For digital nomads and entrepreneurs, the process of starting and maintaining a company in Malaysia can feel like navigating a maze of state-imposed costs and compliance hurdles. If you’re seeking a jurisdiction that balances opportunity with manageable regulatory burdens, understanding the real numbers behind company formation and annual upkeep is essential. In this guide, we break down the average creation and maintenance costs for a standard Sendirian Berhad (Sdn. Bhd.) in Malaysia for 2025, using only the most reliable, up-to-date sources.
Company Formation Costs in Malaysia (2025): What to Expect
Setting up a Sdn. Bhd. in Malaysia is a popular choice for international founders due to its flexibility and relatively low capital requirements. However, the true cost of incorporation goes beyond the headline figures. Here’s a transparent breakdown of the typical expenses you’ll face:
| Item | Cost (MYR) |
|---|---|
| Minimum capital requirement | 1 |
| Company name reservation fee | 50 |
| Company incorporation fee (up to RM400,000 authorised share capital) | 1,000 |
| Professional/lawyer/secretarial service fees (average) | 1,200 |
| Stamp duty on constitution (if applicable) | 10 |
| Other miscellaneous government fees | 239 |
| Total Average | 2,500 |
Pro Tip #1: The minimum capital requirement is just 1 MYR, making Malaysia one of the most accessible jurisdictions for low-barrier company formation. However, professional and secretarial fees are where most of your initial outlay will go—budget accordingly to avoid surprises.
Annual Maintenance Costs: Staying Compliant Without Overpaying
Once your Sdn. Bhd. is up and running, annual compliance is non-negotiable. The state’s requirements are clear, but there’s room to optimize your spend if you know where to look. Here’s a breakdown of typical yearly costs for 2025:
| Item | Annual Cost (MYR) |
|---|---|
| Company secretary annual fee (mandatory) | 1,200 |
| Annual return filing fee (SSM) | 200 |
| Auditor/accounting fees (minimum) | 1,000 |
| Tax filing fees (minimum) | 200 |
| Other compliance costs (AGM, statutory books, etc.) | 100 |
| Optional: Higher-end accounting/audit/legal services | 2,300 |
| Total Range | 2,400 – 5,000 |
Pro Tip #2: The company secretary fee is mandatory and non-negotiable. However, you can control your total spend by choosing basic versus premium accounting and legal services. For lean operations, expect to pay closer to the lower end of the range (2,400 MYR/year).
Case Example: Lean Startup vs. Premium Service
Imagine two founders:
- Lean Startup: Handles basic accounting in-house, hires a budget-friendly secretary, and only pays for essential filings. Annual cost: ~2,400 MYR.
- Premium Service: Outsources all compliance, audit, and legal work to top-tier firms. Annual cost: up to 5,000 MYR.
This flexibility allows you to tailor your compliance spend to your risk tolerance and operational needs.
Checklist: Optimizing Your Company Costs in Malaysia (2025)
- Choose a reputable but cost-effective company secretary—mandatory, but prices vary.
- Reserve your company name early to avoid delays (50 MYR fee).
- Limit initial capital to the minimum unless higher capital is required for your business model.
- Compare professional service providers for incorporation and annual compliance—fees can differ significantly.
- Keep your statutory books and AGM minutes up to date to avoid penalties.
Key Takeaways: Malaysia’s Company Costs at a Glance
- Average company creation cost (Sdn. Bhd.): 2,500 MYR
- Annual maintenance cost range: 2,400 – 5,000 MYR
- Minimum capital required: 1 MYR
- Major cost drivers: Professional/secretarial fees and optional premium services
Malaysia’s regulatory environment in 2025 remains relatively friendly for founders who value both efficiency and autonomy. By understanding the real costs and making informed choices, you can minimize your fiscal footprint and keep more control over your business journey.
For further reading and official fee schedules, consult these authoritative sources: