While registering a Sdn Bhd in Kuala Lumpur is fairly simple, it’s only the first step to operating legally.

In this guide, we’ll walk you through the essential steps to not just register a business entity in Kuala Lumpur, but also engage in commercial activities legally, including:

• incorporating your Sdn Bhd
• appointing a Company Secretary
• opening a corporate bank account
• registering with statutory bodies
• applying for DBKL business licenses, and
• a pitch to use our company set up services!

At the end, we’ll recap all this into a simple table with time and cost estimates to help you plan and budget your new business setup. Of course, feel free to skip the guide and get in touch with us directly.

Otherwise, let’s begin.

Step 1: Company incorporation

All company incorporations in Malaysia, including Kuala Lumpur, are done through SSM’s MyCoID portal.

The requirements to incorporate a Sdn Bhd are:

• proposed company names not already in use
• a business nature description with up to three MSIC codes
• a resident director (can be a foreigner if they reside in Malaysia)
• a shareholder
• a registered address in Malaysia, and
• paid-up capital of RM2,500

Note: Although paid-up capital of RM1 is sufficient to incorporate, banks are unlikely to approve an account due to security concerns. In our experience, RM2,500 is the minimum where you won’t face any issues with opening a corporate account.

If you meet all the requirements and want to handle your own incorporation, our DIY Sdn Bhd registration guide explains how, but in summary there are four main steps:

1. Visit the MyCoID sign up page and fill in the registration form with your personal details.
2. Physically visit the nearest SSM branch within 14 days to verify your identity and activate your account. 
3. Log into your MyCoID account and complete the incorporation application.
4. Make payment of RM1,010 via MyCoID’s online payment gateway.

Processing can take up to seven working days (and potentially more) depending on the number of applications, but if all is in order, you will receive the following notice of registration from SSM via email.

Congratulations, you have now incorporated a company in Kuala Lumpur – let’s move onto the next steps.

Step 2: Company Secretary appointment

A Company Secretary or CoSec is a mandatory appointment for all Sdn Bhds in Malaysia, tasked with ensuring the company’s statutory compliance and whose key duties include:

• filing Annual Submissions with SSM
• storing company statutory documents
• keeping meeting minutes and drafting resolutions, and
• handling communications with SSM

Sdn Bhds cannot go more than 30 days without a Company Secretary, which means while appointing one isn’t urgent by law, you’ll need one to open a bank account, so don’t delay!

There are many Company Secretaries in Kuala Lumpur and while any competent provider can handle simple compliance needs, you may need an in-house partner who only handles your requirements.

Check out our guides to finding the best Company Secretary in Malaysia and our CoSec fee structures to find a compliance officer that best fits your needs.

Step 3: Bank account opening

Our guide to SME friendly bank practices shares features you want in a bank as a business owner, and frankly many banks in Kuala Lumpur fit this profile, so it’s not hard to find an SME-friendly banking partner.

Regardless of which bank you choose, prepare the following supporting documents, all of which must be Certified True Copy by your Company Secretary:

• Notice of Registration Section 14
• Superform
• Constitution (if adopted)
• Beneficial ownership information (if requested)
• Certified true copies of MyKad / passport
• Resolution of directors to open and operate the account (why you need a CoSec first!)
• Recommendation letter (if requested)

Some banks offer 100% online bank account openings for Sdn Bhds but this is always discretionary and directors of new and foreign-owned companies may need to visit the branch physically.

Once the application has been submitted, banks take anywhere from under a day to several weeks to verify the authenticity of the information, depending on the level of risk they must assess.

Step 4: Other statutory body registrations

Besides SSM, companies often register with a number of other regulatory bodies. Some of these happen automatically upon incorporation while others are only necessary if requirement thresholds are met.

At this point your Company Secretary should be able to advise you on which your company will need and haven’t done yet.

Statutory body / registration	When required	Timeline
Inland Revenue Board (LHDN)	Mandatory for all Sdn Bhd companies	Usually automatically upon incorporation but you should check
MyTax account activation	Mandatory to file taxes online	ASAP after incorporation
SOCSO (PERKESO)	Mandatory once you hire employees	Within 30 days of hiring first employee
EPF (KWSP)	Mandatory once you hire employees	Immediately when hiring employees
Employment Insurance System (EIS)	Mandatory once you hire employees	Within 30 days of hiring first employee
HRD Corp	Mandatory only if employing 10 employees and more but open to all	Within 30 days of becoming liable
Sales & Service Tax (SST) with RMCD	If you exceed taxable threshold or provide taxable services	Within 30 days of exceeding threshold

Step 5: DBKL business license applications

If your company will also operate in Kuala Lumpur (including key commercial areas like Bukit Bintang and KLCC) you will need to obtain business licenses from Dewan Bandaraya Kuala Lumpur (DBKL).

