Starting a Business in Malaysia: A Complete Guide

March 7, 2025 By Shabab Al Sharif

Malaysia is one of the most business-friendly countries in Southeast Asia, offering numerous opportunities for entrepreneurs. With a strong economy, strategic location, and supportive government policies, starting a business in Malaysia can be a great investment. This article will guide you through the essential steps, requirements, and benefits of doing business in Malaysia.

Why Start a Business in Malaysia?

Strategic Location – Gateway to ASEAN markets
Business-Friendly Environment – Low tax rates & pro-investment policies
Strong Economy – Diversified industries & skilled workforce
Ease of Doing Business – Simple company registration & digital processes
Government Incentives – Grants, tax benefits & SME support programs


Steps to Register a Business in Malaysia

1️⃣ Choose Your Business Structure
Malaysia offers several business structures, including:
🔹 Sole Proprietorship
🔹 Partnership
🔹 Private Limited Company (Sdn Bhd)
🔹 Limited Liability Partnership (LLP)

2️⃣ Register with SSM (Suruhanjaya Syarikat Malaysia)
🔹 Apply for company registration through MyCoID online portal
🔹 Provide business name, nature of business, and details of owners
🔹 Pay the necessary fees

3️⃣ Obtain Business Licenses & Permits
Depending on your business type, you may need:
🔹 Trade license from local authorities (e.g., MBSJ for Subang Jaya)
🔹 Work permits for foreign entrepreneurs (MTEP, Employment Pass)
🔹 Halal certification (for food & beverage businesses)

4️⃣ Open a Business Bank Account
A corporate bank account is required for financial transactions. You will need:
🔹 SSM registration documents
🔹 Business license
🔹 Identification documents

5️⃣ Tax & Compliance
🔹 Register for tax with LHDN (Inland Revenue Board of Malaysia)
🔹 Apply for SST (Sales & Service Tax) if applicable
🔹 Keep proper financial records and submit annual filings


Cost of Starting a Business in Malaysia

💰 Company Registration Fee: RM1,000 – RM3,000
💰 Business License & Permits: RM500 – RM2,000
💰 Office Space & Utilities: RM1,500 – RM5,000 per month (varies by location)
💰 Employee Salaries: RM2,000+ per staff (depending on industry)


How to Get a Business Visa in Malaysia?

Foreign entrepreneurs can apply for:
🔹 MTEP Visa (Malaysia Tech Entrepreneur Program) – For startups & digital businesses
🔹 Employment Pass – If working under a Malaysian-registered company
🔹 Investor Visa – For business owners investing in Malaysia


Final Thoughts

Starting a business in Malaysia is a smart move for entrepreneurs looking for a stable, business-friendly environment. With the right planning and execution, you can successfully establish and grow your company in this thriving economy.

📌 Need business registration help? Contact us today!

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