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The Malaysian Government’s guidelines are based on the Capital Investment Per Employees (C/E) Ratio. Projects with a C/E Ratio of less than RM55,000 are categorised as labour-intensive and will not qualify for a manufacturing licence or tax incentives, unless it fulfils one of the following criteria:

  • The value-added is 30% or more

  • The managerial, Technical and Supervisory (MTS) Index is 15% or more

  • The projects undertakes promoted activities or manufacture products as listed in the List of Promoted Activities and Products for High Technology Companies

  • Existing companies (formerly exempted) applying for a manufacturing license

    A licensed company which desires to expand its production capacity or diversification of product range by manufacturing additional products needs to apply to MIDA.



  • By an individual operating as a sole proprietor

  • By two or more (but not more than 20) persons in partnership

  • By a locally incorporated company/by a foreign company registered under the provisions of the Companies Act (CA) 1965

  • Must be registered with the Companies Commission of Malaysia (SSM) under the Registration of Business Act 1956.



  • A company limited by shares, the most common company structure in Malaysia

  • A company limited by guarantee

  • An unlimited company, a company formed on the principle of having no limit placed on the liability of its members.


An applicant must be made to the SSM using Form 13A together with a payment of RM30 (for each name applied) in order to determine if the proposed name of the intended company is available.

Incorporation documents are to be submitted to the SSM within three months from the date of approval of the company’s name:

  • Memorandum and Articulars of Association

  • Declaration of Compliance (Form 6)

  • Statutory Declaration by a person before appointment as director (Form 48A)

  • The original Form 13A

  • A copy of letter from SSM approving the name of the company

  • A copy of the identity card of each director and company secretary or a copy of passport where a foreign director is appointed.

Incorporation of local companies can be completed within one(1) day through the introduction of the single interaction counter introduced since 1 April 2010

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