How Much Does It Cost to Set Up a Sdn Bhd in Malaysia 2026?
Many first-time entrepreneurs focus on the SSM registration fee (RM1,010) and think that's the total cost. In reality, the SSM fee is just the beginning. The real cost of running a Sdn Bhd includes mandatory ongoing expenses that most people don't account for — company secretary, accounting, tax filing, and potentially audit fees.
For a typical small business with revenue below RM500k, expect to spend RM4,500-6,500 in the first year and RM3,500-5,500 annually from year 2 onwards. These are the minimum compliance costs even if your business generates zero revenue. Understanding this “maintenance cost” is critical before deciding to incorporate.
SSM Registration Fee Malaysia 2026
The SSM (Suruhanjaya Syarikat Malaysia) incorporation fee for a Sdn Bhd is RM1,010. This is a one-time fee that includes:
| Fee Component | Amount |
|---|---|
| Name search/reservation | RM10 |
| Incorporation (via MyCoID2) | RM1,000 |
| Total SSM Fee | RM1,010 |
The fee is the same regardless of your share capital amount. Whether you incorporate with RM1 or RM1 million in share capital, the SSM fee remains RM1,010. The name reservation lasts 30 days and can be extended once.
Company Secretary Malaysia — Fees & What They Do
A company secretary is mandatory by law for every Sdn Bhd. They are not an admin secretary — they are a licensed professional (LS or MAICSA qualified) responsible for your company's legal compliance.
Setup Fee: RM500–RM1,500
One-time fee covering: preparation of incorporation documents (Memorandum & Articles), filing with SSM, obtaining Certificate of Incorporation, setting up statutory books and registers.
Annual Retainer: RM1,200–RM2,400/year
Ongoing fee covering: filing annual returns with SSM, maintaining statutory registers, preparing board resolutions, filing changes (directors, address, shares), ensuring Companies Act compliance, and organising AGM (if required).
Most small businesses pay RM150-200/month for company secretary services. Shop around — prices vary significantly. Online company secretaries like Mishu, Foundingbird, and SecretaryAsia often offer competitive rates for startups.
Sdn Bhd vs Sole Proprietor — Which Is Right for You?
This is the most common question for Malaysian entrepreneurs. Here's a decision framework:
Choose Sdn Bhd if:
- Annual revenue exceeds RM100k
- You want limited liability protection
- You plan to raise funding or take investors
- You need credibility for contracts/tenders
- You have business partners
- You want lower tax rate (17% vs up to 30%)
Stay Sole Prop if:
- Revenue is below RM100k/year
- You want minimal paperwork & cost
- You're a freelancer or part-timer
- You don't need to raise external funding
- Business risk is low
- You want to test a business idea first
Tax breakeven point: At approximately RM150,000-200,000 in annual profit, the Sdn Bhd corporate tax rate (17%) becomes more favourable than personal income tax. Below this level, the compliance costs of a Sdn Bhd may outweigh the tax savings.
Cheapest Way to Set Up a Sdn Bhd in Malaysia
If you want to minimise costs, here's the budget setup:
Budget Sdn Bhd Setup (First Year: ~RM4,500)
- RM1 share capital (no difference in SSM fee)
- SSM incorporation: RM1,010
- Basic company secretary package: RM800 setup + RM1,200/year retainer
- Company stamp: RM200
- Use your home address (no virtual office needed)
- Basic accounting: RM200/month = RM2,400/year
- DIY tax filing or use a basic tax agent: RM800/year
- Skip audit (if eligible for exemption)
Sdn Bhd Annual Maintenance Cost — What Most People Miss
The biggest mistake new Sdn Bhd owners make is underestimating the ongoing costs. Even with zero revenue, you still need to pay for:
| Annual Obligation | Cost Range | Mandatory? |
|---|---|---|
| Company Secretary | RM1,200 – RM2,400 | Yes |
| SSM Annual Return | RM50 | Yes |
| Tax Filing (Form C) | RM800 – RM2,000 | Yes |
| Accounting / Bookkeeping | RM2,400 – RM6,000 | Recommended |
| Audit (if required) | RM2,000 – RM5,000 | Conditional* |
| Virtual Office (if needed) | RM600 – RM1,800 | Optional |
| Total Annual Range | RM3,000 – RM8,000+ |
*Audit is mandatory if company exceeds 2 of 3 thresholds: revenue > RM2.5M, assets > RM1M, or 30+ employees.
Key takeaway: A dormant or zero-revenue Sdn Bhd still costs RM2,000-3,000/year just for secretary and tax filing. If you're not ready to bear this ongoing cost, consider starting as a sole proprietor first and converting to Sdn Bhd when your revenue justifies it.