Foreign contractors must register with the Malaysian Construction Industry Development Board (CIDB) before participating in any construction activities in Malaysia.
Once registered, you get a ‘Perakuan Pendaftaran Kontraktor Asing’ (Foreign Contractor Registration Certificate), which allows you to legally engage in construction projects.
In this guide, we give a breakdown of requirements and fees involved with obtaining this certification.
For readers who prefer official sources, we’ve cited the following CIDB resources:
- CIDB’s guide to registration (note: it’s in Bahasa Melayu)
- Act 520 (specifically Section 25) which covers contractor registrations
You’re welcome to read them instead, otherwise let’s begin.
Registration requirements
- Pre-registration for foreign contractors
- Business entity registration
- Minimum paid-up capital of RM750,000
- Employment of at least two Malaysian technical personnel
Supporting Documents
- Offer letter for work
- Academic degree certificates of technical personnel
- For companies registered with SSM as branch offices, financial documents from the company’s home country must be submitted.
Business entity registration
Your company will need to register a business entity with the Companies Commission of Malaysia (SSM), and as a foreigner, your main two choices are a Sdn Bhd (private limtied company) or Limited Liability Partnership.
Here’s a quick side-by-side comparison of the two.
Paid up capital requirement
Branch offices with zero paid-up capital must declare and upload financial information from its home country business registry.
Local technical personnel requirement
Both personnel must hold degrees in construction-related fields and one must have at least five years of industry experience (calculated by date the degree was awarded).
Fee and validity period
Applications will incur two fees:
- Processing fee of RM50.00
- Registration fee of RM5,000 / project
The certificate’s validity lasts from the project start to end date, plus an extra two years for defect liability.
And that’s pretty much all you need to know about CIDB registrations as a foreign contractor.
Let MISHU help with your CIDB application
If you hate browsing forms and documents, get in touch – we routinely help overseas companies obtain their CIDB credentials and we’d be happy to help you too!