The following article provides a clear overview of the average company formation and ongoing compliance costs for a standard private limited company (Sendirian Berhad, Sdn. Bhd.) in Malaysia for 2025. All data presented is based on official government sources and specialist firm summaries.
Company Formation Costs in Malaysia (2025)
Establishing a Sdn. Bhd. in Malaysia is relatively straightforward from a cost perspective compared to many global jurisdictions, with no high initial capital requirements and transparent government fee schedules.
| Cost Item | Amount (MYR) | Amount (USD)* |
|---|---|---|
| Minimum capital requirement | RM1 | $0.21 |
| Company name reservation fee | RM50 | $10.48 |
| Company incorporation fee (up to RM400,000 authorised share capital) | RM1,000 | $209.61 |
| Professional/lawyer/secretarial service fees (average) | RM1,200 | $251.54 |
| Stamp duty on constitution (if applicable) | RM10 | $2.10 |
| Other miscellaneous government fees | RM239 | $50.12 |
| Total estimated average | RM2,500 | $523.04 |
*USD conversion based on an average 2025 exchange rate of 1 USD = 4.78 MYR.
These figures represent the average outlay required to set up a standard Sdn. Bhd. in Malaysia. The minimum paid-up capital remains symbolic, at only RM1 ($0.21).
Annual Maintenance & Compliance Costs
Operating a compliant Malaysian company requires ongoing secretarial, accounting, and filing activities. Below is a breakdown of the minimum to maximum annual maintenance costs for 2025.
| Cost Item | Amount (MYR) | Amount (USD) |
|---|---|---|
| Company secretary annual fee (mandatory) | RM1,200 | $251.54 |
| Annual return filing fee (SSM) | RM200 | $41.92 |
| Auditor/accounting fees (minimum) | RM1,000 | $209.61 |
| Tax filing fees (minimum) | RM200 | $41.92 |
| Other compliance costs (e.g., AGM, statutory books) | RM100 | $20.96 |
| Optional: Higher-end accounting/audit/legal services | RM2,300 | $482.11 |
| Estimated annual total (min – max)* | RM2,400 – RM5,000 | $503.07 – $1,048.05 |
*Annual cost varies with complexity and professional service choices. All costs in addition to government compliance fees.
Key Observations
- Secretarial services are mandatory and represent a major component of ongoing costs.
- Accounting and audit fees can range substantially depending on transaction volume and adviser selection.
- All companies must file annual returns and maintain compliance with the Companies Commission of Malaysia (SSM).
For a comprehensive view, the majority of Sdn. Bhd. entities can expect annual running costs (excluding optional higher-end professional services) at the lower end of the quoted spectrum, provided there are no unusual compliance requirements or business complexities.
Reference Sources (Official)
Pro Tips for Managing Company Costs in Malaysia
- Scrutinize professional service fees: Always compare quotes from several corporate secretarial and accounting providers to ensure you receive market-rate pricing for routine services.
- Keep statutory documents current: Timely filing of annual returns and maintenance of company records can help avoid government penalties and unnecessary legal costs.
- Maintain a simple company structure: The more streamlined your management and compliance needs, the lower your recurring costs are likely to be.
- If eligible, leverage digital tools: Many firms now offer cloud-based compliance, accounting, and payroll solutions that can further reduce professional fees.
Malaysia remains a cost-effective jurisdiction for both company formation and ongoing compliance, with clear, predictable government fees and competitive professional service markets. The minimum paid-up capital is token, keeping entry barriers low. However, regular attention to secretarial and reporting obligations is essential to avoid compliance lapses or additional costs. For those seeking efficient company setup and well-managed annual requirements, Malaysia offers a transparent, business-friendly environment in 2025.