My Company Formation

---
name: my-company-formation
description: "Source-cited draft: company formation & entity choice for Malaysia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/my-company-formation"
  jurisdiction: "MY"
  tax_year: "2025"
  last_updated: "2026-07-13"
  reviewed_by: "MUHAMMAD HANIS MAT HUSSIN"
---

# Malaysia Company Formation & Entity Choice

## Entity types, incorporation and compliance

- **Company registration authority** — Companies are registered with the Companies Commission of Malaysia (SSM / CCM) under the Companies Act 2016. The private limited company (Sendirian Berhad / Sdn Bhd) is the most common vehicle for business.  _(Companies Act 2016)_
- **Common entity types** — Private limited company (Sdn Bhd), public limited company (Berhad), limited liability partnership (LLP/PLT), partnership, and sole proprietorship  _(Companies Act 2016 / Limited Liability Partnerships Act 2012)_
- **Minimum paid-up share capital (Sdn Bhd)** — RM1 MYR  _(Companies Act 2016 (https://icomsec.com.my/registering-a-malaysian-private-limited-company-sdn-bhd-requirements-costs-timeline-complete-2026-guide/))_
- **Minimum directors (Sdn Bhd)** — At least one director who is a natural person, aged 18+, ordinarily resident in Malaysia  _(Companies Act 2016, Section 196)_
- **Minimum shareholders (Sdn Bhd)** — At least one shareholder (can be the same person as the director); 100% foreign ownership permitted in most sectors  _(Companies Act 2016)_
- **Company secretary requirement** — Must appoint a licensed company secretary within 30 days of incorporation  _(Companies Act 2016, Section 236)_
- **SSM incorporation fee (Sdn Bhd)** — RM1,000 (statutory fee via MyCoID) MYR  _(Companies Act 2016 / Companies Regulations 2017 (https://kcgroup.biz/sdn-bhd-registration-malaysia-2026-guide/))_
- **Incorporation timeline** — Typically 1 to 5 working days once documents and name approval are in order (via SSM MyCoID portal) ((approx — varies by case))  _(Companies Act 2016)_
- **Annual return lodgement** — File annual return with SSM within 30 days of the anniversary of incorporation each year  _(Companies Act 2016, Section 68 (https://arnifi.com/blog/malaysia-annual-return-ssm-filing-2026/))_
- **Audited financial statements** — Must be prepared and lodged with SSM; first within 18 months of incorporation, then within 6 months of financial year-end, lodged within 30 days of circulation to shareholders  _(Companies Act 2016)_
- **Audit exemption for qualifying small companies** — Dormant, zero-revenue, and threshold-qualified small companies may be exempt from statutory audit (subject to SSM criteria) ((approx — confirm current revenue/asset/employee thresholds))  _(Companies Act 2016 / SSM Practice Directives)_
- **Tax registration after incorporation** — Register for an income tax file number with LHDN; register for SST with RMCD if thresholds are met; register employees with EPF/SOCSO/EIS  _(Income Tax Act 1967 / Sales Tax Act 2018 / Service Tax Act 2018)_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `my-company-formation` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/my-company-formation. If neither is available, confirm every figure against the official source pages cited above before relying on it.