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Malaysia

Malaysia is ranked as the top 12th country in the world as the easiest and most friendliness in doing business by the World Bank. The current process of setting up a business entity in Malaysia is regulated under the Companies Act 2016. All matters in relation to setting up an entity is governed by the registrar of business in Malaysia, the Suruhanjaya Syarikat Malaysia (SSM), or the Companies Commission of Malaysia (CCM).

WHY OUR CLIENTS PREFER MALAYSIA

Strategic Location

  • Massive consumer demand in local and foreign Asian markets
     

  • Home to multiple special economic zones for import-export businesses

Affordable Living

  • Low start-up costs compared to other neighbouring countries
     

  • Low average monthly salary and prime office rental

Incentive

  • 68 double taxation treaties and no withholding tax on dividends made abroad
     

  • No restrictions on repatriation of profits, capital, royalties, and dividends

Language

  • English is a commonly used language in Malaysia
     

  • Constitutional law and statutory law are available in both Malay and English

INCORPORATION PROCESS AND TIMELINE

Limited Liability Company (Sendirian Berhad or SDN BHD)
Public Limited Company (Berhad or BHD)
Minimum number of directors
1
2
Minimum number of shareholders
Minimum – 2, maximum – 50
Minimum – 2, maximum – Unlimited
Local Presence (director/ shareholder/ officer)
Yes – 1 local director/ partner/ manager
Yes – 1 local director/ partner/ manager
Local Citizen Sponsorship Requirement
No
Yes
Physical registered office address requirement
No
No
Maximum Foreign Shareholding
100%
100%
Minimum Paid Up Share Capital
MYR 2
MYR 2
Security Deposit Required by Local Government
Preference Shareholder Option
Yes
Yes
Incorporation Timeline
1 month
1 month
Public Register of Shareholders and Directors
Yes
Yes
Regulator
The Companies Commission of Malaysia (SSM)
The Companies Commission of Malaysia (SSM)
Note
Can start business immediately once Company Commission of Malaysia (CCM) issue company registration certificate (Form 8)
Can be listed at BURSA through following compliance issued by Securities Commission Malaysia (SCM)
A better financial vehicle for crowdfunding
Can only start business after Company Commission of Malaysia (CCM) issue certificate to commence business (Form 23)

TAXATION AND ACCOUNTING

Limited Liability Company (Sendirian Berhad or SDN BHD)
Public Limited Company (Berhad or BHD)
Corporate Tax
24%
24%
Annual Tax Return filing
Yes
Yes
Entry to Double Taxation Treaties
Yes
Yes
GST Reporting to Local Government grants
Yes
Yes
Auditor Requirement
Yes
Yes
GST Payable for Local Sales
6%
6%
Tax Exemption Possibility
No
No
Withholding Tax on Payments to Foreign Partners
0%
0%
Security Deposits
No
No
International Currency Control on Remittance
Yes
Yes

OTHERS

Limited Liability Company (Sendirian Berhad or SDN BHD)
Public Limited Company (Berhad or BHD)
General Activity
Conventional
Conventional
Access to Residence Visa (For Owners)
Yes
Yes
Expatriate to Local Staff
None
None
Access to Government Grants
Yes
Yes
Conversion to a Public Listed Company
Yes
Yes
Local Citizen Sponsorship Requirement
No
Yes
Maximum Staffs Allowed
No limit
No limit
Option to Hire Local Staff
Yes
Yes

CORPORATE BANK ACCOUNT

Limited Liability Company (Sendirian Berhad or SDN BHD)
Public Limited Company (Berhad or BHD)
Corporate Bank Account Available
Yes
Yes
Multi-currency Option
Yes
Yes
Local Citizen Sponsorship Requirement
No
Yes
E-banking Platform Quality
High
High
Corporate Debit Cards
Yes
Yes
Bank Account Opening Timeline
1 - 2 months
1 - 2 months