How to Register a Sdn Bhd in Malaysia
A complete guide to incorporating a private limited company — requirements, step-by-step process, SSM fees, and common mistakes to avoid.
Registering a Sdn Bhd (Sendirian Berhad) is the most common way to set up a business in Malaysia. It gives you limited liability, a separate legal entity from your personal assets, and the credibility that banks, clients, and government agencies expect when dealing with a proper business.
The process is straightforward if you know what to prepare. This guide covers everything — the requirements, the steps, the costs, and the things most people get wrong.
Quick Summary
SSM registration fee: RM1,010 (flat fee including name search)
Total cost with professional fees: RM1,500 – RM3,000 for a standard setup
Processing time: 3–5 working days (can be as fast as 1 day)
Minimum requirements: 1 director (Malaysian resident), 1 shareholder, registered address, licensed company secretary
Foreigners: Can own 100% in most sectors, but need at least 1 local resident director
What You Need Before You Start
At least one director who is at least 18 years old and ordinarily resides in Malaysia. This means a Malaysian citizen, permanent resident, or someone with a valid work permit and Malaysian address. Under the Companies Act 2016, a Sdn Bhd can operate with just one director — you do not need two like under the old Act.
At least one shareholder. The director and shareholder can be the same person. A Sdn Bhd can have up to 50 shareholders. There is no minimum paid-up capital requirement — technically, RM1 is sufficient, though some industries and banks may expect more.
A registered office address in Malaysia. This is where official correspondence from SSM, LHDN, and other government bodies will be sent. It must be a physical address, not a PO Box. Many business owners use their company secretary’s office as the registered address, which is standard practice and usually included in the cosec service package.
A licensed company secretary. You are required to appoint a company secretary within 30 days of incorporation. The secretary must be a member of a recognised professional body — MAICSA, MIA, or hold a licence from SSM. This is not optional. Your company cannot legally operate without one.
Copies of identification documents. NRIC for Malaysian directors and shareholders, or passport for foreigners. You will also need proof of residential address for each director.
The Registration Process: Step by Step
Step 1 — Company Name Search and Approval
SSM must approve your proposed company name before you can incorporate. You submit a name search application through the MyCoID portal. SSM checks whether the name is already taken, too similar to an existing company, or contains restricted words.
Name approval typically takes one to two working days. If your first choice is rejected, you will need to submit an alternative. Prepare two or three name options before starting so a rejection does not delay the entire process. The name reservation is valid for 30 days.
Step 2 — Prepare Incorporation Documents
Your company secretary will prepare the Super Form (Section 14 declaration) — the main incorporation document containing the company’s details, business activities, director and shareholder information, and registered office address. They also prepare a declaration of compliance confirming all requirements under the Companies Act 2016 have been met.
The company constitution (formerly the Memorandum and Articles of Association) is optional under the new Act, but many companies still adopt one for clarity on shareholder rights, director powers, and dispute resolution.
Step 3 — File with SSM via MyCoID
All incorporation filings are done electronically through SSM’s MyCoID system. Your company secretary submits the documents and pays the registration fee online. There is no need to visit an SSM counter for standard incorporations. Processing typically takes three to five working days.
Step 4 — Receive Your Notice of Registration
Once approved, SSM issues a Notice of Registration (formerly the Certificate of Incorporation). This confirms your company’s registration number, name, date of incorporation, and business activity codes. It is issued digitally through the MyCoID portal. Your company is now legally incorporated.
What to Do After Incorporation
Incorporation is just the beginning. Here is what you need to complete in the weeks following registration:
Register with LHDN
Register for income tax within 60 days of commencing business. You will receive a tax reference number (C number) required for all filings.
Employer Registration
If hiring staff, register with EPF (KWSP), SOCSO (PERKESO), and EIS. Each has its own registration process and deadlines.
Open a Bank Account
You will need your Notice of Registration, constitution, board resolution, and directors’ IDs. Different banks have different timelines — expect one to three weeks.
Business Licences
Depending on your activity and location, you may need licences from your local authority (MBPJ, MBSA, MPK), fire department, or industry regulators.
How Much Does It Cost?
The SSM registration fee is a flat RM1,000 plus RM10 for the name search — RM1,010 to the government. This does not change regardless of paid-up capital.
Professional fees for your company secretary to handle the incorporation typically range from RM500 to RM2,000 depending on the firm and what is included. Some firms bundle the first year of cosec services into the incorporation fee.
A realistic total budget for a straightforward Sdn Bhd incorporation: RM1,500 – RM3,000 all-in. Companies with foreign shareholders or complex structures may pay more.
For a full breakdown of ongoing costs after incorporation, see our guide on how much it costs to run a Sdn Bhd per year.
Can Foreigners Register a Sdn Bhd?
Yes. Foreigners can own 100% of a Sdn Bhd in most business sectors. However, at least one director must ordinarily reside in Malaysia. If you are a foreign entrepreneur without Malaysian residency, you will need either a local co-director or a nominee director service.
Certain industries — banking, insurance, telecommunications, education, and some areas of distribution and retail — have equity restrictions that may require a percentage of Malaysian ownership. Foreign-owned companies may also need to meet minimum paid-up capital requirements depending on the business type and whether they intend to apply for employment passes.
Common Mistakes to Avoid
Choosing a name too similar to an existing company. SSM rejects names that are identical or confusingly similar. Check SSM’s online database first. Avoid restricted words like “bank,” “finance,” “insurance,” or “university” — these require regulator approval.
Not appointing a company secretary within 30 days. This is a legal requirement under Section 236 of the Companies Act 2016. Operating without one is an offence that can result in penalties.
Using incorrect MSIC business activity codes. Wrong codes create problems with licensing, tax classification, and government tenders. Changing them later requires a formal SSM filing.
Forgetting to register with LHDN. SSM registration does not automatically register you for tax. Tax registration is a separate process that must be completed within 60 days of commencing business.
Not keeping proper records from day one. Every Sdn Bhd needs audited financial statements. Messy bookkeeping from the start makes the audit expensive and painful. Set up accounting from day one.
Registering a Sdn Bhd in Selangor
The SSM registration process is the same nationwide — all filings go through the central MyCoID system. However, if you are setting up in Selangor, there are state-specific considerations worth knowing.
Selangor is Malaysia’s largest state economy, contributing the highest share to national GDP. The state offers incentives through Invest Selangor for businesses in targeted sectors including manufacturing, technology, logistics, and green industries.
Business licences in Selangor are issued by your local authority — MBPJ (Petaling Jaya), MBSA (Shah Alam), MPK (Klang), MPSepang, or other councils depending on your business address. Each has slightly different requirements and processing times.
For more on choosing the right location, see our guide on the best areas in Selangor to register your business.
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