Malaysia is an independent country located in Southeast Asia. It consist of two large regions called East Malaysia and West Malaysia. East Malaysia occupies the southernmost territories of Malay Peninsula and borders on Thailand and has sea borders with Indonesia and Singapore. West Malaysia occupies the northern part of Kalimantan island with adjacent islands, borders on Indonesia and Brunei and also has a sea border with the Philippines.
The main sectors of Malaysian economy are: natural resource extraction (oil, brown coal, gold, tin, bauxite, iron, tungsten, copper), finance and banking, electronics, automotive industry, tourism and medical tourism.
The official and national language is Malaysian. The capital and the largest city of Malaysia is Kuala Lumpur. More than 32,2 million people lives in this country.
If you are looking for a promising jurisdiction with good conditions for an international business then registering a company in Malaysia and opening a business account with Malaysian bank will be the right decision.
Pros of doing business in Malaysia
There are a lot of benefits of setting up a company in Malaysia. The main of them are:
- Malaysia's economy is the third largest in Southeast Asia and the 38th largest economy in the world;
- The country has a highly developed industrial, agricultural, tourism and banking sectors (27 commercial banks, 15 investment banks and 16 islamic banks);
- Malaysia has strong trade relations with USA, Singapore, Thailand, Japan, Indonesia, Hong Kong, China and South Korea;
- The country has more than 50 DTA with European, Asian and Arabic countries.
Also, opening a company in Malaysia has such advantages:
- Modern transport system;
- 4 Free Zones and a High-Tech Park;
- Flexible tax system;
- Great opportunities for the development of all types of businesses;
- Fast & Easy incorporation process.
There are two most popular business entity types in Malaysia: Sendirian Berhad (SDN BHD) or Private Limited Company and Berhad (BHD) also known as Public Limited Company.
If you would like to launch a startup in this jurisdiction then setting up a Sendirian Berhad will be the best choice for the conduct of international business.
Those, who are planning to register a company in Malaysia remotely (SDN BHD) should implement the following conditions of Suruhanjaya Syarikat Malaysia (SSM):
- Unique company name;
- Minimum 1 director, 1 shareholder and a manager;
- Paid up capital – 1 million MYR for 100% foreign ownership or 400 thousands MYR for joint ownership with resident partner;
- Obtaining of the appropriate business license and industry license;
- Filing an annual tax return and financial statements;
- Public register of directors and shareholders.
Malaysian companies are subject to the following taxes:
- Tax on corporate profits – 24%;
- Custom duties – 8%;
- Petroleum income tax – 38%;
There is no WHT on royalties, dividends and interest payments.
How to set up your own business in Malaysia
Registering a Sendirian Berhad or Berhad in Malaysia usually takes 1 week. Qualified YB Case staff will provide you with advice on licensing, opening a corporate account with a bank of Malaysia, registering a local Malaysian office, and support in the preparation of a package of required documents.