How to Establish an Offshore Company in Malaysia

Thinking of expanding globally while keeping costs and compliance low? Setting up an offshore company in Malaysia might be the smart move you’re looking for.

Many foreign investors and global businesses are now exploring mainland Malaysia, including Kuala Lumpur, Selangor, and Johor, as strategic offshore locations thanks to pro-business policies, lower operational costs, and easy access to ASEAN markets.

In this guide, we’ll walk you through what an offshore company is, why Malaysia is an ideal choice, and how you can set one up seamlessly.

Also Read: Employment Law in Malaysia

What Is an Offshore Company?

An offshore company is a business entity that is legally incorporated in a jurisdiction outside the country of residence of its owners. These companies are typically formed to leverage strategic business advantages that are not readily available in the owner’s home country. While the term is often associated with tax efficiency, the reality is broader and more nuanced.

Establishing an offshore company allows entrepreneurs, investors, and multinational corporations to operate internationally, expand their market reach, and protect their assets through favorable legal and regulatory frameworks.

Common Reasons for Setting Up an Offshore Company

Here are some of the most widely recognized motivations for offshore company formation:

1. Tax Optimization
   Many offshore jurisdictions offer competitive tax regimes, including low or zero corporate tax for income generated outside the country. In Malaysia, while certain sectors are taxed, businesses can still benefit from tax incentives provided by agencies such as the Malaysian Investment Development Authority (MIDA).
   
2. Streamlined Regulatory Environment
   Offshore jurisdictions often maintain simplified compliance requirements, which translates into reduced administrative overhead. In Malaysia, companies may enjoy less burdensome reporting obligations compared to other high-compliance countries, depending on the structure and nature of the business.
   
3. Asset Protection
   Establishing an offshore company can provide a legal structure that helps safeguard intellectual property, capital investments, and other business assets from political instability, lawsuits, or excessive regulations in the home country.
   
4. Global Market Entry
   Offshore incorporation is often the first step in entering new international markets. Malaysia’s strategic location in Southeast Asia makes it an ideal offshore base for companies targeting regional expansion within ASEAN and beyond.
   
5. Operational Flexibility
   Offshore companies can hire employees, sign contracts, open bank accounts, and enter joint ventures, giving them the same commercial capabilities as local companies, while retaining ownership and control from abroad.

Also Read: Why EPF, SOCSO, and EIS Are Essential for Malaysia Payroll

Offshore Companies in the Malaysian Context

In Malaysia, foreign entrepreneurs can incorporate a company without the need to be physically present in the country. Remote setup is legally permissible, provided the incorporation process complies with local regulations. For most business sectors, foreign investors can own 100% of the shares in a Malaysian-incorporated company, which is particularly attractive for overseas businesses seeking full control.

It’s important to differentiate between Labuan offshore companies, which are governed by their own regulatory framework under Labuan Financial Services Authority (LFSA), and offshore companies incorporated in mainland Malaysia, such as in Kuala Lumpur, Johor, or Selangor. The focus of this guide is on the latter.

Note: Offshore companies incorporated in mainland Malaysia are regulated by the Companies Commission of Malaysia (SSM) and must comply with the provisions of the Companies Act 2016.

To maintain transparency and legitimacy, offshore companies in Malaysia are also subject to relevant tax reporting and compliance requirements with agencies like:

• The Inland Revenue Board of Malaysia (LHDN)
• Bank Negara Malaysia (for foreign exchange regulations)
• Malaysia Digital Economy Corporation (MDEC) for digital businesses and MSC status companies

Is Setting Up an Offshore Company Legal?

Yes. Offshore company formation is entirely legal when done in compliance with the host country’s laws. Malaysia actively encourages foreign investment through its pro-business regulatory environment, transparent company registration system, and investor protection mechanisms.

However, it’s critical to ensure that the company is not being used for illicit purposes such as tax evasion, money laundering, or fraudulent financial transactions. To align with Malaysia’s commitment to international transparency standards, offshore companies must adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations.

Why Set Up an Offshore Company in Malaysia?

Establishing an offshore company in Malaysia offers a unique combination of strategic advantages that appeal to global entrepreneurs, startups, and multinational corporations. Malaysia has steadily positioned itself as a business-friendly jurisdiction, supported by transparent regulations, a growing digital economy, and proactive government initiatives aimed at attracting foreign investment.

The following are key reasons why global businesses consider Malaysia an ideal location to set up an offshore company, beyond traditional offshore centers like Labuan.

