Quick answer — Malaysian Sdn Bhd at a glance. A Malaysian Sdn Bhd is registered with the Companies Commission (SSM), often within a few days, with share capital from RM1, and can be 100% foreign-owned in many sectors. It must have at least one director whose principal residence is in Malaysia and a licensed company secretary. Companies that want to employ foreigners usually need much higher paid-up capital. Corporate tax is 24%, with lower rates for small companies.
Malaysia offers one of the best cost-to-quality ratios in Asia for location-independent professionals: modern cities, English widely spoken, a large expatriate community, and the DE Rantau nomad pass for tech-focused remote workers. Kuala Lumpur and Penang have become popular long-stay bases.
The DE Rantau pass lets you live in Malaysia while working for foreign clients; it does not require, or allow you to rely on, a Malaysian company. A Sdn Bhd becomes relevant when you want to serve Malaysian clients, hire locally, build a regional business or obtain an Employment Pass through your own company. In that case, the resident-director requirement and the paid-up capital needed to sponsor foreign staff are the main hurdles.
It is usually unnecessary for DE Rantau holders who only serve foreign clients. It is not designed for locally employed expats or retirees on long-stay programmes.
Comparing Asian options? See our guide to company setup in Asia for foreigners.
For a stronger hub, compare Singapore incorporation costs. For an alternative where foreign ownership is more restricted, see the Thai company under BOI promotion.
Every Sdn Bhd must have at least one director whose principal or only place of residence is in Malaysia. Founders who don't live there usually appoint a local nominee director, with the same considerations about control and liability as in Singapore.
To obtain Employment Passes for foreign staff — including yourself — a foreign-owned Sdn Bhd typically needs significantly higher paid-up capital, often several hundred thousand ringgit or more depending on the sector. Plan this before relying on your company for your visa.
DE Rantau holders can live in Malaysia while working for foreign employers or clients. You become Malaysian tax resident after 182 days in a year. Malaysia currently exempts most foreign-sourced income of resident individuals, but check the latest rules and end dates.
Amounts are indicative.
The effective rate for small companies is moderate, and dividends are tax-free for shareholders. The capital needed to sponsor foreign staff is often the bigger cost.
Malaysian banks open accounts for foreign-owned Sdn Bhds, usually requiring directors to visit in person, with company documents, business plan and KYC on all shareholders.
The Malaysia Business Bank Comparison Guide compares the main banks for new Sdn Bhds — get it when you start your Malaysian setup with Heavnn.
Yes, in many sectors. Some regulated sectors have foreign ownership limits. The company must have at least one director residing in Malaysia.
No. DE Rantau lets eligible remote workers live in Malaysia while working for foreign employers or clients, without a Malaysian company.
The standard rate is 24%. Qualifying SMEs pay 15% on the first RM150,000 and 17% on the next RM450,000 of chargeable income.
No. Under the single-tier system, dividends are not taxed in the hands of shareholders.
It is a company in the Labuan International Business and Financial Centre that can pay 3% on chargeable profits from qualifying trading activities, if it meets substance requirements.
In Malaysia, you may not need a company at all — or you may need more capital than expected. Heavnn checks before you commit.
Start your Malaysian setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
