7 Reasons to Choose Malaysia for Starting a Business
Updated on Monday 08th October 2018
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Malaysia is one of the most competitive business destinations in its region and it benefits from an increasing consumer demand from its neighboring countries, such as Vietnam, India or China. There are numerous reasons for opening a company in Malaysia, and the most compelling arguments are presented below. However, businessmen can also request advice from our team of specialists in company formation in Malaysia, who can offer assistance on this subject.
1. Tax reasons for investing in Malaysia
One of the most important aspects that help in the decision making process for opening a company in Malaysia or elsewhere refers to the taxation system applicable to a new legal entity incorporated on the respective territory. In terms of taxation, Malaysia offers the following benefits:
- Malaysian companies are not imposed with a withholding tax on the transfer of dividends to foreign entities;
- there are no restrictions concerning the repatriation of company’s assets – such as capital, profits, royalties and dividends;
- a local company can benefit from the tax exemptions available under the free trade agreements signed by the country with the ASEAN countries;
- at the same time, foreign companies can benefit from the provisions of the double taxation treaties signed by the country, which has concluded more than 60 agreements.
2. Malaysia, a regional hub for startup companies
Another reason for starting a business in this country is given by the fact that Malaysia is seen as a growing center for startups, being the third largest business destination in its region. A large number of startup companies registered in this country have expanded their operations in other countries in the region and our team of consultants in company registration in Malaysia can assist investors with advice on how to invest in other jurisdictions.
3. Kuala Lumpur, the center of digital economy
Regarding the activity of startup companies operating in this country, Kuala Lumpur is set out to be the top destination for digital market sector, which is rapidly expanding in this city. Due to the fact that 75.9% of the Malaysian population uses smartphones (at the level of 2017), local businesses are trying to explore the economic opportunities that could derive from this increasing trend of using digital devices by creating new products and services.
4. A wide range of Malaysian business forms
Malaysia can accommodate the needs of every type of local and foreign investor, offering numerous business forms. Foreign businessmen can set up one of the legal entities that are available here, but they can also expand a business on the local market through a branch office or a subsidiary.
5. Malaysia, a visa-friendly country
Foreign businessmen can obtain different types of visas when investing in this country. This is also applicable for a foreign director of a Malaysian business, who can obtain a visa sponsored by the company, provided that the company’s capital is above RM 500,000.
6. Malaysian workforce
One of the most important assets of a company is represented by the quality of its workforce. Malaysia offers an educated workforce, who has numerous skills that are requested by the modern business environment. A plus is given by the fact that the labor costs are lower compared to other countries in its region.
7. Malaysia, a competitive market
Malaysia is one of the most competitive markets, being one of the top destinations in terms of easiness of doing business in the World Bank’s yearly reports. Foreign businessmen can also apply for a set of incentives and businessmen can contact our team of specialists in company registration in Malaysia for information regarding this matter.