Company Types in Malaysia

Updated on Tuesday 23rd May 2017

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Businessmen who want to set up a company in Malaysia can opt for several legal entities; the legal framework applicable here provides three types of legal entities, available for both local and foreign investors, but the requirements can vary, in accordance with the residency of the shareholders. Our team of company formation specialists in Malaysia can offer an in-depth presentation on the legal procedures available for the incorporation of the company and they can also assist in choosing a legal entity which will reflect the investor’s business needs. 

Business forms available in Malaysia 

Foreign investors can opt for one of the following legal entities, which will be registered at the Companies Commission Malaysia

•    limited company;
•    partnership;
•    sole proprietorship. 

More details on the company types in Malaysia are available in the following video: 

The limited company can be incorporated as a public limited company or as a private limited company. The public limited company required as least 50 members and the legislation prescribes that the shares of the company can belong to the public; they are also allowed to be listed on the stock-market. 

The private limited company is the most common type of business registered in Malaysia, as it provides limited liability for the shareholders (established in accordance with the shares owned in the company). 

The partnership in Malaysia requires the association of at least two members; the legislation prescribes a maximum number of members, limited at 20; the statutory documents of the partnership specify that the members have unlimited liability. 

The sole proprietorship is the simplest form of business in Malaysia, in which a natural person can conduct various business activities under his or her name; our team of company incorporation representatives can offer more details on each of the legal entities

Legal framework for foreign companies in Malaysia  

It is important to know that foreign residents can register a company in Malaysia as a private limited company only if two directors of the business are Malaysian residents

Foreign companies, which have already been incorporated in another state, can establish their business operations in Malaysia as a branch. 

Persons who need to receive more details on the legal entities available in Malaysia are welcomed to contact our team of company formation consultants



May 4, 2016

I think the most advantageous legal entity for a small business is the private limited company. I'd be interested in knowing more details about the business market in Malaysia or on the main industries of the state.


January 13, 2017

I am seeing to start new business in Malaysia for this i need some of information about Companies in Malaysia.

Hello, you can send us your request via e-mail at and our specialists in company formation will answer you as soon as possible.

Ashoo Agarwal

June 26, 2017

I would like to set up a foreign company in Malaysia to do business in IT recruitment, outsourcing and consulting domains in Malaysia. Please advise me process and your fee for the same.

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