One of the ways of opening a company in Malaysia is by registering a limited liability company, also known as a company limited by shares, and it represents the most popular business form selected for company formation in Malaysia. It is advisable to register a company limited by shares as the shareholders are liable only with respect to their shares owned in the company. Our team of specialists in Malaysia can offer assistance for the incorporation of a limited company.
| Quick Facts | |
|---|---|
| Who can register an LLC in Malaysia? |
Domestic or international investors |
|
Best use for an LLC in Malaysia |
– import & export, – manufacturing, – logistics, – retail |
|
Number of shareholders |
At least 2 shareholders |
| Minimum share capital |
RM 1 |
| Formalities and documents |
– name verification and reservation, – Articles of Association, – licenses and permits application, – tax registration |
| Local corporate bank account required |
Yes |
| Resident director required (YES/NO) |
Yes |
| Legal representative required (YES/NO) |
Yes |
| Local office required (YES/NO) | Yes |
| Government approval for foreign investors (YES/NO) |
No |
| Time frame for company registration |
Around 4 months |
| Time frame for tax registration |
Around 1 month |
| Possibility of hiring foreign employees |
Yes |
| Investment incentives offered (YES/NO) |
Yes |
| We provide support for business registration (YES/NO) | Yes |
Table of Contents
What are the legal requirements for starting a company limited by shares in Malaysia in 2025?
The Malaysian company limited by shares may take two main forms: the public limited company (Berhad) and the private limited company (Sendirian Berhad). The difference is given by the rights related to the owner; a public company allows the investors to own shares in the company, while for the other type of legal entity, this procedure is prohibited. As a general rule, the private limited company is selected for medium-sized companies, while the public company is employed for larger businesses operating in Malaysia. The set paid-up capital for LLCs in Malaysia is RM 1.
The registration of a company limited by shares in Malaysia is done in accordance with the stipulations prescribed by the Companies Act. The company’s trading name should include the words “Sendirian Berhad” in the case of a private company, while the public company should include “Berhad” in its trading name. Besides these requirements, the company limited by shares must also include the following:
- according to Section 14 of the Companies Act, the company must have a minimum of two shareholders;
- it is required to appoint a company secretary, who can be represented by an individual licensed by the Companies Commission of Malaysia;
- it is also necessary to appoint a minimum of two directors, as required under Section 122 of the Act;
- company’s secretary can also be represented by a member of a professional body prescribed by the Minister of Domestic Trade Cooperative and Consumerism.
You might want to explore this infographic with some of the benefits of LLCs in Malaysia:
What are the main advantages of a Malaysian private company limited by shares?
One of the most representative advantages of a business established as a private company limited by shares is the liability protection available for the shareholders, who are not fully liable for the company’s debts. At the same time, this type of company provides a simple procedure related to the transfer of shares, in a situation in which the company will have new shareholders.
The statutory documents of the company should stipulate that the maximum number of members is limited to 50; at the same time, the bylaws should contain restrictions referring to the public’s participation in the company’s shares. It is important to know that a private company limited by shares can also be registered with a single director.
Some of the post-incorporation aspects of LLCs in Malaysia
After the main registration procedures have been completed, the investors should also handle a set of aspects in order to be able to open the respective company. In this sense, it will be necessary to establish a business bank account and register with relevant authorities. Some of the most important matters are the following:
- register for the employee’s retirement fund, social security, and human development and training;
- establish the company’s Annual General Meeting (AGM), which is completed in accordance with the type of company chosen for registration (private or public);
- lodgment of the annual return, which has to be sent no later than 30 days from the anniversary of the incorporation date;
- filing tax returns – the company is required to register with the Inland Revenue Board once the business has become operational.
Here is a video presentation about LLCs in Malaysia:
Taxes paid by limited liability companies in Malaysia
All companies operating in Malaysia must register for tax purposes. If a company’s management and control are in Malaysia, the company is considered a tax resident of this country. Chargeable income from Malaysian LLPs is taxed at a 24% rate generally. Any LLP with a capital contribution of around RM 2.5 million or less enjoys a lower tax rate of 17%. The entire profit of this LLP is exempt from taxation. Businessmen interested in receiving more details about taxes paid by LLPs can address our team of company incorporation agents in Malaysia.
The limited liability partnership, a type of company that reunites the characteristics of a private limited company with the ones of a partnership, is seen as a separate legal entity that is suitable for small businesses and professionals who want to work in their own name. It must have, however, two partners who must obtain a certificate of registration for this entity from the Companies Commission of Malaysia.
What is the duration of the registration process in Malaysia in 2025?
The duration of opening a company in Malaysia can vary based on the legal entity of the company; for example, a sole trader can be registered much faster, as there are only a few incorporation requirements, while more complex structures will have to go through a larger number of procedures. In the case of a limited liability company in Malaysia, the following should be expected:
| Proposing a corporate name for the company | The procedure can be completed in approximately 24 hours |
| Gathering the documents necessary for the registration | It can last approximately 2-3 days |
| Submitting the registration forms | This can also last approximately 1 day |
| The issuance of the digital incorporation certificate | It can be issued in 1 day |
Number of companies in Malaysia
Malaysia remains one of the most popular business destinations in Asia, due to a flourishing economy, among others, where foreign entrepreneurs benefit from an excellent climate for the development of investments. Business operations in Malaysia continue an upward trend in a wide range of important sectors, and below you can find some interesting data in this regard:
- At the end of 2023, there were over 9 million businesses registered in Malaysia.
- The same data for the same year shows that there were around 1,534,000 companies registered in Malaysia.
- Around 37,460 limited liability partnerships were registered in Malaysia at the end of 2023.
- Around 55,559 local companies were registered in Malaysia in 2024. Of these, more than 4,000 were limited liability partnerships.
We suggest the services of our accountants in Malaysia if you have planned a business in this country, such as an LLC. Thus, you will ensure a series of procedures necessary for the smooth running of a business. On the other hand, persons who need further information on such a business structure or who want to open another type of company in Malaysia in 2025 can contact our team of experts in company incorporation in Malaysia for more details. Setting up a business in Malaysia in 2025 can be entirely managed by our local agents.