1. 100% Foreign Ownership Permitted in Most Sectors

Malaysia allows full foreign equity ownership for most types of businesses, particularly those that serve international markets or operate in promoted sectors such as technology, logistics, and professional services.

The Malaysian Investment Development Authority (MIDA) plays a central role in facilitating this, especially through its guidelines on foreign investment for selected industries. Unlike some ASEAN countries where joint ventures with local partners are mandatory, Malaysia provides a more liberalized environment for foreign founders.

This ownership flexibility makes Malaysia an ideal jurisdiction for entrepreneurs who want full control of their business operations.

2. Strategic Location in the Heart of Asia

Malaysia is located at the crossroads of Southeast Asia, with excellent access to major markets such as:

• Singapore (by land and sea)
• Indonesia
• Thailand
• Vietnam
• China
• India

With well-developed infrastructure, international ports, and air connectivity, Malaysia serves as a cost-effective logistics and operations hub for businesses looking to scale in Asia and beyond. Its proximity to high-growth economies, especially within the ASEAN Economic Community (AEC), enables offshore companies to serve over 650 million consumers across the region.

Also Read: What is Outsourcing?

3. Skilled, English-Speaking, and Affordable Workforce

Malaysia offers a large pool of highly educated and multilingual professionals, especially in industries such as:

• Information Technology (IT)
• Legal and Compliance
• Financial Services and Accounting
• Engineering and Manufacturing
• Customer Support and Shared Services

With a strong emphasis on technical and vocational education, the local talent pool is not only cost-effective but also globally competitive. This has made Malaysia an attractive destination for shared service centers, outsourcing, and regional headquarters.

4. No Physical Office Requirement for Incorporation

For many types of offshore entities, Malaysia does not require the business to maintain a physical office. A virtual office address can fulfill statutory requirements for registered business communications, as long as it complies with the Companies Commission of Malaysia (SSM) regulations.

This feature significantly reduces overhead costs for companies that do not require local storefronts or physical operations, especially in the early stages of market entry.

5. Lower Operational and Labor Costs

Compared to regional hubs like Singapore, Australia, or the United Arab Emirates, Malaysia offers:

• Lower office rental rates
• Competitive labor costs
• Reasonably priced utilities and business services

For example, average monthly office rental in Kuala Lumpur can be 30–60% lower than in Singapore, while the average cost of hiring qualified professionals is also significantly reduced. This translates into better cost-efficiency and higher profit margins for offshore operations.

6. Attractive Tax Incentives and Exemptions

Malaysia offers a broad range of tax incentives, especially for businesses in promoted sectors such as:

• Green technology
• Manufacturing and automation
• Digital and multimedia services
• Research and development (R&D)
• Biotechnology

Incentives include pioneer status (partial tax exemptions), investment tax allowances, and reinvestment allowances, many of which are administered through MIDA. You can learn more about these schemes via MIDA’s Incentive Directory.

These incentives help reduce effective tax rates and encourage long-term business growth in Malaysia.

Also Read: How to Hire Using EOR in Malaysia

7. Business Visa and Relocation Opportunities

Entrepreneurs and key personnel of offshore companies may apply for long-term business visas or work permits, depending on their role and nature of operations.

In addition, Malaysia’s My Second Home (MM2H) program allows qualifying foreigners to reside in Malaysia with a 5- to 10-year renewable visa. It is an attractive option for business owners who wish to relocate, manage operations locally, or enjoy the high quality of life Malaysia offers. Details on eligibility and conditions can be found on the official Immigration Department of Malaysia site.

Summary of Key Advantages

Business Structures Suitable for Offshore Companies in Malaysia

When setting up an offshore company in Malaysia, one of the most important decisions is selecting the appropriate business structure. The structure you choose will directly affect your legal liability, tax obligations, compliance requirements, operational flexibility, and ownership rights.

Malaysia’s legal framework, governed primarily by the Companies Act 2016 and regulated by the Companies Commission of Malaysia (SSM), offers a range of incorporation options that cater to different business goals—whether you’re looking for long-term operations, market entry, or regional representation.

Below are the four most common structures suitable for foreign entrepreneurs and offshore investors.

Also Read: 4 Types of Employment Contracts in Malaysia Recruitment

1. Private Limited Company (Sdn. Bhd.)

The Private Limited Company, known locally as Syarikat Sendirian Berhad (Sdn. Bhd.), is the most popular and versatile legal structure for foreign-owned businesses operating in Malaysia.

