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2022-06-10 |
【4 mins Read】OneStart Weekly - Malaysia Company Formation

Company formation (Global) – Malaysia

Located at the heart of South-East Asia, Malaysia is part of the intergovernmental organization ASEAN. Malaysia is the third-largest trade bloc in the world and offers you easy access to the 650 million large market. Malaysia is one of the central financial hubs in the South-East Asia region, ranking the 18th in the World Bank 2016. Therefore, if you wish to invest in the Asian market, incorporation in Malaysia is a perfect choice!

The infrastructure in Malaysia is excellent and connected Malaysia to the rest of the SE Asia. The highway access connected Malaysia to other financial hubs in SE Asia, like Thailand and Singapore, all along the peninsula. Such international sea and air connections provide easy route for goods and services delivery. The rental rates and the start-up costs are relatively lower than its neighboring countries. Multinational corporations set up their factories and offices in Malaysia, for the efficiency this may offer.

The growing consumer power in Malaysia has attracted more investors recently. The Malaysian government supports foreign investors with numerous policies and incentives, a 100% foreign-owned company is allowed to be incorporated by foreigner to build a financial sector within Malaysia. There are also no restrictions on repatriation of capital, profits, royalties and dividends. Malaysia also has double taxation treaties with 68 other countries, which granted it a more competitive ground in the global business market. Take the initiative and challenge yourself to be one of the pioneers!

With most Malaysian speaking English, incorporation in Malaysia allows easy recruitment of workforces. The legal practices are established based on the British system, which is similar with Hong Kong. Therefore, it would be easier for investors to understand the laws and requirements put forward by the Malaysian government. OneStart Business Centre understands your concern, and that even though legal papers are written in English, the legal language might still be difficult to understand. This might become traps you might fall into. OneStart Business Centre worries about possible fraud that might haunt you, therefore, let’s get to know more about the requirements of setting up a Malaysia company.

 

Nationality of the director and shareholder is unlimited; however, they must be of 18-year-old or older. They should not be bankrupted or been convicted and imprisoned for the past 5 years. Other further incorporation requirements are as follows:

l  At least 2 shareholders and 2 directors

l  At least 1 company secretary

l  Must have a registered address in a Malaysian company office

l  Minimum authorized share capital is 3,00MYR

 

OneStart Business Centre can help you with documents preparation for filing application to the Malaysia registrar. All you have to do is to provide us with the requested information, and we would proceed to prepare the following documents for you to check and sign. To incorporate your Malaysia company, there are some necessary documents you will need to have in hands:

l  Copy of passports of shareholders and directors

l  Equity distribution information

l  Verification copy of company registration certificate/verified copy of foreign company registration

l  A verified copy of the foreign company charter and the statute/memorandum and charter/other methods used to define its charter

l  The appointment of the charter or the power of attorney of the authorized person in Malaysia

 

Once we have received the signed documents, we would be able to send out your application to the Malaysia Registrar for filing. The duration of the process would depend on how long the Malaysia Registrar would need to investigate your case, but usually with OneStart Business Centre’s help, within 2 months your registration would be finished.

After successful company formation, your will have your newly incorporated Malaysia company. Under the Malaysian taxation system, there are few types of tax, you might be subjected to:

l  Corporate tax: for companies with paid-up capital of less than RM2.5million, the first tax rate of RM500,000 is 20%, and the following income is taxed at a rate of 24%.

l  Profit tax: for profits not more than RM26,501 per year, the national profits tax rate is 1%-26%, and a foreign nationals’ tax rate is fixed at 26%.

l  Import tax: for import duty on industrial products. A preferential tariff of 0-5% is imposed between Malaysia and the ASEAN countries.

l  Export tax: for export of resource products including crude oil, logs, sawn timber and crude palm oil. Such export tax are set with varied rates.

 

To compete in the global market, there are a lot of different entry points, and Malaysia is one of the recent most popular choices. You might start to be confused as to which destination is the best fitting site for incorporation. Stay tuned! We will come back to this later, and fill you in with the criteria in choosing the best destination for your incorporation. In the meantime, OneStart Business Centre always encourage our readers to phone in, and feel free to ask our consultants any questions! Don’t hesitate and take the chance now!

Interested in OneStart Business Centre’s Company Formation Services? Phone in to our hotline 3575 6888 or WhatsApp our helpful consultants!