd (Sendirian Berhad) is Malaysia's private limited company. 100% foreign ownership, minimum capital RM 1, one director and one shareholder are enough. We handle name search, SSM registration, constitution, banking, tax registration and the Employment Pass.

17% / 24%corporate tax (SME / standard)
7–10 daysSSM registration
RM 1minimum capital (see EP note)
100%foreign ownership possible

Corporate tax — the tiered SME structure

Chargeable incomeSME rateNon-SME rate
First RM 150,00015%24%
RM 150,001 – 600,00017%24%
Above RM 600,00024%24%
SME relief has 4 cumulative conditions: paid-up capital ≤ RM 2.5M; gross business income ≤ RM 50M; no related company above RM 2.5M holding >50%; and foreign ownership below 20% (added from YA 2024, Finance Act 2023). A 100% foreign-owned Sdn Bhd is therefore taxed at a flat 24%. Sources: LHDN Public Ruling 12/2024, Finance Act 2023 (Act 851).

Paid-up capital needed for an Employment Pass

You can incorporate from RM 1, but to sponsor an Employment Pass the company must show paid-up capital of:

Ownership structureRequired paid-up capital
100% Malaysian-ownedRM 250,000
Joint venture (e.g. JP 70% + MY 30%)RM 350,000
100% foreign-ownedRM 500,000
WRT sectors (wholesale/retail/trade) with ≥51% foreignRM 1,000,000

The most common pattern for founders relocating to Malaysia: 100% foreign-owned + RM 500,000 paid in after incorporation. Sources: ESD MOHA Operational Guidelines / Announcement 266.

Our Sdn Bhd package

Incorporation

Name search, SSM registration, constitution, director/shareholder setup, tax file registration, bank account support.

¥660,000 tax-inclusive (¥600,000 excl. Japanese consumption tax)

Annual maintenance (choose one of 3 tiers)

Company secretary, registered address, annual filing and bookkeeping included in every tier: Light (dormant–very small) / Standard (revenue up to ~RM 500K) / Premium (larger, monthly reporting).

¥330,000 / ¥495,000 / ¥990,000 per year, tax-inclusive

Nominee resident director

Malaysia requires at least one director ordinarily resident in Malaysia. If no EP holder is available, we provide a nominee resident director.

¥550,000/year + refundable deposit ¥200,000

Employment Pass

Free route assessment before you sign (MDEC or ESD), then full application support. See the EP guide.

¥880,000 / ¥990,000 MDEC route / ESD route, tax-inclusive

FAQ

Can I incorporate without living in Malaysia?

Yes — incorporation itself has no residence requirement (a virtual office can serve as the registered address). Bank account opening and the Employment Pass do require in-person steps and real operations.

How long until the company is operational?

Incorporation 2–4 weeks + bank account 2–4 weeks ≈ 1–2 months for basic operations; add the EP and plan for 3–4 months in total.

Sdn Bhd or Labuan — which should I choose?

Selling into Malaysia (retail, F&B, local services) → Sdn Bhd. International trade, services or holding at a low rate → Labuan. Many clients combine both. Try the 3-minute assessment.

Can my Japanese company own the Sdn Bhd?

Yes, a 100% subsidiary is possible. We help design the capital and dividend flows together with partner tax accountants.

Start with a free 30-minute consultation

Tell us about your plans for your Sdn Bhd. English and Japanese support, from our Kuala Lumpur office.