Step-by-Step Guide on How to Register a Sdn. Bhd. in Malaysia 2025 Edition
Dec 3, 2025
What is Sdn. Bhd.?
In Malaysia, Sdn. Bhd. is a private limited company and is among the most common business structures in the case of SMEs (Small and Medium Enterprises) in Malaysia. One of the most positive factors of Sdn. Bhd. is that there is limited liability on part of the shareholders. This means that the liability of the shareholders is limited to the amount of shares that they own in the company. This is a favorable option for individuals who want to legally secure their business as they run it. This also serves as a means to ensure that there is positive reputation surrounding the business which in turn increases the marketability of the business and facility of accessing business funds and government assistance. Both local and foreign businessmen and women gain tax benefits, such as lower corporate tax rates versus personal income tax. Sdn. Bhd. companies are still one of the prime considerations for business development in and outside Malaysia as of 2025.Why Sdn. Bhd. for Your Business?
- Limited liability: Business owners receive the most protection since shareholders’ liability is only to the extent of the shares they hold.
- Financing: Incorporated companies are able to attract financing and loans more easily as banks and potential investors are more willing to deal with such companies.
- Trust: Clients, suppliers, and partners of the business trust the company more.
- Tax: The corporate tax is lower as compared to the personal tax for Sdn. Bhd., thus, the savings for Sdn. Bhd will be more than personal tax.
- Efficient Growth: A Sdn. Bhd. company is free to grow with no restriction on the issuance of shares and can enter contracts that are restricted to non-incorporated businesses.
A Step-by-Step Process to Register a Sdn. Bhd.
This is a step-by-step guide to registering your Sdn. Bhd. in Malaysia, regardless of your citizenship. Let’s get started.Step 1: Picking a Company Name
Your first job is to identify a fitting name, one that reflects and is suitable to your brand. The name also has to follow guidelines of the Suruhanjaya Syarikat Malaysia (SSM). The name to be chosen must:- Not be the same as, or too similar to, any existing registered companies.
- Not include derogatory or inappropriate words.
- Lastly, it has to be aligned with the nature of the business and resonate with your brand.
Step 2: Designate Directors and Shareholders
In Malaysia, a Sdn. Bhd. company must have:- For directors: At least 2 directors, and one of them must be a Malaysian citizen.
- As for shareholders: At least 2 shareholders, who can be companies or individuals. Foreign shareholders are allowed, but, as a reminder, a local must be one of the directors.
Step 3: Process Required Documents
Moving on to the next step which is collecting the required documents for submission now that the company name, directors, and shareholders have been determined. The following documents are necessary:- Memorandum and Articles of Association (M&A): It is a legal wine that contains the company’s rules, how the company operates, and its organizational structure. It sets out the company’s system of governance, distribution and ownership of shares, and the obligations and entitlements of the directors and shareholders.
- Form 48A: This is a legal declaration that is a confirmation made by the directors of their qualifications and that there is no legal disqualification in the appointment of company directors as specified in the Malaysian company laws.
- Shareholder Information: You need to provide information pertaining to shareholders including their individual shareholdings and the ownership of the shares.
- Registered Office Address: This is the Malaysian address that the company will have for legal and communication purposes.
Step 4: Register with SSM via MyCoID
After the documents are complete, the next step is to register with SSM through MyCoID portal. The procedure for this is:- Submitting your application: This is where you will upload your documents through the MyCoID portal, and SSM will conduct a compliance review of your documents.
- Pay the registration fees: Registering a Sdn. Bhd. can be expensive, the cost usually differs between RM1,000 and RM5,000 based on what the business is and its size.
- SSM Review and Approval: SSM will review the information and documentation provided to determine their compliance with the requirements of Malaysian law. If everything is correct, they will approve your request. Your company will be registered, and your Certificate of Incorporation will be issued.
Step 5: Open a Business Bank Account
Following the official incorporation of your Sdn. Bhd business, the opening of a business bank account is a requirement. For this, you will need to provide the following documents:- Certificate of Incorporation issued by SSM
- Memorandum and Articles of Association.
- Director’s resolution to open the bank account.
- Proof of registered office address.