How to register a company in Malaysia: A guide for employers

Build your competitive advantage in Southeast Asia’s economic corridor.

Malaysia is a growing economy with a strong infrastructure, a strategic Southeast Asian location, and a thriving business environment. Ranked 26th in the World Bank’s Logistics Performance Index, it provides an excellent infrastructure and opportunities for global businesses looking to expand.

This guide will walk you through the process of company registration in Malaysia, the associated costs, and why using an Employer of Record (EOR) can be a smarter alternative for hiring employees without setting up a legal entity.

The business benefits of registering your company in Malaysia

Malaysia’s strong economic fundamentals, skilled workforce, and pro-business government policies make it an attractive destination for company registration and regional expansion.

Here are the key reasons businesses are choosing Malaysia as their launchpad for growth:

• Access to key ASEAN markets, including Indonesia, Thailand, and Singapore.
• Competitive tax rates, investment incentives, and free trade agreements.
• Highly educated talent pool with multilingual capabilities.
• Strong transportation, financial, and digital infrastructure.
• Competitive labor costs compared to other regional hubs.
• Ranked among the top business-friendly nations globally.
• Tax benefits in industries like manufacturing, technology, and finance.

If you want full control over your operations, registering a company in Malaysia might be the best choice. However, if you’re looking for a swift, agile, cost-effective way to hire in Malaysia, an Employer of Record (EOR) can simplify the process by managing legal, payroll, and compliance requirements.

What is the difference between standard company registration and expanding through an EOR?

When setting up a business in Malaysia, you can either register an entity or partner with an EOR. Each option has its unique strengths and fits different needs.  

Here’s a breakdown:

Aspect	Standard company registration	Employer of Record (EOR)
Purpose	Establishes a legal entity, granting full control over operations.	Enables hiring in Malaysia without setting up a legal entity.
Control	Full control over administration and complete responsibility for compliance	Retains operational control while outsourcing HR, payroll, and legal compliance to the EOR.
Cost	Requires upfront investment, including registration fees, office setup, and legal maintenance.	Fixed, predictable fees with no entity setup costs.
Compliance	The company must adhere to Malaysian labor laws, tax regulations, and financial reporting.	The EOR ensures full compliance, reducing risk and administrative workload.
Setup time	2-4 weeks (can stretch longer depending on banking and licensing delays)	Start hiring within days. No setup needed.
Scalability	Best for businesses planning a long-term presence in Malaysia.	Ideal for flexible hiring and expansion.

For businesses seeking a cost-effective, fast, and hassle-free entry into Malaysia, partnering with an EOR can be an excellent solution. Let’s explore why.

How EOR simplifies Malaysia company registration

An Employer of Record (EOR) acts as your legal employer in Malaysia, allowing you to hire employees quickly and remain compliant without setting up a legal entity.

Here are the benefits of using an EOR:

• Begin hiring employees in weeks, not months.
• Effortlessly comply with Malaysian labor laws, EPF, SOCSO, and EIS contributions.
• Avoid upfront incorporation costs, minimum capital requirements for foreign-owned entities, or long-term commitments.
• Stay flexible, quickly scaling up or downsizing to match business needs.
• Reduce administrative work. Let experts handle statutory contracts, Bahasa Malaysia offer letters, onboarding, and monthly payroll filings with LHDN.

An EOR makes it easy to enter the Malaysian market without the stress of understanding and adhering to local labor laws. However, if you want complete control and are ready to take on the compliance responsibilities of managing a workforce in Malaysia, you can opt for company registration. Let’s understand how this works.

How to register a company in Malaysia

According to the Companies Commission of Malaysia (SSM), most incorporations are completed within one to three business days once all documents are correctly submitted and approved by a licensed company secretary. The end-to-end timeline is longer and has multiple steps, including name reservation, document preparation, appointing a licensed company secretary (mandatory), opening a Malaysian bank account, registering with tax authorities, and securing business licenses.

Here’s a breakdown of what to expect:

Step 1: Choose a business structure

• Sdn. Bhd. (Private Limited): Common for foreign businesses, requiring one director/shareholder.
• Berhad (Public Limited): Suitable for larger businesses.
• Sole Proprietorship: Simple, but offers no liability protection.
• Branch/Representative Office: Extends a foreign company’s operations without full incorporation.

