How to open a company in Malaysia
Our company incorporation specialists offer services of company formation in Malaysia to foreign investors who are seeking to expand their business activities in this country. Our company can provide you with assistance for the registration of different types of legal entities available in Malaysia for foreigners. With an extensive experience on the incorporation process requirements, our company formation specialists in Malaysia can facilitate the registration of a business, respecting the rules and regulations of the local legislation.
What are the main procedures for opening a company in Malaysia?
The incorporation process for setting up a company in Malaysia consists in drafting the company’s articles of association, alongside with the registration of compulsory documents; the company will be registered either as a company limited by shares or as an unlimited company. Our company incorporation specialists can offer you details related to the requirements that have to be fulfilled in order to open a company in Malaysia, such as the minimum number of associated partners, directors or company secretary and other aspects.
When opening a company in Malaysia, our company incorporation specialists can file for a proposed business name by completing a form and paying a fee of RM 30 for the proposed name (you can propose up to three names). The approval will be received from Companies Commission of Malaysia, to which the incorporation documents must be submitted no later than three months after receiving the approval for the trade name. After the documents are approved, the newly formed company will receive a Registration Certificate.
What are the main types of companies in Malaysia?
Foreign investors interested in setting up a company in Malaysia may set up several types of legal entities, which can be chosen in accordance with the capital that will be invested in the business, as well as the investors’ plans on the local market. One of the simplest ways to start a business in Malaysia is by opening a sole proprietorship. In case of this business form, the owner does not have to complete audit and annual filings requirements, but the investor will have unlimited liability for any debts the company may have.
Another type of legal entity usually employed by foreign investors is the private limited company, which is the most common way to start a business in Malaysia. This is due to the fact that the investors are liable for the company’s debts only in accordance with the share capital they have invested in the company.
In this particular case, the business form will be considered a separate legal entity. A similar business form available here is the public limited company, which generally has the same structure as in the case of the private limited company, with the difference that this entity can offer its shares to the public.
What other business forms are available for foreign investors?
Although foreign investors can set up their business operations in Malaysia by registering one of the above mentioned business forms, they also have the possibility of starting a business through a branch office or a subsidiary. A branch office is a type of company that is dependent to its parent company abroad and, according to the Malaysian legislation on the matter, the branch office may only enter the business activities that are conducted by the parent company. Investors should take into consideration that certain operations can’t be conducted through a branch office.
Unlike the branch office, the subsidiary is seen as a separate legal entity, independent from the parent company. The subsidiary can be owned 100% by foreign investors, but there are certain limitations regarding specific business activities (education, banking, tourism, agriculture). The registration of a subsidiary in Malaysia is conducted in accordance with the standard registration procedure, and starts by choosing a suitable business form.
What types of company registration services are available for foreign investors in Malaysia?
Our company formation specialists in Malaysia can further assist foreign investors by providing other types of services related to the registration of a business in this country. Foreign businessmen interested in setting up a company in Malaysia can also receive assistance on the following types of services available in this country:
- virtual office – this is a suitable service for the investors who want to establish a business presence on the Malaysian market, with reduced costs;
- accounting – our specialists can offer bookkeepping and payroll services, as well as compulsory submissions for goods and services tax;
- opening a bank account, a procedure that can be completed at any local commercial bank;
- comply with the local taxation system applicable to foreign companies, including registration for value added tax;
- consultation on the tax minimization methods or exemptions your company may be entitled to (if the company set up in Malaysia is a beneficiary of a double taxation agreement signed by the Malaysian government with a contracting state, the company will be exempt of several taxes, as stipulated in the treaty).
What are the main reasons for investing in Malaysia?
There are a number of reasons for setting up a company in Malaysia
, ranging from its competitive labor market
to its geographical location
is one of the most attractive destinations for starting a company
as the registration procedure
is very fast (approximately one week) and it is comprised of only three registration steps
Furthermore, the country ranks at the 3rd global economy
in terms of the productivity of the local workforce
and this is also a major bonus as all businesses are interested in hiring employees
with a high degree of knowledge and skills
More importantly, foreign investors can find in Malaysia
a suitable market due to the level of investor protection
, guaranteed by the local legislation (the country ranks as the 4th global economy
on this matter). In this sense, Malaysia
has attracted so far more than 5,000 foreign companies
from more than 40 countries
and many of these companies
have diversified their operations on the local market.
It is also important to know that Malaysia ranks as the 10th economy
on the foreign direct investment confidence index
, showing that the country provides suitable measures that can increase the number of foreign investors on the local market. Businessmen can also invest on the local stock market and the most popular investment vehicles
are represented by exchange traded funds
; relevant investments
can also be concluded in the real estate sector
How can investors contact our consultants?