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Can Foreigners Register a Sole Proprietorship in Malaysia?

Foreigners cannot start unlimited companies, enterprises, sole proprietorship companies or limited liability companies, these entities are meant for Malaysian only.


A foreign investor can only start a partnership or sole proprietorship business entity if they have a permanent residence status in Malaysia.


Under the Company Commission of Malaysia (CCM), foreigners are only allowed to register for Private Limited (Sdn Bhd) Companies business entities, and also eligible for the Labuan International Company (LIC) entity.


LIC has special benefits and fewer prerequisites. It can also be 100% foreign owned, has the lowest paid up capital and involves minimum hassle.


Is Sdn Bhd Company a Good Choice in Malaysia?


Private Limited Companies are the most popular entity because:

  • It is a separate legal entity from its shareholders.

  • Liability of losses and debts is limited with this option.

  • Benefits in terms of tax incentives, special government grants and exemptions.

  • Better growth potential.

  • Allows investors to go public to publicly raise funds if needed.

Investors will be required to fulfill the annual statutory audit requirement, and maintain ongoing compliance with SSM.


A foreign company can also be awarded with an MSC Malaysia status if the company is involved in developing or using multimedia technology to enhance or produce their products, services and process development.


There are certain benefits which come with this status, which consist of:



We guide foreign and local investors to register a Sdn Bhd company in Malaysia through the Companies Commissions of Malaysia [SSM]. If you have any further questions, feel free to reach out to us via WhatsApp https://wa.me/60122192492 📲


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