Key Features:

• Allows up to 100% foreign ownership, depending on the business activity
• Recognized as a separate legal entity from its owners, offering limited liability protection
• Requires a minimum of one director who must ordinarily reside in Malaysia
• Mandatory to appoint a licensed company secretary within 30 days of incorporation
• Suitable for profit-generating business operations, including trade, services, and investment holding

This structure is ideal for global companies seeking long-term presence and operational control in Malaysia. It also offers the flexibility to scale, employ staff, enter into contracts, and open corporate bank accounts.

Legal Reference: Companies Act 2016, SSM – Incorporation Guidelines

2. Foreign Branch Office

A Branch Office allows a foreign parent company to establish a presence in Malaysia without forming a separate legal entity. While it must register with SSM, it remains legally and financially dependent on the parent company.

Key Features:

• Not a separate entity; acts as an extension of the parent company
• Liable for taxes in Malaysia on income derived from Malaysian operations
• Must appoint a Malaysia-based agent to represent the branch
• Must file annual audited accounts of the foreign parent
• Cannot engage in activities not aligned with the parent company’s objectives

A branch office is most suitable for foreign corporations that want to conduct business directly in Malaysia without setting up a fully separate subsidiary.

Note: While this structure allows for operations, it does not provide limited liability protection distinct from the parent company.

3. Representative Office (RO)

A Representative Office is a non-commercial entity that allows foreign companies to explore the Malaysian market before making a full investment commitment. It is often used for liaison, branding, or research purposes.

Key Features:

• Cannot engage in profit-generating or commercial activities
• Not required to pay income tax, as it does not generate revenue
• Allowed to conduct market research, coordinate with headquarters, or build brand visibility
• May employ a small number of expatriates (subject to approval)
• Approval must be obtained from the Ministry of International Trade and Industry (MITI)

This structure is ideal for companies that want a temporary, low-risk presence in Malaysia to assess feasibility, build networks, or facilitate regional coordination.

Reference: MITI’s Guide to Establishing a Representative Office

4. Limited Liability Partnership (LLP)

Introduced under the Limited Liability Partnerships Act 2012, the LLP structure is a hybrid between a traditional partnership and a private limited company. It provides the flexibility of a partnership with the limited liability benefits of a corporation.

Key Features:

• Can be owned by local or foreign individuals or corporate bodies
• Partners have limited liability for business debts
• No requirement for annual audited financial statements (unless required by the Registrar)
• Not suitable for certain regulated industries such as finance or legal services
• Must appoint a compliance officer residing in Malaysia

LLPs are appropriate for professional service providers, small firms, and foreign partnerships seeking to collaborate under a flexible business structure with lower compliance burdens.

Reference: SSM’s LLP Overview

Choosing the Right Structure

Your decision should be guided by several factors, including:

• Nature and scope of your business activity
• Capital investment and scalability plans
• Desired level of liability protection
• Local compliance and tax obligations
• Whether you require a full commercial setup or just a market entry presence

For companies looking to establish a sustainable offshore operation in Malaysia with full flexibility, the Sdn. Bhd. structure is often the preferred choice. It balances compliance, credibility, and ownership control, making it the go-to structure for foreign investors.

Also Read: Average Salary in Malaysia 2025

Key Requirements to Establish an Offshore Company in Malaysia

Setting up an offshore company in Malaysia requires compliance with specific legal and regulatory standards. These requirements ensure proper governance, transparency, and operational readiness. Below is an overview of the essential components needed to incorporate a foreign-owned business entity in Malaysia.

Company Name Reservation

Before incorporating, a proposed company name must be submitted to and approved by the Companies Commission of Malaysia (SSM). The name must comply with SSM’s guidelines and should not be identical to or closely resemble any existing company names or trademarks in Malaysia.

Minimum Number of Directors and Shareholders

A minimum of one director and one shareholder is required. The director must be at least 18 years old and ordinarily reside in Malaysia. Foreign entrepreneurs may appoint a nominee director to meet this residency requirement. The shareholder may be an individual or a corporate entity, and full foreign ownership is permitted in many business sectors.

Registered Office Address in Malaysia

All companies must have a local registered office address in Malaysia. This serves as the official point of contact for government correspondence. In many cases, a virtual office is acceptable, especially for offshore entities not requiring a physical presence.

Minimum Paid-Up Capital

The minimum paid-up capital to register a private limited company (Sdn. Bhd.) is RM1. However, certain industries such as finance, education, or those regulated by the Malaysian Investment Development Authority (MIDA) may require a significantly higher capital threshold (e.g., RM500,000 or more).

