Premium foreign firms must account for multiple cost layers—government fees, professional charges, and compliance deposits—when incorporating in Malaysia, with total setup expenses ranging from MYR 15,000 to MYR 50,000 for a fully compliant structure.
Government Registration Fees Breakdown
The Companies Commission of Malaysia (SSM) charges fixed filing fees that vary by authorized capital. For premium foreign firms with capital above MYR 500,000, the name reservation fee is MYR 30, and the incorporation fee is MYR 1,610. Additional costs include a MYR 20 certificate of incorporation and a MYR 50 charge for digital business profile extraction.
Mandatory Professional Service Retainers
Engaging a licensed company secretary and a corporate solicitor is compulsory for foreign entities. Secretary incorporation fees range from MYR 2,500 to MYR 5,000, while legal drafting of constitutional documents and shareholder agreements typically costs between MYR 3,000 and MYR 8,000. Registered office address rental adds MYR 1,200 per year.
Minimum Paid-Up Capital Requirements
Premium foreign firms targeting Malaysia’s wholesale, retail, or trade sectors must subscribe to a minimum paid-up capital of MYR 1 million under the National Trade Policy. That capital must be fully deposited into a local bank account before the certificate of incorporation is issued, incurring bank charges of about MYR 200.
Foreign Ownership Compliance Costs
For industries with restricted foreign equity (e.g., logistics, education), a MYR 250,000 to MYR 500,000 corporate guarantee or bank bond may be required. Additionally, applying for a Manufacturing License under MIDA involves a MYR 1,500 processing fee and a MYR 10,000 performance bond deposit.
Post Incorporation Tax Registration Fees
After incorporation, premium firms must register for SST, income tax, and employment tax with the Royal Malaysian Customs and IRB. Each registration incurs a nominal MYR 50 handling fee, but appointing a tax agent for SST filing adds recurring monthly costs of MYR 800.
Ongoing Annual Compliance Budget
All foreign firms must file annual returns, audited financial statements, and tax computations. Annual secretary and audit fees for premium entities average MYR 6,000 to MYR 12,000. The SSM annual return filing fee is MYR 60, and a late filing penalty can reach MYR 400 per day.
| Cost Component | Estimated Amount (MYR) |
|---|---|
| SSM Incorporation Fees | 1,690 – 2,100 |
| Company Secretary (setup + first year) | 2,500 – 5,000 |
| Legal & Constitutional Documents | 3,000 – 8,000 |
| Registered Office Address (yearly) | 1,200 – 2,400 |
| Minimum Paid-Up Capital Deposit | 1,000,000 (required) |
| Bank Account Opening Charges | 200 – 500 |
| MIDA License Application & Bond | 11,500 |
| Tax Registration (SST/Income) | 100 – 150 |
| Annual Secretary & Audit | 6,000 – 12,000 |
| SSM Annual Return Fee | 60 |
| Total First Year Estimated | 1,026,250 – 1,041,710 |
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