Foreign Companies Setting Up Companies in Malaysia: 8 Essential Post-Incorporation Steps from Office Search to Renovation Start

Malaysia continues to attract regional headquarters, shared service centres, tech firms, and manufacturing players from around the world. While company incorporation may already be completed, foreign companies setting up companies in Malaysia often discover that the real operational journey begins right after registration.

From securing office space to obtaining authority approvals and commencing renovation, the post-incorporation process requires structured planning, coordination with multiple stakeholders, and realistic timeline management.

This guide focuses strictly on what happens after incorporation is done - walking you step by step through office search, tenancy, authority submission, renovation approvals, and project completion.

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Overview Timeline: Post-Incorporation Office Setup in Malaysia

For a conventional office setup (bare unit), here's a practical timeline:
 

Phase	Estimated Duration
Corporate Bank Account Opening	2-4 weeks
Business License Applications (if applicable)	4-12 weeks
Office Search & LOI	2-6 weeks
Tenancy Agreement Finalization	1-2 weeks
Design Development & Drawings	2-4 weeks
Authority Submission & Approval	3-8 weeks
Renovation Works	4-10 weeks
Total Estimated Duration	3-6 months

Note: Serviced offices may shorten the total timeline to 4-8 weeks.

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1. Opening a Corporate Bank Account

Even after incorporation is completed, bank account activation is essential before operations begin.

Key Considerations

• Directors may need to attend in person.
• Some banks request a detailed business plan.
• Foreign shareholders may face enhanced due diligence (EDD)

Duration: 2-4 Weeks

Delays usually occur due to incomplete documentation or international verification procedures.

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2. Applying for Business Licenses (If Required)



Certain industries require additional approvals before operational activity can begin.

Examples of Common Licenses

• Wholesale & Retail Trade (WRT) License
• Manufacturing License
• Industry-specific regulatory approvals
• Employment Pass approvals for expatriates

Duration: 4-12 Weeks

Some licenses can run concurrently with office setup activities, which help optimize the timeline.

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3. Searching for Office Space

For foreign companies setting up companies in Malaysia, choosing the right office is a strategic decision.

Type of Office Options



A. Serviced Offices

• Fully furnished
• Minimal renovation
• Quick occupancy
• Ideal for small teams or initial market entry

B. Bare Units (Conventional Offices)

• Empty space requiring full fit-out
• Maximum customization
• Longer approval and renovation timeline

C. Tech / Incentive-Designated Buildings

For companies applying for Malaysia Digital or other incentive programs.

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What to Evaluate When Selecting an Office

• Location and accessibility
• Proximity to public transportation
• Parking availability
• Building management rules
• Renovation restrictions
• Fire safety compliance
• Floor loading capacity (for heavy equipment)

Duration: 2-6 Weeks

The search process depends on:

• Size requirement
• Budget alignment
• Internal HQ approvals

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4. Letter of Offer (LOI) & Tenancy Agreement

Once the ideal unit is selected, negotiation begins.

Letter of Offer (LOI)

The LOI typically outlines:

• Rental rate
• Lease term (commonly 3 years)
• Security deposit (2-3 months)
• Fit-out period
• Rental-free period (if negotiated)

Tenancy Agreement (TA)



The TA formalizes:

• Deposit structure 
• Permitted renovation scope
• Insurance requirements
• Handover conditions

Duration: 1-2 Weeks

Legal review by HQ may extend this stage slightly.

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5. Engaging Interior Designer & Contractor

After signing the tenancy agreement, the design and fit-out process begins.

Key Professionals Involved

• Interior Designer (ID)
• Main Contractor
• Mechanical & Electrical (M&E) Engineer
• Fire Safety Consultant
• Quantity Surveyor (for larger projects)

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Design Development Process



Step 1: Space Planning

• Workstations
• Meeting rooms
• Server room
• Pantry
• Reception area

Step 2: Technical Drawings

• Electrical layout
• Lighting plan
• Air-conditioning layout
• Fire protection layout

Step 3: Budget Finalisation

• Cost per square foot
• Material selection
• Furniture specifications

Duration: 2-4 Weeks

Larger corporate offices may require longer planning cycles.

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6. Authority Submission & Approval 

This is one of the most critical stages for foreign companies setting up companies in Malaysia. Before renovation starts, plans must be approved by relevant authorities.

Approving Bodies


 

Authority	Purpose
Building Management	Fit-out compliance
Local Council	Structural & renovation approval
Fire Department (BOMBA)	Fire safety compliance

Required Submission Documents

• Layout plans
• M&E drawings
• Fire protection drawings
• Contractor CIDB registration
• Public liability insurance
• Method statements

Approval Duration
 

Authority	Timeline
Building Management	1-2 weeks
Local Authority	2-4 weeks
Fire Department	2-6 weeks

Important: Renovation cannot legally begin until written approval is received.

Incomplete documentation is the most common cause of delay.

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7. Renovation Commencement

Once approvals are granted, renovation works can officially start.

Typical Renovation Scope

• Partition installation
• Electrical wiring
• Data cabling
• Air-conditioning installation
• Carpentry works
• Glass installation
• Ceiling and flooring
• Fire alarm system integration

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Renovation Duration by Office Size
 

Office Size	Duration
2,000-3,000 sq ft	4-6 weeks
5,000-10,000 sq ft	6-10 weeks
10,000+ sq ft	10-14 weeks

Delays may occur due to:

• Imported materials
• Design changes
• Authority re-inspections

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8. Inspection, Compliance & Handover

Before move-in:

• Final inspection by building management
• Fire compliance verification (if required)
• Rectification of defects
• Clearance letter issuance

Only after clearance can the company legally occupy the premises.

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Common Delays Foreign Companies Should Anticipate

1. HQ Approval Bottlenecks

Global companies often require internal procurement or board approval before final decisions.

2. Incomplete Authority Submission

Missing documents cause rejections and resubmission delays.

3. Bank Compliance Delays

Enhanced due diligence for foreign shareholders may extend timelines.

4. Underestimating Renovation Complexity

Even small layout changes may require revised approvals.

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Estimated Post-Incorporation Setup Costs
 

Cost Component	Estimated Range
Rental Deposit	3-6 months rental
Renovation Cost	RM100-RM250 per sq ft
Professional Fees	RM20,000-RM100,000
Authority Submission Fees	RM5,000-RM20,000

Costs vary significantly depending on building grade and design complexity.

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How to Streamline the Process

• Engage a project manager early
• Confirm building renovation guidelines before design
• Prepare complete submission documents
• Align HQ budget approval timelines
• Choose contractors experienced with multinational clients

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FAQs: Foreign Companies Setting Up Companies in Malaysia

1. How long does office setup take after incorporation?
Typically 3-6 months for a conventional office.

2. Can renovation start immediately after signing the tenancy agreement?
No. Authority approvals must be secured first.

3. Is BOMBA approval always required?
Yes, if renovation affects fire safety systems or layout.

4. What is the fastest way to start operations?
Serviced offices significantly reduce setup time.

5. Can license application run parallel with office renovation?
Yes, in many cases they can proceed simultaneously.

6. What is the biggest delay risk?
Authority submission and internal corporate approvals.

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Conclusion

For foreign companies setting up companies in Malaysia, the post-incorporation phase is where strategic planning truly matters. From office selection and tenancy negotiation to authority submission and renovation execution, each stage requires coordination, compliance, and realistic scheduling.

While the process may appear complex, it is highly manageable with experienced local advisors and clear internal decision-making. With proper planning, most companies can achieve operational readiness within 3-6 months.

Malaysia remains a stable, pro-business environment - and with structured preparation, your expansion journey can be smooth, compliant, and successful.