How to Start a Private Limited Company in Malaysia

If you’re reading this, you’re probably trying to learn how to start a private limited company in Malaysia.

Preferably without losing your mind.

Well, your wish is our command.

Today, we’ll show you how to start a private limited company in Malaysia.

We’ll answer three questions:

1. What is a private limited company?

2. How to register a private limited company?

3. What to do after you register your private limited company? (deadly if you miss these)

   
   

Jeng jeng jeng. Here we go!

What is a private limited company?

A private limited company is also known as a Sendirian Berhad (or “Sdn Bhd” if you don’t like typing so many letters).

Essentially, it’s a separate legal entity that exists independently from its owners.

When you incorporate a private limited company, you're creating a distinct "person" in the eyes of the law.

One that can own assets, sign contracts, take on debt, and be held accountable for its actions, all without directly affecting you, the owner, personally.

If the company faces legal action or accumulates debt, your personal assets remain protected. Nobody can touch your home, savings, and other property.

The company's liabilities stay with the company.

A Sdn Bhd provides a protective barrier and tax planning opportunities.

But at the same time, it demands more time, money, and administrative effort to maintain.

This is unlike a sole proprietorship, which offers no such legal separation between you and your business.

In a sole proprietorship, you are the business. Every debt it owes becomes your debt, every lawsuit it faces names you personally, and all its profits are taxed as your personal income.

It's simpler and cheaper to run, sure, but you’re also one bad day away from losing your entire Pokémon card collection.

How to register a private limited company in Malaysia

As you can see, it’s safer for your assets and Pokémon cards to register your business as a private limited company.

You can register your company yourself through SSM's MyCOID portal. It's budget-friendly and straightforward.

You just need patience for a bit of paperwork and government procedures.

Here's how it works:

Step 1: Search for your company name

Head over to SSM's MyCOID portal and start brainstorming company names. You'll test them here to see if they're available.

Be creative, but stay within SSM's naming rules.

Certain words are off-limits or require special approval. Check the official SSM naming guidelines here.

Each name search costs RM50 and stays valid for 30 days, so pick carefully.

Step 2: Get your documents ready

You'll need to compile several items before submitting your application.

First, prepare your company constitution. SSM provides a standard template you can use.

Next, gather complete details for all directors and shareholders: full names, NRIC or passport numbers, residential addresses, and how the shares will be divided.

You'll also need to fill out a Declaration of Compliance using Form 6.

Finally, have your registered business address ready and identify your MSIC code, which categorizes your business activity. 

Step 3: File your incorporation application

Go back to the MyCOID portal and complete your incorporation application.

Fill out every field carefully and upload all your prepared documents. The filing fee starts at RM1,010.

Step 4: Get your certificate

After SSM reviews and approves your application, you'll receive a Notice of Registration (Section 15) confirming your company is officially incorporated.

If you need formal certification for licensing purposes or legal matters, you can request a Certificate of Incorporation (Section 17) for an extra fee.

Need a visual guide? Here's a video that walks through the entire process:

The easier way? Let Douglas Loh & Associates handle it all for you.

Honestly? Company registration involves a lot of form-filling, document-chasing, and back-and-forth with government portals.

If that sounds about as fun as watching paint dry, we can take it off your plate entirely.

At Douglas Loh & Associates, we'll gather the necessary information from you and manage the entire registration from start to finish.

Better yet, we'll guide you through everything that comes after incorporation (more on that later).

Just note that it’s A LOT of stuff that can go really wrong if you’re not careful.

You focus on building your business. We'll handle the paperwork.

The four things to do after you register your private limited company

Getting your company registered is just the starting line.

The real work begins immediately after. And this is where things can get expensive and messy if you're not careful.

Let's just say LHDN doesn't take kindly to businesses that "forget" their obligations.

Here's your roadmap for what comes next:

Step 1: Hire a company secretary

You've got 30 days from your incorporation date to get this done. Non-negotiable.

Think of your newly-formed company as a newborn. It needs someone looking out for it, making sure it doesn't stumble into legal trouble.

That's what a company secretary does.

What exactly does a company secretary do? This video breaks it down:

Step 2: Set Up a Business Bank Account

You'll need at least one director physically present when opening the account.

Bring these documents:

• Your SSM incorporation documents

• Director's identification documents

• A board resolution authorizing the account opening

  
  

Step 3: Complete Your Tax and Statutory Registrations

There are six registrations you need to complete:

• LHDN tax registration — Get your tax reference number and file Form CP204 (your tax estimate) within 3 months

• SST registration — Required if your annual revenue hits RM500,000 or more

• EPF registration (once you bring employees on board)

• SOCSO registration (once you bring employees on board)

• PCB registration (once you bring employees on board)

• Industry-specific licenses

• 
  

Feeling overwhelmed yet? That's completely normal. The good news is that Douglas Loh & Associates specialises in handling exactly these types of requirements.

We make sure you tick every box the Malaysian government requires, so you can sleep soundly at night.

Take note, though, that post-incorporation tasks are just phase one.

Because once you've set everything up, you enter phase two: ongoing compliance.

Every single year, your Sdn Bhd must fulfill six mandatory compliance obligations.

Six annual compliance requirements for every private limited company in Malaysia

1/ SSM Annual Returns - Due within 30 days of your company's anniversary date

2/ Audited Financial Statements - Required within 18 months of incorporation for your first year, then annually after that

3/ LHDN Tax Returns - Due by June 30 each year (if your financial year closes on December 31)

4/ SST Compliance (where applicable) - Filed every two months if you're SST-registered

5/ Employee Statutory Deductions - Must be paid monthly by the 15th for EPF, SOCSO, and PCB

6/ Annual General Meetings - Held as required by your company constitution

Missing these deadlines isn't an option.

LHDN especially doesn't mess around. If they suspect unpaid taxes, they'll come after you faster than you can say "Pokémon".

They are legal requirements you must complete.

And yet, dealing with compliance paperwork is honestly one of the worst uses of your time as a business owner.

You should be strategising growth. Networking with potential clients. Leading your team.

Not drowning in forms and government portals.

That's exactly why Douglas Loh & Associates exists.

We handle your company registration and manage all your compliance requirements year-round.

Want to get started? Book your free consultation today.

Click here if you're Malaysian.

Click here if you're non-Malaysian.