Can a Foreigner Sell Online in Malaysia? Sdn Bhd Requirements

Structure. The EzBiz rules of the Companies Commission of Malaysia (SSM) allow only Malaysian citizens and permanent residents aged 18 or above to be sole proprietors or partners. A foreign owner therefore normally incorporates a private company under the Companies Act 2016. The Act requires a company to have at least one director who ordinarily lives in Malaysia and a company secretary.

Equity and licensing. Rules on foreign equity in retail and distributive trade, are set by the Ministry of Domestic Trade and Cost of Living (KPDN) and other ministries, and the position can differ by product. Whether online selling is covered needs confirming: ask KPDN before applying to incorporate.

Tax effect. A company qualifies for the SME rate scale of 15%, 17% and 24% only if no more than 20% of its ordinary share capital is held directly or indirectly by foreign companies or non-citizen individuals. Above that, all chargeable income is taxed at 24%.

Consumer rules. The same 2024 disclosure rules apply to foreign-owned Malaysian companies as to local ones.

A foreigner who sells into Malaysia from abroad, without a Malaysian entity, falls under different rules covering imports and low value goods.