Our specialists in company incorporation in Malaysia can assist in opening holding companies in 2026 in this country. Discover the main formalities for setting up such a structure in this article and reach out to us for assistance.
| Quick Facts | |
|---|---|
| Legal entities used | Limited Liability Company |
|
Incorporation method |
With the Malaysian Trade Register |
|
Incorporation time |
Around 10 days |
| Advantages |
It can have voting rights in many companies. |
| Precautions |
Resident director required |
| Shareholding structure |
1 shareholder |
| Minimum Capital |
USD 1 |
| Taxation | 24% corporate tax rate |
| Control | Foreign ownership available |
| Accounting and Reporting | Annual reporting |
| Number of double taxation treaties | 77 |
Table of Contents
Who can set up holding companies in Malaysia?
Individuals or entities, local or from overseas.
What are the key features of holding companies in Malaysia?
- owns shares in subsidiary companies,
- manage various assets,
- provides solid asset protection,
- beneficial from a tax point of view,
- fast incorporation: only one shareholder & director who can be the same individual,
- no restrictions on foreign ownership,
- 50% on voting rights,
- controls, and manages the subsidiaries, etc.
What is the proper business structure for a holding company in Malaysia?
The private limited liability company, known as Sdn Bhd in Malaysia.
Is a representative agent required for opening a holding company in Malaysia?
Yes. This representative agent (who can be one of our Malaysian agents) will act as an authorized person for holding company registration.
Here is an infographic with information on holding companies in Malaysia:
Is there a minimum share capital solicited for a holding company in Malaysia?
RM 1.
What are the requirements for opening a holding company in Malaysia?
- ensure a registered business address in Malaysia,
- appoint a director (can be the shareholder) with residency in Malaysia,
- verify and reserve the business name,
- open a corporate bank account in Malaysia,
- prepare the documents, etc.
What are the documents solicited for setting up a holding company in Malaysia?
- proof of business address in Malaysia,
- a declaration of compliance confirming the shareholders & directors have clear criminal records,
- the company’s internal rules,
- board resolution from the parent company,
- Articles & Memorandum of Association of the foreign company, plus the Certificate of Incorporation,
- notice of registration to open a bank account, etc.
Where do I register a holding company in Malaysia?
With the Companies Commission in Malaysia (SSM).
What is the management structure of a holding company in Malaysia?
- Shareholders,
- Board of directors (at least one of them with residency in Malaysia),
- Company secretary.
Below you can discover a video presentation about holding companies in Malaysia:
Are there extra requirements for setting up a holding company in Malaysia in 2026?
Yes, it is important to appoint a company secretary within 30 days of the date of the holding company’s incorporation in Malaysia.
How much can a holding company own in a subsidiary in Malaysia?
It can hold more than 50% of the issued share capital of the subsidiary.
What is an investment holding company in Malaysia?
An investment holding company in Malaysia is a type of holding company whose basic activity is the holding of investments in other legal entities. In order to qualify as an investment holding company, at least 80% of the company’s gross income has to derive from such investments.
What are the main activities of an investment holding company in Malaysia?
- an investment holding company (IHC) in Malaysia can develop only specific business activities related to the real estate sector.
- it is allowed to rent real estate properties and provide maintenance and support services related to the respective estate.
What is the taxation of a holding company in Malaysia?
24% corporate tax rate.
IMPORTANT! Investment holding companies in Malaysia do not qualify for preferential tax rates. Unlisted IHCs in Malaysia can deduct expenses like director’s fees, audit fees, secretary fees, etc.
What is the time frame to open a holding company in Malaysia?
Around 10 days, with name reservation and SSM approval.
Ready to set up a holding company in Malaysia and need more details or perhaps guidance? You may contact our experts in company formation in Malaysia and make an appointment today!