Appointment of a Licensed Company Secretary

A licensed company secretary, residing in Malaysia, must be appointed within 30 days of incorporation. This individual plays a key role in ensuring statutory compliance, filing annual returns, maintaining company records, and liaising with regulatory bodies.

Clearly Defined Business Activities

A concise and accurate description of your business operations is required. This helps determine the appropriate industry classification, applicable licenses, and potential incentives. The stated business activities must fall within the permitted scope outlined by the SSM and other relevant authorities.

Documents Required for Offshore Company Incorporation

To initiate the incorporation process, the following documentation must be prepared and submitted:

• Certified copy of passport(s) of all directors and shareholders
• Proof of residential address, such as recent utility bills or bank statements
• Proposed company name and at least three alternatives (in case of rejection)
• Company Constitution (previously known as the Memorandum & Articles of Association)
• Detailed business plan or description of intended commercial activities
• Statutory declaration of compliance, to be prepared and submitted by the appointed company secretary

Note: While setting up an offshore company in Malaysia is a streamlined process, expert guidance from a corporate services provider ensures full compliance with local regulations and avoids costly administrative oversights.

Incorporate Your Malaysia Company with FastLane Group

If you’re planning to register an offshore company in Malaysia, FastLane Group offers comprehensive, end-to-end support to simplify and accelerate the entire incorporation process. Our experienced team guides you through every step, from initial company formation and name reservation to securing nominee director services to meet local regulatory requirements. Beyond incorporation, we provide ongoing compliance management, including statutory filings, tax registration, and regulatory reporting, ensuring your business remains fully compliant with Malaysian laws. By partnering with FastLane Group, you gain access to trusted local expertise, personalized solutions, and a seamless onboarding experience designed to help your offshore company succeed in Malaysia’s dynamic market.

Also Read: 7 Strategic Benefits of Using an EOR for Talent Acquisition

Step-by-Step Guide: How to Register an Offshore Company in Malaysia

Establishing an offshore company in Malaysia is a straightforward process when approached with the right support and guidance. Below is a detailed overview of each step involved, from reserving your company name to ensuring tax and statutory compliance.

Step 1: Company Name Search and Reservation

The first step in setting up an offshore company in Malaysia is to reserve your preferred company name with the Companies Commission of Malaysia (SSM) through the MyCoID online portal.

• Procedure: Submit at least one proposed company name, along with a brief description of your intended business activities.
• Timeframe: Typically processed within 1–2 business days.
• Government Fee: RM50 per name application.
• Important Notes: Names must not be identical to existing companies and must comply with SSM’s naming guidelines. The name reservation is valid for 30 days upon approval.

Step 2: Prepare Incorporation Documents

Once the name is reserved, you will need to compile and prepare the required incorporation documents. This process is typically handled by your appointed licensed company secretary in Malaysia.

Key Documents Include:

• Passport copies of all directors and shareholders.
• Proof of residential addresses (e.g., utility bills or bank statements).
• Proposed company constitution (optional but recommended).
• Declaration of compliance (prepared by your company secretary).
• A brief business plan or description of intended activities.

Note: For foreign founders not residing in Malaysia, a nominee director service may be arranged to meet the local directorship requirement.

Also Read: 10 Small Business Functions That Can Be Easily Outsourced

Step 3: Submit the Incorporation Application to SSM

Your appointed company secretary will submit the complete incorporation application to SSM via the MyCoID platform. Upon approval, you will receive a Certificate of Incorporation (Section 17 Form/Section 14 under Companies Act 2016), signifying the legal establishment of your business.

• Processing Time: 3–5 working days, subject to completeness and compliance of documents.
• SSM Fees (Based on Authorised Share Capital):

Note: These fees are one-time government charges and exclude professional service fees from corporate service providers.

Step 4: Open a Corporate Bank Account

Once your company is incorporated, you will be eligible to open a corporate bank account in Malaysia. Most Malaysian banks require a physical meeting with at least one director or authorised representative.

What You’ll Need:

• Certificate of Incorporation.
• Company Constitution.
• Board resolution to open a bank account.
• Identification documents of directors/shareholders.

Professional Tip: Engaging a local corporate services provider such as FastLane Group can simplify this process through established partnerships with major Malaysian banks.

