Insights · Malaysia Incorporation
How to Register a Sdn Bhd in Malaysia: Steps, Fees and Timeline for 2026
To register a Sdn Bhd in Malaysia, apply to the Companies Commission of Malaysia (SSM) through its Corporate Registry System (CRS), which replaced MyCoID on 14 July 2026. Pay the RM1,000 incorporation fee (plus RM50 if you reserve a name first), and have at least one shareholder and one director who ordinarily resides in Malaysia. A qualified company secretary must be appointed within 30 days. SSM approval normally takes a few working days; allow two to four weeks to reach a working bank account.
This guide is for founders and foreign investors setting up a private limited company in Malaysia. It covers the SSM process after the 2026 system change, the officer, office and capital rules, and the tax, employer and council registrations that follow incorporation.
| Item | Position at 8 October 2026 |
|---|---|
| SSM portal | Corporate Registry System, reached through SSM4U; Phase 1 live since 14 July 2026 |
| Name reservation | RM50 per 30 days, up to 180 days; optional with direct incorporation |
| Incorporation fee | RM1,000 for a company limited by shares |
| Directors | At least one, aged 18 or over, who ordinarily resides in Malaysia |
| Shareholders | At least one; a sole shareholder can also be the sole director |
| Company secretary | Qualified, with an SSM practising certificate; appointed within 30 days |
| Paid-up capital | No statutory minimum; RM500,000 listed for a wholly foreign-owned company hiring expatriates |
| Realistic timeline | A few working days for SSM approval; two to four weeks to a working bank account |
How SSM incorporation works after the July 2026 system change
SSM has moved company lodgements from MyCoID to its new Corporate Registry System, which applicants open from the SSM4U portal. SSM’s CRS FAQ confirms that Phase 1, covering statutory company documents including new incorporations, commenced on 14 July 2026 (its first version had scheduled 30 June), and that existing lodgement fees still apply. Annual returns and financial statements continue to go through the Malaysian Business Reporting System (MBRS).
Start with the name. SSM charges RM50 for every 30 days a name is reserved, up to a maximum of 180 days. You can reserve a name first or use direct incorporation, which covers the name search for RM1,000. Prepare two or three alternatives: SSM’s latest CRS FAQ acknowledges that name searches are taking longer than usual because of application volumes, so a rejected first choice now costs more time.
The incorporation application sets out the business activities, registered office, share capital and the particulars of each director and shareholder. SSM’s table of fees puts incorporation of a company limited by shares at RM1,000. On approval SSM issues a notice of registration; its incorporation guideline says a certificate of incorporation is issued only on request. A constitution is optional for a company limited by shares and can be lodged later.
Directors, shareholders, secretary, office and capital
Section 196(4) of the Companies Act 2016 requires a private company to have at least one director who ordinarily resides in Malaysia by having a principal or only place of residence here. Directors must be natural persons aged 18 or over, and SSM notes that an alternate director does not count towards the minimum. Foreign nationals can sit on the board alongside the resident director, and SSM confirms that one person can be both sole shareholder and sole director.
The board must appoint a company secretary within 30 days of incorporation. The secretary must be a Malaysian citizen or permanent resident who ordinarily resides in Malaysia, belong to a prescribed professional body or hold an SSM licence, and have a current practising certificate. That appointment also starts another clock: SSM’s beneficial ownership guideline gives the company 60 days from it to record its beneficial owners and notify SSM.
Every company needs a registered office in Malaysia that is open to the public during ordinary business hours, and SSM must be told of a change within 14 days. There is no statutory minimum paid-up capital, and many companies start with RM1. Capital matters later, though: the Immigration Department’s Expatriate Services Division lists RM250,000 for a locally owned company, RM350,000 for a joint venture with at least 30% foreign equity and RM500,000 for a wholly foreign-owned company that wants to hire expatriates. Sector licences can set their own levels.
After incorporation: bank account, tax file and employer registrations
Open the corporate bank account early, because most later steps depend on it. Banks typically ask for the SSM registration documents, a board resolution, the constitution if there is one, and identity documents for directors and beneficial owners. Due diligence times vary by bank and ownership structure, and foreign-owned companies should expect more questions.
