Business Incorporation

Business Plan

No nation can prosper without stabilizing its economy, and Malaysia is no exception. To stabilize the economy, the generation of business activities is crucial.

Malaysia has revolutionized its business infrastructure and ecosystem, taking its economy towards a boomperiod, and we have witnessed the efficacy of the latest policies, especially in the last decade.

Today, Malaysia is among the most suitable countries for business purposes, and it has encouraged not only locals but also foreigners to start their businesses in Malaysia.

But like any other country, you will need to come into the legal net and go for incorporation company Malaysia to get the maximum benefits of Malaysia's economic reforms.

Even though the policies around company setup Malaysia are simplified, they can still become overwhelming and complicated for someone who is not an expert.

Ha & Co. provides its services for company registration in Malaysia to play its part in the economic growth and facilitate businesses to conduct their operations legally.

Types of Company Registration in Malaysia:

Like other countries, Malaysia also classifies businesses and companies into different categories, primarily based upon their structure. Each type has its different documentationrequirements, procedures, and benefits, Ha & Co. can help you with all these types.

We are listing them down with some basic information  so you can make the best choice for your business.


  1. Private Limited Company:

When it comes to incorporating a company in Malaysia, Private Limited Company is probably the most popular type.

The key benefit of a Private Limited Company is that the shareholders and directors get limited liability protection. Other benefits are that it gets the status of a separate legal entity, a lower income tax rate, corporate identity and branding.

For a company to setup in Malaysia as a Private Limited Company, there has to be at least 1 director who is a resident of Malaysia and at least one shareholder that can be a natural person or another private entity. The director can also be a shareholder at the same time.

Such company registration in Malaysia comes under the Companies Commission of Malaysia and is registered under the Companies Act 2016.


  1. Sole Proprietorship:

A sole proprietorship is the most straightforward kind of incorporation company Malaysia.

For registration, a person can use his/her own name as his/her trade name and be all-in-all ofhis/her business. The only requirement is that the person has to be a Malaysian citizen or a permanent resident. This option is not available for corporate legal entities or foreigners.

The key feature as a sole proprietor is that there are no corporate tax liabilities. The registration process is quick and easy. Sole proprietorships also have the lowest annual maintenance compared to the other types and have to follow less formal business requirements.

It is governed by the Companies Commission of Malaysia and comes under the Registration of Business Act 1956.           


  1. Conventional Partnership:

A conventional partnership is the mostpoplular businessorganization in Malaysia for those who want to partner with someone in their business venture.

There has to be more than one person and up to 20 persons who can be the co-owners of the same business. Each business owner has to be a Malaysian citizen or a permanent resident, whereas corporate legal entities and foreigners cannot be partners in this type.

Partnership gets the same benefits as a sole proprietorship, comes under the Registration of Business Act 1956, and is governed by the Companies Commission of Malaysia. But the business's name cannot be the name of a person.

There is no option for a conventional partnership to be converted to a Sdn Bhd. Instead, the partners in aconventional partnership have to dispose of their partnership business (or parts of the partnership business) to the Sdn Bhd. The sale may attract stamp duty or real property gains tax, as the case may be , or the owner can opt for sole proprietorship if all the partners leave.


  1. Limited Liability Partnership:

Limited Liability Partnership is Malaysia's most recent type of company setup, introduced in 2013.

Such registration combines the features of a partnership and private limited company. The partners have a limited liability.But they still get to be partners instead of shareholders.

In terms of registration, there has to be a compliance officer who is a citizen or permanent resident of Malaysia or a qualified company secretary specified by the Companies Act 2016.

The key features include a blend of both private limited companies and limited liability partnerships as the partners get limited liabilities and an exemption from the production of financial statements and audits. However, the company gets lower tax rates and the status of a separate entity.

As the limited liability partnership is registered under the Limited Liability Act 2012 and governed by the Companies Commission of Malaysia, it is possible to switch to a private limited company.