What is the Minimum Paid-up Capital for a Foreign Company in Malaysia
- Chow Ping
- Oct 3
- 4 min read
Updated: Oct 30
RM 1 (USD 0.2377). Same as the locals.
End of stor-
Wait! There’s more!
Yes, RM 1 is the minimum paid-up capital required for a foreign entity to incorporate a company.
But it’s highly unlikely that a bank would offer you a loan if your startup capital is just RM 1.
A more realistic figure is at RM2,500 (USD 594.40) and above.
But that’s just the initial step.
Because to actually operate in certain sectors, foreign companies are required to meet higher paid-up capital requirements.
They are as follows:
RM500,000 minimum for advisory, consultancy, and some service sectors.
RM1 million or more for trading, import-export, financial services, and companies applying for Employment Passes.
RM2.5 million for manufacturing companies.
Even higher capital thresholds apply for restricted sectors like banking, telecommunications, and education.
Now that we’ve covered that, let’s talk about who’s eligible to open a company in Malaysia.
Requirements to open a company in Malaysia
The eligibility requirements are as follows.
Do? You? Make? The? Cut?
Drumroll
Requirements | Notes |
Be at least 18 years old | |
Have a Malaysian resident director | This can be a… • Malaysian citizen • Permanent resident • Foreigner with valid work permit Pro tip: Many foreign investors use a local nominee director while keeping full shareholder control |
Directors must be clean | No bankruptcy or criminal record. |
Get a registered Malaysian address | This can be a physical or virtual office address. |
Appoint a company secretary within 30 days | This part is important. Click HERE for a crash course on everything you need to know about hiring a company secretary in Malaysia |
How to register your business — for a foreign company in Malaysia
If you’re eligible to incorporate a company in Malaysia, congratulations!
Now comes the next part — actually incorporating your business.
There are two methods to do this. We’ll cover them in…
3…
2…
1…
Method 1: DIY Company Registration via MyCOID
This approach is cost-effective and gives you complete control over the process. Just be prepared to spend some time figuring things out.
The four essential steps of DIY company registration:
Step 1: Conduct Your Business Name Search | Start by logging into SSM's MyCOID portal.
This is where you'll test potential business names. Get creative with your options, but make sure they comply with SSM's naming guidelines. Avoid prohibited or sensitive words as outlined in their official guidelines. Note: Each name search costs RM50 and remains valid for 30 days, so choose wisely. |
Step 2: Prepare Your Registration Documents | Gather these essential documents and information: • Company constitution - You can use SSM's standard template
• Directors and shareholder details - Include full names, NRIC/passport numbers, addresses, and shareholding percentages • Completed Declaration of Compliance (Form 6) • Registered business address and MSIC code - This indicates your business nature |
Step 3: Submit Your Incorporation Application | Return to the MyCOID portal to submit your application. Fill in all required details carefully and upload your prepared documents. The incorporation fees start from RM1,010. |
Step 4: Receive Your Registration Certificate | Once approved, you'll receive a Notice of Registration (Section 15) as official proof of incorporation. If you need additional documentation for licenses or legal requirements, you can request a Certificate of Incorporation (Section 17) for an additional fee. |
Here's a helpful video walkthrough of the entire process:
Method 2: Professional Company Incorporation Services
Your time is precious. Don’t spend precious hours on paperwork.
You’re better off working on your business, building relationships and forming strategies.
At Douglas Loh & Associates, we’ll collect the information from you and handle the entire registration process.
On top of that, we’ll help you with the hard part that comes afterwards, the post-incorporation process.
A guide to your company's post-incorporation process in Malaysia
If you're a foreign company in Malaysia, incorporating your business is just the beginning.
The part that comes after that can cost you lots of misery if you don’t get it right.
Here’s what you need to do next:
What to do after you register your company with SSM
Step 1: Engage corporate secretary services
Also known as a company secretary, or cosec. You have to do this step within 30 days of incorporation.
Hiring a company secretary is not optional.
What is a company secretary, you ask?
Watch this video to find out:
Step 2: Open a corporate bank account
At least one director must be present during the process.
Remember to have these documents handy:
• SSM incorporation papers
• director’s identification
• board resolution
Step 3: Register for tax & statutory contributions
There are 6 items you must register for:
• LHDN registration — Obtain a tax reference number & submit CP204 (Tax Estimate) within 3 months
• SST registration — Mandatory for businesses earning RM500,000+ annually
• EPF (if you hire employees)
• SOCSO (if you hire employees)
• PCB (if you hire employees)
• Businesses licenses & permits — F&B outlets need business premise license, construction businesses need CIDB certification, etc
Sounds like a lot? Fortunately, you’ve got an experienced firm to help you with every one of those needs. I’m talking about us! Douglas Loh & Associates!
We’ll ensure that you’re compliant with all the laws and requirements of the Malaysian government.
Ready to register your company in Malaysia the headache-free way?
We will take care of everything for you — from incorporating your company, carrying out the post-incorporation tasks, and connecting you with the right people along the way.
Book a free consultancy call now to find out more.
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