The Inland Revenue Board (LHDN) says companies registered online with SSM receive a company tax identification number automatically. Its guidance still refers to MyCoID, so check MyTax after a CRS incorporation and apply through e-Daftar if no number appears. A new company must submit its first CP204 tax estimate within three months of starting operations unless it qualifies for the small-company exemption. Before the first payroll, register as an employer with LHDN, file e-CP22 within 30 days of each hire and remit monthly tax deductions by the 15th of the following month.
The Employees Provident Fund requires registration within seven days of employing the first employee. Employers with one or more employees must also register with the Social Security Organisation (PERKESO) and contribute under both the Employees’ Social Security Act 1969 and the Employment Insurance System Act 2017. HRD Corp registration is compulsory for employers in covered sectors with ten or more Malaysian employees and optional at five to nine. Finally, obtain the local council’s business premises licence, and any sector licence, before trading.
Sdn Bhd registration checklist and realistic timeline
- Before applying: agree shareholdings, confirm a director who ordinarily resides in Malaysia, engage a qualified secretary and secure a registered office.
- Days 1 to 3: search and reserve the name on CRS (RM50 per 30 days) unless filing direct incorporation, allowing extra time while searches run slow.
- Days 2 to 5: lodge the incorporation application, pay RM1,000 and receive the notice of registration.
- Within 30 days of incorporation: appoint the company secretary and notify SSM of the appointment within 14 days.
- Within 60 days of the secretary’s appointment: record beneficial owners and notify SSM.
- Weeks 1 to 4: open the bank account and confirm the tax identification number on MyTax.
- Before the first hire: register with LHDN as an employer, with the EPF within seven days of hiring, with PERKESO within 30 days of hiring and, if required, HRD Corp.
- Within three months of starting operations: submit CP204 unless exempt, and hold the council licence before trading from the premises.
What changed for Sdn Bhd registration in 2024–2026?
The biggest change is SSM’s move to CRS on 14 July 2026, but beneficial ownership, payroll and e-invoicing rules for new companies have also moved. As at October 2026:
| Date | What changed |
|---|---|
| 1 April 2024 | Beneficial ownership provisions of the Companies (Amendment) Act 2024 take effect |
| 10 January 2025 | SSM issues its current beneficial ownership guideline |
| October 2025 | EPF becomes mandatory for non-Malaysian employees, including Employment Pass holders: 2% employer, 2% employee |
| 1 July 2026 | Non-exempt businesses that start operating in 2026 begin e-invoicing on this date or their start date, if later |
| 14 July 2026 | CRS replaces MyCoID and e-Secretary; SSM fees unchanged |
| 4 September 2026 | LHDN’s e-invoice FAQ sets the exemption at annual turnover below RM3 million |
| 30 September 2026 | SSM’s late lodgement fee waiver was due to end; for CRS lodgements it is extended to 31 December 2026 |
| 5 October 2026 | SSM says name searches are taking longer than usual |
Budget 2027 is tabled on 9 October 2026; its measures apply only once legislated or gazetted, so this article does not anticipate them.
Worked example: dates and SSM fees for a foreign-owned Sdn Bhd formed in October 2026
A wholly foreign-owned Sdn Bhd that reserves its name on 12 October 2026 and is incorporated on 21 October 2026 pays RM1,050 in SSM fees to incorporate and RM1,200 by its first annual return.
- 12 October 2026: reserve the name for RM50; the Section 14 application must follow within the 30-day reservation.
- 19 October 2026: lodge the application and pay RM1,000. Fees so far: RM50 + RM1,000 = RM1,050 (RM1,000 by direct incorporation).
- 21 October 2026: SSM issues the notice of registration; this is the incorporation date.
- 23 October 2026: the board appoints the secretary, inside the 30-day limit ending 20 November 2026, and notifies SSM by 6 November 2026 (14 days).
- 1 December 2026: operations start, so e-CP204 is due by 28 February 2027. If the parent turns over RM3 million or more, e-invoicing starts the same day.
- By 22 December 2026, 60 days after the secretary’s appointment: obtain, record and lodge beneficial ownership information, tracing through the foreign parent to the individuals behind it.
