Immigration Pathways for Foreign Tech Founders in Malaysia

Market entry choice for founders

Founders must decide whether to incorporate a Malaysian Sdn Bhd immediately or to take a visa-first route that does not require company formation. The Digital Nomad Visa and the Malaysia Tech Entrepreneur Program permit founders to reside in Malaysia and test product‑market fit without the immediate costs and compliance obligations of a locally registered company. Those visa‑first options are suitable for market validation, investor meetings and business development where low upfront fixed costs are a priority.

By contrast, if you intend to hire staff locally, open a corporate bank account, sign binding local contracts, or apply for incentive programs such as the Malaysia Digital Program, you will typically need a Malaysian company or a local sponsor. Founders who need to employ or sponsor workers, or who require scheme-specific benefits, should incorporate early and ensure corporate and financial readiness.

Quick overview of costs if a company formation is required

Starting and operating a private limited company (Sdn Bhd) in Malaysia requires planning for one‑off incorporation expenses, recurring professional and statutory fees, and premises or registered‑address costs. The tables below summarise typical cost ranges that founders should include when modelling first‑year budgets and ongoing operating expenses.

One-time setup costs

Item	Typical range (RM)	Notes
Company secretary setup	RM1,500 to RM5,000	Digital Company Secretary offer cheaper incorporation costs, while conventional options differ based on location and service offering.
Legal advisory	RM1,500 and up	For basic documents such as shareholder agreements or tenancy agreements
Fit out costs or a permanent office space	RM50,000 and up	Highly variable depending on size, location and finish

Ongoing monthly and annual costs

Item	Typical cost	Notes
Company secretary retainer	RM60–RM120/ month	Most company secretary charge a monthly retainer
Annual audit fee	RM2,000–RM5,000/ year	Depends on revenue, transactions and record quality
Bookkeeping / tax agent	RM200–RM1,000/ month	Cost varies with transaction volume and payroll complexity
Virtual office (registered address)	~RM100 / month	Basic mail handling and registered‑address service
Co‑working private suite	RM2,000–RM10,000 / month	Location and size materially affect price

How much would your first year of company formation in Malaysia cost you?

• Cheapest realistic option in your first‑year: ~RM8.3k–RM8.8k.

• A more expensive route in your first‑year (private suite + premium services, modest fit‑out): ~RM178k–RM258k.

Immigration perspective

Visa selection directly affects what commercial activities a founder may lawfully undertake and whether immediate incorporation is necessary. The Digital Nomad Visa and the Malaysia Tech Entrepreneur Program allow founders to reside and pursue market testing without forming a company at the outset; however, these visas generally do not permit local employment or the sponsorship of other workers.

In comparison, company formation under the Malaysia Digital Program require a registered Sdn Bhd with all the set up costs we've described above. Immigration authorities will assess the Malaysian Digital company's corporate substance, including checking for a registered office, a company secretary, proper bookkeeping and payroll systems, and sufficient financial capacity. If the business plan contemplates hiring local staff, relocating founders to work onshore full time, or accessing government incentives, founders should incorporate early and ensure that the company’s governance and financial records meet immigration expectations.

Closing summary

The decision to enter Malaysia via a visa that avoids immediate incorporation or to form a Sdn Bhd at the outset is fundamentally a trade‑off between speed and regulatory runways. Visa‑first approaches reduce early fixed costs and enable rapid market validation. Incorporation provides the legal framework necessary to hire, sponsor employees and access incentive programmes, but it imposes ongoing compliance obligations such as company secretary retainers, audits, bookkeeping and premises commitments. Founders should align their market entry choice with hiring timelines, contractual requirements and funding plans, and they should treat compliance expenditures as essential investments if they intend to operate and sponsor staff in Malaysia.

Our website and its contents are provided for general information purposes only and nothing on this website or in its contents is intended to provide professional advice. Please contact us at info@migratesafe.org or +6082-295175 for more information.