DBKL, like other Local Councils, are responsible for issuing several types of licenses and when we say ‘DBKL business license’ we are referring to all the licenses issued by them that your business will need, including:

• composite (premise + signboard) license
• entertainment license
• alcohol license
• F&B outlet license
• parking bay reservation
• more!

At the very least, you will likely need a composite license to operate in a premise and display a signboard, so check out our guide to DBKL business licenses for more information on that.

General supporting documents to prepare include:

• copy of company or business registration documents
• copy of the applicant’s identification card or passport
• premise floor plan with measurements
• location plan or street map showing the premise location
• photographs of the premise (exterior and interior)
• signboard design visual with dimensions for each word
• Dewan Bahasa dan Pustaka (DBP) approval confirming Malay language use on signboard, and
• photographs indicating the proposed signboard installation location

Bear in mind depending on your nature of business, DBKL may require valid business licenses from federal government agencies to support your composite license application.

For example, if you want to open a tuition centre in Kuala Lumpur, you need to first get an MOE license as a Private Education Institution before you can apply for a DBKL premise license.

The actual DBKL license application can be made online through their eLesen portal.

Your premise will likely need to undergo an inspection and DBKL officers often make requests for minor renovations to comply with their safety requirements, so expect this to take at least one month.

Foreigners setting up companies in Kuala Lumpur

While foreigners are free to incorporate a company in Kuala Lumpur, DBKL restricts foreign ownership from certain business activities including:

• supermarkets / hypermarkets / mini marts (Under 3000 sqft)
• grocery stores / 24-hour convenience stores
• permanent wet markets
• petrol stations
• roadside stalls
• non-exclusive clothes, shoes, and bag retail stores
• non-exclusive F&B outlets
• jewelry stores
• herbal / health products
• traditional Chinese medicine
• non-exclusive vehicle workshops
• non-exclusive glass or aluminium manufacturing
• PC and PC accessories retail stores
• furniture
• barbershops / hair salons
• Internet cafés
• phone accessories retail stores
• laundromats, and
• spas

Foreign-owned companies won’t be able to apply for DBKL licenses in these activities, so they will need to partner with a local under an incorporated joint venture.

Other than that, a company being foreign-owned doesn’t affect how its set up, so incorporation, CoSec appointment, bank account opening, and DBKL license applications proceed just the same.

The two significant differences are:

1. If a foreign business owner or key personnel is moving to Malaysia to be resident director, the company will need to apply for a Category 1 Employment Pass after incorporating.
2. If the company has 51% or more foreign shareholding, it will need either a Wholesale, Retail & Trade (WRT) or Unregulated Services Sector (USS) license before applying for Employment Passes or DBKL licenses.

Both these requirements impose significantly higher paid-up capital requirements, and from RM2,500, an Employment Pass will require at least RM250,000 and both WRT and USS licenses at least RM1 million.

Cost & time estimate for a KL company setup

Based on the above steps, expect to incur the following costs and time commitments.

Step	Estimated Timeline	Estimated Cost
Sdn Bhd incorporation	3–7 working days	RM1,010
Company Secretary	1–3 working days	RM50 – RM200 / month
Bank account opening	1 working day – 3 weeks	n/a
Statutory body registrations (EPF, SOCSO, etc)	Immediate to 30 days	n/a
Industry specific business licenses	1–2 months	Varies too significantly for estimate
DBKL composite & signboard license	1–2 months	RM400 – RM1,400+ based on business type and premise size

And remember this is just for registration – Sdn Bhd compliance requirements mean spending about RM10,000 per year in maintenance fees due to several other key appointments besides a CoSec.

If all this sounds significant, that’s because it is! But at the end of the day, it’s just the cost of doing business, so if you tally the costs against potential income and the numbers make sense, then time to take the first step and incorporate your company in Kuala Lumpur.

And of course, if you’d like assistance, the MISHU team can help you every step of the way.

Let MISHU set up your company in Kuala Lumpur

Our Kuala Lumpur company incorporation services can handle every step of setting up your Sdn Bhd from reserving names to drafting bank resolutions and applying for DBKL licenses. Get in touch today!