5 Types of Company Incorporation in Malaysia

Incorporating a company in Malaysia involves a structured process overseen by the Suruhanjaya Syarikat Malaysia (SSM), also known as the Companies Commission of Malaysia. This guide outlines the steps and options for setting up a business entity in Malaysia, ensuring clarity and compliance with local regulations.

Incorporation Options in Malaysia

1.Sendirian Berhad (SDN BHD) and Berhad (BHD)

  • SDN BHD (Private Limited Company): Requires at least one shareholder (Section 14 of the Companies Act 2016), one director (Section 122), and a company secretary. Documents to be lodged with SSM include:
      • Company constitution
      • Section 201 (statutory declaration by directors)
      • Section 236(3) (declaration by company secretary before appointment)
      • Identity cards/passports of directors and company secretary
      • Note: SDN BHD can have a maximum of 50 shareholders, and its shares are not open to the public.
  • BHD (Public Limited Company): Similar requirements to SDN BHD, but can have more than 50 shareholders and its shares can be publicly traded.


  • Unlimited Company: Similar incorporation procedure as a company limited by shares, but with the constitution stating that the liability of its members is unlimited.

2.Sole Proprietorship or Partnership

  • Sole Proprietorship: A business entirely owned by one individual, registered under the individual’s personal name.


  • Partnership: A business owned by 2-20 persons.


Registration Process: Register at an SSM counter or online via the Ezbiz portal (ezbiz.ssm.com.my) within 30 days of starting the business. Registration can be for one to five years.

3.Limited Liability Partnership (LLP)

    • Formed by professionals such as lawyers, chartered accountants, and company secretaries.
    • Regulated under the Limited Liability Partnerships Act 2012.
    • Offers flexibility in formation, maintenance, and termination.
    • Provides limited liability protection to partners, meaning debts are borne by LLP assets, not individual partners.
    • Recognized as a body corporate capable of suing and being sued.


Incorporating a company in Malaysia is a streamlined process governed by SSM, offering various business structures to suit different needs. Whether you choose an SDN. BHD., BHD, sole proprietorship, partnership, or LLP, understanding the requirements and steps involved is crucial for a successful registration.

By following the guidelines and leveraging online resources like the MyCoID and Ezbiz portals, you can efficiently establish your business in Malaysia, ensuring compliance and positioning yourself for growth in this vibrant economy. Alternatively, you could contact Consistant Info to assist on the company incorporation in Malaysia.