Malaysia Company Registration

1. Fast registration process (within 1-3 days)

Company registration is now done entirely online through the MyCOID platform of the Companies Commission of Malaysia (“SSM”). The process takes only a few days if the expected name and information of your company is approved by SSM. You can hire us to easily solve your company registration problems, or you can apply for company registration yourself.

2. Minimum ownership conditions (1 shareholder, 1 director, RM 1 company)

All you need is 1 shareholder, 1 director and a share capital of RM 1 to form a company. Alternatively, the shareholder and the director can be the same person. Of course, it is not practical to run a company on RM 1 alone, but that is all you need to set up a company and you can increase the share capital later. Likewise, you can introduce new shareholders at a later time (private limited companies can have up to 50 shareholders) and appoint more directors.

3. excellent location and infrastructure

Malaysia prides itself on its political and economic stability, being located in the heart of Southeast Asia, with Kuala Lumpur being the central hub for financial institutions and having free trade zones in Port Klang, Jubilee and Payamba, just to name a few. Malaysia also has an excellent nationwide transportation network and a strong communications infrastructure to support your business.

4. Easy access to credit and purchase of property

Commercial operators have access to a wide range of financial support from commercial banks, financial institutions and even venture capital firms that are willing to provide loans and capital investments for your business, and it is relatively easy for local Malaysian companies to purchase or rent real estate.

5. low rent, operating (utility) and labor costs

All in all, you can save money in the long run by setting up your business in Malaysia compared to other countries/regions in the region because you can enjoy lower office and housing rentals, competitive utility rates and lower labor wages.

6. low corporate tax and no double taxation

Corporate tax is fixed at 24% (17% for small and medium sized enterprises with less than RM2.5 million paid up capital) and personal income tax is subject to a maximum rate of 30%. If you are a foreign business owner, you will benefit from the double taxation incentive in your home country as Malaysia has signed many double taxation treaties with other major countries around the world.

7. tax incentives for specific industries

Local companies can apply for various sector-specific tax incentives in Malaysia, which are usually used for investments in manufacturing, agriculture, tourism (including hotels) and approved service sectors as well as research and development, training and environmental protection activities. Direct tax incentives may be in the form of partial or full income tax exemptions for a specific period of time, while indirect tax incentives take the form of exemptions from import duties, business taxes and excise taxes.

8. government incentives to encourage business formation and investment

The Malaysian government focuses on promoting local businesses, start-ups, SMEs and foreign investment in the country through the implementation of various tax exemptions, grants, funding and investments in facilities to benefit local businesses.

9. Local and overseas talent pool

Malaysia continues to develop a strong pool of local talent from its reputable public and private educational institutions to meet a wide range of business needs, and with a large pool of expatriate talent, it is relatively easy to secure the services of foreign workers in Malaysia.

1、Partnership
 In Malaysia, a partnership is a business owned in the name of an individual who is a Malaysian citizen; it can be formed by one person or no more than 20 persons to Malaysian Companies It is the cheapest and simplest form of company in Malaysia. There is no annual report and the Malaysian Business Act does not require the operator to audit the accounts or hire a secretarial firm. Profits earned by the company need to be reported as personal income tax.
 Advantages of a registered partnership: simple procedures, low registration fees, cheaper registration fees, and simple business decisions.
 Disadvantages of registered partnership : bear unlimited personal responsibility, all partners need to jointly bear the debt, according to the personal tax return, need to pay higher tax, can not carry out equity financing, can not apply for loans from banks.
 2、Partnership with limited liability
 Partnership with limited liability, at least two owners, no upper limit, can be Malaysian citizens or foreigners, no audit but need to provide annual report.
 Limited partnership is more suitable for small and medium-sized enterprises, especially in the service industry or small and medium-sized stores.
 Advantages of limited partnership: Limited liability, the company’s debts must be repaid by the company’s assets, creditors cannot ask the company’s partners to bear the debts, and the company can continue forever, even if the founder leaves the company, the company will still exist.
 Disadvantages of limited liability partnership: new thing, relevant laws are not perfect, unable to carry out financing and loans; all partners have the right to manage the enterprise, when there is a situation of inconsistent decision making, it will lead to the stagnation of the enterprise.
 3、Private Limited Company
 A private limited company, also known as a Sdn Bhd, is the most common type of business entity in Malaysia, with 1 to 50 owners. The liability of the company and the shareholders are separate, and the liability of the shareholders is limited to the amount paid by them, and the shareholders can be Malaysian citizens or foreigners. A private limited company may borrow, purchase, lease, contract, own property and real estate in the name of the company, but does not involve the names of the shareholders. Generally speaking, a private limited company is the most common choice of business entity for expatriates in Malaysia.
 Advantages of a private limited company: limited liability, perpetual continuity, the company will exist even if the founder leaves the company, the company is divided into directors and shareholders and the permissions and responsibilities of both are clear, enjoys a fixed tax rate, has annual reports, can apply for government grants, allows equity financing and more financing options.
 Disadvantages of a private limited company: the company must pay a secretary’s fee, annual reports are required, mandatory auditing of accounts, the decision-making process is cumbersome, and decisions must be made through the board of directors or shareholders’ meeting.

The registration of a Malaysian company is relatively simple and requires the following documents: at least two shareholders, at least two directors appointed, and a lower registered capital of RM2. It generally takes 1-2 weeks to set up a Malaysian company, no need to go in person, the whole process is handled on behalf of the company, the following is the registration process:

1、Confirmation of shareholders and directors: The time required is expected to be 1-2 business days.

2、Prepare the company name and verify the name, and specify the registered name of the company: the time required is expected to be 1-2 working days.

3、Prepare the application documents for incorporation: the time required is estimated to be 1-2 working days.

4、Signing the company registration application file: the time required is estimated to be 1-2 working days.

5、Malaysia Company Registration Committee submits the application for company registration: the time required is estimated to be 1-2 working days.

6、Successful company registration: All shareholders and directors will meet and have a briefing on company law, accounting, income tax, sales tax, service tax, employee-related laws and regulations, and obtain all documents for company registration and bank account opening.