FAQ
Questions foreign founders actually ask.
What we get asked every week, organised so you can find what you need fast. Don't see your question? Message us.
Incorporation basics
Setting up a Sdn Bhd as a foreigner.
A foreign shareholder can own a Malaysian Sdn Bhd, but permissible equity and operating approvals depend on the business sector and activity. Distributive trade and other regulated sectors carry their own conditions, so check before assuming 100% foreign ownership is acceptable for the proposed operation. The company still needs at least one director ordinarily resident in Malaysia. We check your intended activity against the equity rules before filing.
SSM approval typically 3–7 working days once documents are complete; about two weeks end-to-end from first message. The common delays are company-name rejection and incomplete director details, which is why we pre-screen names.
No. Incorporation is filed online and documents can be executed remotely, with notarisation where a statutory declaration requires it. The step that may require your presence is the corporate bank account: some banks insist on meeting a director, others accept video verification. We sequence things so you fly in once, or not at all.
Structure & directors
How directors and shareholders work.
One of each, and they can be the same person. Under the Companies Act 2016 the director must be aged 18 or over, ordinarily resident in Malaysia and not bankrupt or disqualified (s.198) — citizenship is not required. You also need RM1 paid-up capital, a Malaysian registered office and a licensed company secretary appointed within 30 days of incorporation (s.236). Where no owner is Malaysia-resident, our nominee director service satisfies the residency requirement.
They are separate roles under the Companies Act 2016. Directors manage the company and carry statutory duties; shareholders own it. One person may be both, either or neither — a director can hold no shares, and a shareholder need never sit on the board. Foreign individuals can be shareholders, subject to the sector rules on foreign equity; at least one director must ordinarily reside in Malaysia.
Yes. A new investor is usually issued new shares rather than buying a founder's: the allotment is approved under the constitution and the Companies Act, documented, and the return of allotment is lodged within fourteen days. An existing shareholder can also transfer shares. Either way, no new incorporation is needed.
Banking
Opening a corporate bank account.
Yes — foreign ownership is not a bar, but expect enhanced due diligence: full KYC up the chain to real individuals, evidence the business is genuine, and often a director present in person or by video. We work with Maybank, CIMB, OCBC and UOB. Account opening is typically 1–3 weeks from submission, and approval is always the bank's decision; a well-prepared file is the biggest factor you can control.
Yes. Stripe is fully available to Malaysian companies. We've onboarded our own AI ventures and many client companies through it. Verification typically takes 2-7 days after the bank account is live.
Tax & compliance
What ongoing obligations look like.
Qualifying companies pay 15% on the first RM150,000 of chargeable income, 17% on the next RM450,000 and 24% above RM600,000. Eligibility is not based on size alone: Malaysian incorporation and tax residence, ordinary share capital (RM2.5 million or less at the beginning of the basis period), gross business income (not more than RM50 million) and ownership tests all matter. Companies with more than 20% direct or indirect ordinary-share ownership by overseas-incorporated companies or non-Malaysian citizens are excluded, as are some related companies. Other companies generally pay 24%. Ask your tax agent to apply all conditions to the relevant assessment year.
Foreign customers do not automatically make revenue tax-exempt. Income source, tax residence, income type and exemption conditions need a case-specific review by a tax adviser before you rely on any exemption.
An annual return to SSM within 30 days of your incorporation anniversary (s.68); financial statements circulated to members within six months of year end and lodged within 30 days after; corporate tax Form C within seven months of year end; and the beneficial-ownership register kept current throughout. Audit applies unless your company qualifies for exemption. All of it is deadline-tracked inside our secretarial retainer.
AI / SaaS / solo founder
Specific to modern, remote-first businesses.
Incorporate where your customers, banking and daily operations actually live. Malaysia's SME tiers (15%/17%/24%, for companies that qualify) and operating costs compare well against Singapore's flat 17% with startup exemptions; Delaware matters mainly when US venture capital demands it. Founders operating in Malaysia who incorporate abroad usually buy complexity, not advantage.
Yes, with a resident director. A sole director must personally ordinarily reside in Malaysia, so a founder managing the company from abroad adds a resident director — our nominee director service is one way. The nominee has no operational or commercial decision-making role and bank-account operations stay with you, but the nominee remains a legal director with statutory duties.
Yes — the team behind this site runs AI ventures incorporated through the same parent firm. Stripe, MRR, foreign customers, agent-first products — these are not abstract concepts to us.
Visas & residency
Living in Malaysia after you incorporate.
Not from incorporation itself — incorporating a company and obtaining the right to live in Malaysia are separate processes, and incorporation confers no immigration status. An Employment Pass sponsored by your own company is possible where the company has sufficient paid-up capital, genuine operations and ESD registration, and the salary meets the published band for the pass category (from 1 June 2026: RM20,000 and above for Category I, RM10,000–RM19,999 for Category II, RM5,000–RM9,999 for Category III). Salary alone does not secure approval. We build and capitalise the company properly; pass applications go to immigration specialists, and we don't predict outcomes.
No. The company is a separate legal entity from you. Many of our clients have never set foot in Malaysia. Tax residency is a separate question — we advise on that case-by-case.
Yes. When hiring, set up employer registrations and payroll obligations with EPF, PERKESO and HASiL; contribution rates vary by age, citizenship and residence status. Foreign hires need the relevant approvals — Employment Pass sponsorship follows its own process, and ESD registration carries paid-up capital requirements that depend on ownership and activity. Registering a company or meeting a capital figure alone does not guarantee a pass.
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