Also Read: Hiring an Offshore Development Team in 2025

Step 5: Register for Tax and Statutory Compliance

After incorporation and bank account setup, you must register your offshore company with the relevant government bodies to meet compliance obligations:

• Inland Revenue Board (LHDN) – Corporate income tax registration.
• Employees Provident Fund (EPF) – Mandatory for hiring local employees.
• Social Security Organization (SOCSO) – For employee insurance.
• Human Resource Development Fund (HRDF) – Applicable to specific industries.

Depending on your business activities and structure, other licenses or permits may also be required, such as import/export licenses or sector-specific approvals from authorities like MIDA or MITI.

With proper planning and a knowledgeable incorporation partner, registering an offshore company in Malaysia is efficient and offers long-term benefits. From full foreign ownership to competitive operational costs, Malaysia continues to attract global entrepreneurs seeking a strategic base in Southeast Asia.

Need Help with the Company Incorporation Process?
FastLane Group’s team of incorporation experts and legal professionals offers end-to-end support, from company registration to nominee director services, tax setup, and compliance, ensuring your offshore company launch is smooth and fully compliant.

Can I Use an Employer of Record (EOR) Instead of Company Incorporation?

For many international businesses, fully incorporating a company in Malaysia may not be the best first step. If your goal is to test the market, scale gradually, or hire local talent quickly without establishing a legal entity, using an Employer of Record (EOR) like FastLaneRecruit offers a strategic and low-risk alternative.

What Is an Employer of Record (EOR)?

An Employer of Record is a third-party organization that legally employs workers on your behalf in Malaysia. While your company maintains control over the employee’s day-to-day work and responsibilities, the EOR manages all HR, payroll, tax, and compliance functions. This allows you to operate in Malaysia without the administrative burden and cost of setting up a legal entity.

EOR vs. Offshore Company: Brief Comparison

When to Choose an EOR Over Incorporation

Choosing between incorporating a legal entity and partnering with an Employer of Record (EOR) depends on your business goals, timeline, and operational needs. Below are scenarios where an EOR is the more strategic and cost-effective option:

1. You Need to Hire Employees or Contractors in Malaysia Immediately

Establishing a local entity takes time due to regulatory approvals, banking setup, and statutory registrations. If you’re looking to onboard talent within days, not weeks, using an EOR allows you to bypass this delay. FastLaneRecruit can help you hire and onboard employees quickly, ensuring full compliance with Malaysian labor laws from day one.

Also Read: How FastLaneRecruit Helps Singapore Businesses Hire Top Talent

2. You Want to Avoid the Upfront Cost and Administrative Burden of Forming a Local Company

Setting up a company in Malaysia involves government fees, professional service costs, and recurring compliance requirements (e.g., filing taxes, maintaining statutory books, appointing a local company secretary). If your business is not yet ready for these financial and operational commitments, an EOR offers a leaner and more manageable alternative, allowing you to operate without the overhead.

3. You Are Running a Pilot Project, MVP Launch, or Market Test

For companies entering Malaysia to validate their product, explore demand, or run a short-term initiative, an EOR provides the flexibility to scale up or down without long-term liabilities. This is especially useful in the early stages of expansion when the business case is still being developed and refined.

4. You Want to Stay Compliant Without Building In-House HR or Legal Functions

Malaysia’s employment regulations require strict adherence to payroll processing, social security (SOCSO), pension contributions (EPF), and tax withholding. Managing this in-house requires local expertise. An EOR assumes full responsibility for these compliance matters, acting as the legal employer and ensuring that your company remains fully compliant without needing to hire a local HR or legal team.

Also Read: How to Choose an Offshore Provider for Your Business

Conclusion

Establishing an offshore company in mainland Malaysia presents a compelling strategic advantage for global entrepreneurs and businesses seeking to expand into Southeast Asia. Malaysia’s business environment is characterized by several key benefits, including the ability to own 100% of your company in most sectors, attractive tax incentives administered by governmental bodies and seamless access to the broader ASEAN Economic Community (AEC) market, one of the fastest-growing regions in the world.

Whether you choose to establish a Private Limited Company (Sdn. Bhd.), operate through a branch office, or utilize an Employer of Record (EOR) model for rapid market entry and workforce flexibility, Malaysia’s pro-business policies and competitive operating costs offer a solid foundation for sustainable growth. The country’s transparent regulatory framework and well-developed infrastructure further contribute to a smooth and efficient incorporation process, making it easier than ever to establish and scale your operations.

