FOREIGN DIRECT INVESTMENT (FDI) Guide (1) Setting up a company in Malaysia

FOREIGN DIRECT INVESTMENT (FDI) Guide (1) Setting up a company in Malaysia



Setting up a company in Malaysia is simple and flexible. The Companies Act, 2016 does not has restriction as to the percentage of foreign ownership in the Malaysian Company.


Shareholder and Director

At the time of formation of Malaysian Company, there shall be at least one (1) shareholders and one (1) resident directors.  If the client wish to have only single holding entity to the Malaysian company, then after the formation of the Malaysian company, we can assist to arrange the transfer of shares to a single holding foreign company.


Resident Director

As for the requirement of one (1) resident directors, Companies Act 2016 provides that a Malaysian private company shall have at least one directors, having his principal or only place of residence within Malaysia. The meaning of “residence” or “resident” shall mean a person permanently resides in Malaysia for a period or periods amounting in aggregate to 180 days or more in a year, cases referred MY v Comptroller-General of Inland Revenue [1972] 1 MLJ 84 and Fong Poh Yoke v The Central Construction Co. (Malaysia) Sdn Bhd. [1998] 4 CLJ Supp 112. In the latter, the court has decided that the word “resident” connotes residence in one place with some degree of continuity and apart from accidental or temporary absences (please refer page 136, b of the case).

In order to be sole director of the company, he has to fulfil the requirement under Companies Act 2016, in that he must ordinarily reside in Malaysia, by having a principal place of residence in Malaysia.


Lead Time of Incorporation

Reservation of Company Name:

1-3 days



1 day



You are advised to seek consultation with a Malaysia Law Firm. For further information you may  email us

For consultation on the issue of foreign investment in Malaysia, please proceed to send in your enquiry by clicking here.