What is an Employer of Record (EOR) in Malaysia?
A plain-English guide to how EOR works in Malaysia, when to use one, and how it compares to setting up a Sdn Bhd.
An Employer of Record (EOR) is a local company that legally employs workers on your behalf, so you can hire in a country without setting up your own entity.
How EOR works in Malaysia
When you hire through an EOR like employerofrecord.my, the EOR signs the employment contract with your hire under Malaysian law (the Employment Act 1955). They become the legal employer of record while your team directs the day-to-day work.
The EOR handles:
When to use an EOR
EOR is ideal when you want to:
EOR vs setting up a Sdn Bhd
Incorporating a Sdn Bhd takes 2–3 months and requires a resident director, company secretary, MYR 1 paid-up capital (in practice more), monthly statutory filings, and ongoing audit. EOR removes all of that — you can be paying your first hire in under a week.
Bottom line
If you want to hire compliantly in Malaysia without the legal, tax and HR overhead, EOR is the fastest, lowest-risk path. Talk to us at employerofrecord.my and we'll have your first hire onboarded in days.