Bangga Malaysia
2026 Edition · Malaysia Company Formation

Set up your Malaysian company — guided in English & Japanese, from Kuala Lumpur

Sdn Bhd (local company), Labuan IBC (international company at 3%), or a hybrid of both. We cover the full picture — entity choice, substance requirements, CFC rules, transfer pricing — and handle incorporation, banking and work visas end-to-end. All our fees are fixed in Japanese yen.

1,000+companies incorporated (group total)
1,300+audits supported (group total)
3% / 24%Labuan / Sdn Bhd corporate tax
JPY-fixedfees, no FX surprises

Three ways to incorporate in Malaysia

🏢 Sdn Bhd (local company)

Malaysia's standard private limited company. 100% foreign ownership allowed, SSM registration in 7–10 business days, corporate tax 17–24%. Best for doing business inside Malaysia and for Employment Pass sponsorship.

¥660,000 incorporation, tax-inclusive

Sdn Bhd guide →

🏝 Labuan IBC (international company)

Malaysia's midshore jurisdiction: 3% corporate tax on trading profits with substance, 0% for pure equity holding, dividends free of withholding tax. Best for international services, trade and investment.

¥1,200,000 full package, all-inclusive

Labuan guide →

🔄 Hybrid (Sdn Bhd + Labuan)

Combine local credibility and bank access (Sdn Bhd) with the low international rate (Labuan). Typically worthwhile from roughly ¥30M+ annual revenue.

Custom quote free consultation

Hybrid guide →

Why Malaysia

Quick comparison

Sdn Bhd (Malaysia)Labuan IBC (Malaysia)SingaporeHong KongDubai (UAE)Japan
Corporate tax17–24%3% / 0% / 24%*17%8.25–16.5%9%~30%
Dividend tax (personal)0% (2% above RM 100K)0% / 2%0%0%0%~20%
100% foreign ownershipYes (sector limits)YesYesYesYesYes
Work visa via the companyEmployment PassLabuan Work PassEP (high bar)Visa schemesVarious visa schemes
Japanese + English support by BanggaYesYes

* Labuan: 3% on trading profits only while substance requirements are met (2+ full-time employees and industry-specific annual OPEX of RM 50K–200K); pure equity holding 0%; if requirements are not met the normal 24% applies. Sources: LHDN, Labuan FSA, PwC Tax Summaries 2025.

Important — for Japan tax residents (provisional translation): If you remain a tax resident of Japan, Japan's Controlled Foreign Company rules (anti-tax-haven rules, Act on Special Measures Concerning Taxation Art. 66-6 / 40-4) can attribute the profits of a low-taxed foreign company directly to you, taxed in Japan at up to roughly 56% — even without any dividend. In that case the Labuan 3% rate gives no benefit and can result in a higher overall burden. We always confirm residency and CFC exposure with partner licensed international-tax accountants before you commit.

How we work — 5 steps

  1. Free 30-minute consultation (Google Meet / LINE / WhatsApp) — goals, tax position, visa needs.
  2. Structure proposal — Sdn Bhd / Labuan / hybrid, with a fixed-yen quote and total-cost simulation.
  3. Incorporation — SSM (7–10 business days) or Labuan FSA (about 4–6 weeks) through our licensed partners.
  4. Corporate bank account — Maybank / CIMB / HSBC and others, typically 2–4 weeks.
  5. Visas & operations — Employment Pass or Labuan Work Pass, then annual accounting, audit and compliance.

Start with a free 30-minute consultation

Tell us about your plans for incorporating in Malaysia. English and Japanese support, from our Kuala Lumpur office.