- Before sponsoring an Employment Pass: pay up RM500,000 and register with ESD, which takes 14 working days once documents are complete.
- 11 January 2027: first employee starts. Register with EPF by 18 January (7 days), with PERKESO and on e-CP22 by 10 February (30 days), and pay January’s EPF and PCB by 15 February 2027.
- By 20 November 2027: lodge the first annual return for RM150. Year-one SSM fees: RM1,050 + RM150 = RM1,200.
Assumptions: no late fees; the RM500,000 is capital, not a fee; professional, council, immigration and bank charges excluded.
How to file a Sdn Bhd incorporation in CRS, step by step
Filing needs a verified SSM4U account, complete director data and online payment. Work in this order:
- Check sector licences and equity conditions: a foreign-owned wholesale, retail or trade business needs a WRT licence and RM1,000,000 paid-up capital for ESD.
- Get access: register on SSM4U and verify your identity at an SSM counter or Tap.it kiosk, or lodge through an authorised user such as a company secretary.
- Collect director details: NRIC for Malaysians; passport number and Foreign National ID for foreign directors, both mandatory.
- Choose the name route: reserve first (RM50 per 30 days, up to 180 days) or file direct incorporation for RM1,000.
- Complete the Section 14 Superform and download the ‘Draft’-watermarked PDF before clicking Submit & Pay.
- Pay by FPX, debit card, Visa or Mastercard credit card, or a listed e-wallet.
- Track the application in CRS and download the notice of registration on approval.
SSM accepts the watermarked Superform for dealings with other parties and agencies and for official purposes.
Beneficial ownership for a new Sdn Bhd: who counts and when to lodge
A new Sdn Bhd does not report beneficial owners in its incorporation application; it has 60 days from the secretary’s appointment to obtain, record and lodge them, and both 14-day steps sit inside those 60 days.
| Item | Rule as at October 2026 |
|---|---|
| Who counts | Always a natural person, never the parent company |
| Main tests | 20% or more of shares or voting shares; power to appoint or remove a board majority; or significant control below 20% |
| Obtain | Within 60 days of the secretary’s appointment |
| Record in the register | Within 14 days of receipt |
| Lodge with SSM | Within 14 days of recording |
| Later changes | Recorded within 14 days, lodged within a further 14 days |
| Each year | With the annual return |
| Foreign company branch | Lodged at registration instead |
These rules sit in Division 8A of the Companies Act 2016, added by the Companies (Amendment) Act 2024.
Common mistakes when registering a Sdn Bhd in 2026
The common slips in 2026 involve CRS data and post-incorporation deadlines rather than the SSM fee or form.
- Letting the 30-day name reservation lapse, or paying RM50 when direct incorporation already covers the search.
- Entering only a passport number for a foreign director: CRS also requires a Foreign National ID.
- Clicking Submit & Pay before saving the draft Superform: CRS does not offer it later, so a copy must be bought through a service provider.
- Counting the beneficial ownership deadline from incorporation: it runs from the secretary’s appointment.
- Naming the foreign parent as beneficial owner instead of the individuals behind it.
- Leaving expatriates off EPF: since October 2025 wages, non-Malaysian employees and employers each contribute 2%.
- Overlooking service tax: a company providing taxable services must register on MySST once it passes its category’s threshold, which the SST article sets out.
Sdn Bhd registration terms explained
These terms appear in CRS screens and SSM notices.
- SSM4U: SSM’s online portal and the gateway to CRS.
- Direct incorporation: one CRS application combining the name search and incorporation, for RM1,000.
- Section 14 Superform: the incorporation application under section 14 of the Companies Act 2016.
- Notice of registration: SSM’s confirmation that the company is incorporated; a certificate of incorporation is issued only on request.
- Foreign National ID: a foreign director’s home-country identity number, required in CRS with the passport number.
Frequently asked questions
Can a foreigner register a Sdn Bhd in Malaysia?
Yes. Foreign nationals can own shares and sit on the board, and full foreign ownership is allowed in most sectors. The company still needs at least one director who ordinarily resides in Malaysia and a qualified, Malaysia-resident secretary appointed within 30 days. Some sectors restrict foreign equity or need licences, and a wholly foreign-owned company that wants to hire expatriates should plan for the RM500,000 paid-up capital listed by the Immigration Department.
How much does it cost to register a Sdn Bhd in Malaysia?
SSM’s own fees are RM1,000 to incorporate a company limited by shares, plus RM50 per 30 days if you reserve a name first. On top of that, budget for the company secretary, a registered office address and any professional help with banking and tax registrations, which vary by provider. There is no minimum capital to inject at incorporation, but licences and expatriate hiring can require substantially more paid-up capital.
How long does it take to register a Sdn Bhd in Malaysia?
In normal conditions SSM approves a name and processes a complete incorporation application within a few working days each. Since the Corporate Registry System replaced MyCoID in July 2026, SSM has acknowledged slower name searches, so build in extra days. The bank account usually takes longest; two to four weeks from name search to a company that can trade is a realistic plan.
What is the minimum paid-up capital for a Sdn Bhd in Malaysia?
The Companies Act 2016 sets no minimum, and many companies are incorporated with RM1. Higher capital is expected in specific cases. The Immigration Department’s Expatriate Services Division lists RM250,000 for a locally owned company, RM350,000 for a joint venture and RM500,000 for a wholly foreign-owned company that wants to hire expatriates, and sector regulators can set their own requirements.
Do I need beneficial ownership details to incorporate a Sdn Bhd in Malaysia?
Not in the incorporation application. SSM’s guideline gives a new company 60 days from the company secretary’s appointment to obtain the information, record it in its register of beneficial owners and lodge it with SSM. A foreign company registering a branch lodges it at registration. These rules have applied since 1 April 2024.
What ID does a foreign director need for SSM’s Corporate Registry System?
A passport number and a Foreign National ID, both mandatory in CRS. Where the home country has no national ID, a social security or other recognised number can be used; if none can be obtained, SSM allows the passport number in the Foreign National ID field.
Do I have to visit SSM in person to register a company?
Only as a new SSM4U user lodging yourself: SSM verifies identity at a counter or Tap.it kiosk before the account can reach CRS. Name search, incorporation and payment are then online. Lodging through a company secretary or other authorised user avoids the visit.
Is a new Malaysian subsidiary of a larger group exempt from e-invoicing?
Not if its holding company, a non-individual shareholder, a related company or a joint venture turns over RM3 million or more: LHDN’s FAQ (updated 4 September 2026) then withholds the below-RM3 million exemption. The subsidiary starts on 1 July 2026 or the day it begins operating, whichever is later.
What proves a Sdn Bhd is registered if SSM issues no certificate automatically?
The notice of registration SSM issues on approval, backed by the ‘Draft’-watermarked Section 14 Superform, which SSM accepts for official purposes. LHDN takes the notice of registration with the latest company profile, and SSM issues a certificate of incorporation on request for the prescribed fee.
Sources
Figures in this article were checked against these sources on 8 October 2026. Rates, fees and deadlines change, so confirm the current position with the authority before acting.
- Companies Commission of Malaysia (SSM), Table of fees
- Companies Commission of Malaysia (SSM), Frequently asked questions: Corporate Registry System (CRS)
- Companies Commission of Malaysia (SSM), Submitting incorporation of a company
- Companies Commission of Malaysia (SSM), Guidelines for Incorporation of a Local Company
- Immigration Department of Malaysia (Expatriate Services Division), FAQ: ESD company registration
- Inland Revenue Board of Malaysia (LHDN), Company tax file registration
- Inland Revenue Board of Malaysia (LHDN), Employer responsibilities
- Employees Provident Fund (KWSP), Employer registration
- Companies Commission of Malaysia (SSM), Guidelines for the Reporting Framework for Beneficial Ownership of Companies
- Companies Commission of Malaysia (SSM), Frequently Asked Questions: Companies (Amendment) Act 2024 [Act A1701]
- Inland Revenue Board of Malaysia (LHDN), Implementation of e-Invoice in Malaysia: Frequently Asked Questions (FAQs)
- Employees Provident Fund (KWSP), Contribution For Non-Malaysian Citizen Employees
- Social Security Organisation (PERKESO), Registration