Malaysia Company Registration

An Overview of Malaysia Company Registration

Malaysia Company Registration 1. A Malaysia business (LLC) must have two         directors and shareholders; the director           needs to either be a citizen or resident;

2. The shareholders in a Malaysian business       can either be individuals or corporations;

3. Resident businesses can be 100% foreign       owned and can be incorporated in any             business sector;

4. For starting a business in Malaysia, entrepreneurs must have a registered office in the country;     a virtual office is also permitted;

5. The minimum share capital to incorporate a resident LLC is RM 2;

6. Director(s) and shareholder(s) don’t have to travel to Malaysia to open a corporate account;

7. For setting up a Malaysian company, a secretary must be appointed; the company secretary         needs to either be a citizen or resident;

8. After the receipt of the notarized documents, the process of business setup can be completed       within 5 days;

9. Corporate profits are taxed at a rate of 25%. A value added tax (VAT) at 18% is, also, charged;

10. Malaysian businesses benefit from massive consumer demand in local and foreign Asian               markets like India, China, Myanmar, Singapore and Vietnam;

11. A resident Malaysian business faces low startup costs compared to Singapore; Malaysia’s             monthly office rental per m2 (US $17) and wage rate (US $2,310) are less than Singapore’s           (US $68 and US $3,245);

12. A resident firm benefits from country’s 68 double taxation treaties which minimize withholding         tax on fund transfers abroad;

13. There is no withholding tax levied on dividends made abroad by Malaysia businesses;

14. Malaysia businesses face no restrictions on repatriation of capital, profits, dividends and               royalties;

15. A resident business profits from the free trade agreements signed between Malaysia and 6          other ASEAN countries;

16. Malaysian businesses enjoys duty free trade through free ports in Pasir Gudang, Port Klang,         Kulim Hi-Tech Park, Port of Tanjung Pelepas and Bayan Lepas;

17. An offshore firm can be legally tax exempt in the federal territory of Labuan;

18. A Malaysia business can sponsor a visa for its director if the share capital exceeds RM                   500,000;

19. World Bank has ranked Malaysia as the 6th easiest place in the world to do business in their         2013 report;

20. The country is positively ranked as the 25th most competitive economy in the world.

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