Moreover, partnering with experienced local professionals ensures that your business remains fully compliant with Malaysian laws and regulations, from incorporation and tax filings to employment and immigration requirements. This expert support mitigates risks and enables you to focus on your core business activities with confidence.

Expanding into Malaysia is not only achievable but also rewarding for companies ready to tap into new markets, access a skilled talent pool, and optimize their regional operations. If you are prepared to take the next step toward growing your business presence in Malaysia, collaborating with trusted corporate service providers like FastLaneRecruit will streamline your journey and maximize your chances of success in this dynamic and promising market.

Hire and Pay Malaysian Employees with FastLaneRecruit

As a trusted EOR provider in Malaysia, FastLaneRecruit ensures full compliance with local regulations and provides end-to-end support across employment contracts, payroll, MPF/SOCSO/EPF contributions, and immigration. Our experience working with global firms across multiple industries gives us a deep understanding of cross-border employment challenges and how to navigate them seamlessly.

Whether you’re planning a full-scale entry or just need to build an initial presence, FastLaneRecruit helps you make the right move, strategically and compliantly.

Ready to Expand into Malaysia?

Expanding your business into Malaysia presents a strategic opportunity to tap into one of Southeast Asia’s most business-friendly and cost-effective markets. Whether you’re establishing a long-term presence through offshore company formation or exploring a faster, low-risk entry using an Employer of Record (EOR) model, FastLaneRecruit is here to support every step of your journey.

We understand that global expansion requires more than just paperwork. That’s why our solutions are designed to help you move forward with clarity and confidence:

• Looking to incorporate a company? 

FastLane Group’ll assist with name reservation, company registration with SSM, local compliance, bank account setup, and ongoing secretarial services.

• Prefer to hire quickly without setting up an entity? 

Our EOR service lets you onboard local talent within days while we take care of employment contracts, payroll, tax compliance, and HR administration.

With deep local expertise, a strong grasp of regulatory requirements, and a commitment to global best practices, FastLaneRecruit enables international companies to scale seamlessly in Malaysia while staying compliant and cost-efficient.

Let’s discuss your business goals and identify the right strategy for your market entry.
Get in touch with us for a no-obligation consultation today and explore how we can help you build your Malaysian team faster, smarter, and with less risk.

FAQ

Is it legal to own a 100% foreign-owned company in Malaysia?
Yes, in most industries. Some sectors may have equity restrictions, but many allow full foreign ownership.

Do I need to live in Malaysia to start a business?
No, but you must appoint at least one director who resides in Malaysia.

What’s the difference between Labuan and mainland Malaysia for offshore setups?
Labuan is a special financial zone with unique tax benefits. Mainland Malaysia is better for operating businesses seeking access to the local economy and ASEAN.

What are the tax implications for an offshore company in Malaysia?

Offshore companies in mainland Malaysia are subject to corporate tax (currently 24% for foreign-owned companies) on income derived locally. However, tax incentives (e.g., pioneer status, investment allowances) may reduce liabilities. Income earned outside Malaysia is typically not taxed, but compliance with reporting requirements is mandatory.

Can I open a corporate bank account remotely?

Most Malaysian banks require at least one director to be physically present for account opening. However, some international banks or fintech solutions may offer remote options with stricter due diligence.

Are there restrictions on business activities for offshore companies?

Most sectors are open to foreign ownership, but regulated industries (e.g., banking, defense, media) may require government approvals or local partnerships. Always check with SSM or MIDA before incorporation.

How long does it take to incorporate an offshore company in Malaysia?

With complete documents, the process takes 2–4 weeks, including name approval, SSM registration, and tax setup. Delays may occur if additional licenses are needed.

Do I need to hire local employees?

No, but hiring locals may qualify you for incentives. If you employ Malaysian staff, compliance with EPF (pension), SOCSO (social security), and HRDF (training levy) is mandatory.

What’s the difference between a “nominee director” and a “local director”?

A local director is a resident who actively manages the company. A nominee director (often provided by corporate services firms) meets the legal residency requirement but has no operational role, protecting your control.

Can an offshore company in Malaysia sponsor work visas for foreign employees? 

Yes, an offshore company can sponsor work permits or MM2H (Malaysia My Second Home) visas for directors and staff.

What are the benefits of using an Employer of Record (EOR) instead of incorporating a company? 

An EOR allows you to hire employees quickly (within days) without establishing a legal entity, avoids upfront costs and administrative burdens of company formation, and handles all tax, payroll, and labor law compliance. It’s ideal for market testing, pilot projects, or rapid talent onboarding.