Step 2: Register with the Companies Commission of Malaysia (SSM)

• Apply via the MyCoID portal.
• Submit Memorandum & Articles of Association (MAA), director/shareholder details.
• Processing time: 1–3 business days.

Step 3: Obtain a business license

• Apply via the MalaysiaBiz portal–the centralized platform for business licensing.
• Sector-specific licenses (e.g., manufacturing, retail) are required.

Step 4: Open a corporate bank account

• Choose from banks like Maybank, CIMB, and HSBC.
• Digital banks offer remote account setup.

Step 5: Register for tax & social security

• Register with LHDN for tax.
• Enrol employees with EPF & SOCSO for social security.

Next steps: Explore the costs of registering a company in Malaysia and see how an EOR like Multiplier can simplify your expansion.

The real cost of registering a business in Malaysia

Understanding registration costs is key to financial planning. Costs vary by structure and licensing needs.

Here’s a detailed breakdown:​

1. Registration costs

• Company name reservation: RM50
• Application (incorporation) fee:
  • Company limited by shares (Sdn. Bhd.): RM1,000
  • Company limited by guarantee: RM3,000

2. Annual maintenance costs

• Auditing services: RM1,500 and RM2,500 for the first year
• Accounting services: RM500 to RM7,000 per year
• Company secretary fees: RM720 – RM1,200 per year
• Tax agent fees: RM1,000 – RM1,500 per year 

3. Taxation & compliance

• Corporate tax: 24%
• EPF & SOCSO contributions (employer share): 13% 
• Sales and Services Tax (SST): 5 to 15%

By partnering with an EOR, you save the cost of entity setup. You save the considerable money you might otherwise have spent on hiring a company secretary, legal consultants, corporate tax advisors, bookkeepers, and payroll consultants to ensure ongoing compliance with labor and payroll laws.

Cost comparison: Standard registration vs. EOR

Cost aspect	Standard registration	Employer of Record (EOR)
Setup fees	High upfront costs	No setup fees
Share capital	RM1,000+	Not required
Compliance costs	Ongoing legal/tax requirements	Fully managed
Admin & payroll	Monthly bookkeeping & tax filing	Included in EOR services

Traditional registration is ideal when you need to invoice clients, lease property, or bid for government contracts in your company’s name.

An EOR like Multiplier is a swift, hassle-free option for fast, cost-efficient expansion without entity setup. It also gives your company the agility to scale up, downsize, or exit, making it an excellent option for businesses that need to move quickly or validate their market strategy in Malaysia.

Take the stress out of your Malaysia expansion with Multiplier

With Multiplier’s Employer of Record (EOR) solution, you can hire top talent, stay compliant, and manage payroll without setting up a legal entity or taking on additional administrative headaches and expenses.

Here’s how Multiplier simplifies your expansion into Malaysia:

Hire locally, without an entity: Easily onboard employees in Malaysia without the hassle of company registration. Multiplier handles contracts, benefits, and HR compliance.

Effortless work permits: Multiplier can support Employment Pass applications, helping you bring key hires into Malaysia—no local entity needed.

Payroll, taxes & social contributions—sorted: We ensure accurate payroll processing, PCB tax deductions, and timely contributions to EPF, SOCSO, and EIS, keeping your business compliant with Malaysia’s employment laws.

Seamless HR management: From onboarding to leave approvals and expense tracking, our all-in-one platform simplifies HR so you can focus on running your business.

Stay 100% compliant: Avoid legal risks and penalties. Multiplier navigates Malaysia’s labor regulations, ensuring you meet all tax and employment requirements.

Competitive benefits to attract top talent: Offer locally tailored, tax-efficient benefits tailored to Malaysian employees, without worrying about administration or eligibility criteria.

Reliable support, secure operations: With expert guidance and robust security standards, you can expand confidently, knowing your operations are in safe hands.

Expand into Malaysia’s market without slowing down—get your team up and running without delays, legal complexity, or overhead. Book a demo today and learn how Multiplier can help.