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
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Massive consumer demand in local and foreign Asian markets
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Home to multiple special economic zones for import-export businesses
Affordable Living
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Low start-up costs compared to other neighbouring countries
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Low average monthly salary and prime office rental
Incentive
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68 double taxation treaties and no withholding tax on dividends made abroad
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No restrictions on repatriation of profits, capital, royalties, and dividends
Language
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English is a commonly used language in Malaysia
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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 |