[Q] Summary of FAQs and Replies for Setting Up Company in Malaysia

A Malaysian private limited company (Sdn. Bhd.) is registered and regulated by the Companies Commission of Malaysia (SSM, Suruhanjaya Syarikat Malaysia) under the Companies Act 2016 (Act 777).  This article summarises the questions most often asked when setting up a Malaysian company (last updated: 12 September 2026) for quick reference.

Professional services you may be interested in:

◎ [MY] Company Setup – Promotion Package

◎ EStar Online Service Application Platform

FAQs:

Q: What is EStar's process for setting up a Malaysian company?

A: EStar offers a remote, one-stop service with dedicated staff. A Sdn. Bhd. can be registered with SSM in as little as a few working days.

The process is shown below and generally includes: document review → company name search → online video verification of directors/shareholders → registration application through SSM's MyCoID platform → receipt of the registration notice and certificate → signing and filing of post-incorporation compliance documents. To set up a company in Malaysia, please use the online application system and process shown below. If you have any further questions, please contact us anytime.

Q: How does EStar's online application work?

A: The above services are available online. For details, please see:

You can check your order status on our Online Service Application Platform at any time.

Q: Can foreigners register a company in Malaysia, and are there restrictions on where it operates?

A: Under Malaysian company law, foreign individuals or companies can in principle be shareholders of a Malaysian company, and a private limited company (Sdn. Bhd.) can have a single shareholder holding all shares. Subject to industry regulations and foreign ownership restrictions, a Malaysian company can therefore be 100% foreign-owned. SSM imposes no regional restrictions on business scope or registered address, but licences for certain industries (such as food and beverage, retail, education and training, and medical clinics) are issued by local authorities, and certain industries (such as construction, transport, tourism and finance) require licences from their regulators.

Q: What documents are needed to set up a Malaysian company?

A: The documents generally required are:

– Proposed company name

– List of shareholders and directors

– Scanned original ID documents of directors/shareholders (individuals)

– Scanned original proof of address of directors/shareholders (individuals), e.g. utility bills

– Scanned original business registration of corporate shareholders

– Scanned original proof of the company's registered address (must be a Malaysian address)

– Shareholding structure chart of the new company

– For corporate shareholders, scanned original business registration of the ultimate beneficial owners

Our team will contact you if further documents are needed.

Q: What should you pay special attention to when setting up a Malaysian company?

A: Under Malaysian company law, a new company must meet the following conditions for incorporation:

- Registration applicant: An accredited service provider must be engaged.

- Company name: The name is subject to approval by SSM.

- Company directors: At least one director must ordinarily reside in Malaysia.

- Company secretary: A Malaysia-based company secretary must be appointed.

- Registered office: The registered office must be a Malaysian address.

- Paid-up capital: Share capital must be fully paid up, at least MYR 1 for a new company (MYR 1–100 recommended). Subsequent capital increases are based on the actual amount remitted.

If the company has no Malaysia-resident director, it can generally engage a nominee director through a law firm or company secretary and pay an annual director's fee. EStar's Malaysian subsidiary provides company registration, company secretarial and nominee director services. Promotion package: [MY] Company Setup – Promotion Package

Q: Must a Malaysian company adopt a constitution?

A: Under current Malaysian company law, a new private limited company (Sdn. Bhd.) is no longer required to adopt a constitution. If it does not, the powers, duties and responsibilities of the company, its directors and shareholders are governed mainly by the Companies Act.

Q: Is remote electronic signing legal for a Malaysian company, and how is it done?

A: In short, electronic signatures are legal in Malaysia, except in specific cases that require a physical signature. Malaysian law does not require contracts to be in writing to be valid; a contract is formed once it has the basic elements of offer, acceptance, consideration and intention to create legal relations. Electronic signatures are mainly governed by two laws:

- Digital Signature Act 1997 (Act 562): governs digital signatures using public key infrastructure (PKI) with certificates issued by licensed certification authorities, offering the highest legal certainty;

- Electronic Commerce Act 2006 (Act 658): section 6 provides that electronic messages and signatures are not denied legal effect solely because they are electronic, covering ordinary electronic signatures in most commercial transactions.

Note that section 10 of the ECA states that certain documents, such as powers of attorney, wills and trust instruments, and negotiable instruments (such as cheques), still require traditional physical execution and cannot be replaced by ordinary electronic signatures. If you are unsure whether a document can be signed electronically in a cross-border remote signing, please leave us a message or contact our team.

We will keep adding new FAQs and replies to answer your questions.