Company Formation in Malaysia

Glance at Company Formation in Malaysia

Malaysia formulated the regulatory framework for business entities to be governed by the Companies Commission of Malaysia, referred to as the Suruhanjaya Syarikat Malaysia (SSM). Here, you need to submit an application to the concerned authority to know whether the proposed name is available or not. The required necessary papers, such as a memorandum and an Article of Association with statutory declarations and other required forms, need to be prepared accordingly. The minimum requirement is that one director and one shareholder must be appointed. It is necessary to have a registered office address in Malaysia. Now, you need to submit the incorporation necessary papers before the SSM, and you will get a certificate of incorporation upon approval. Here at Enterslice, our experts will offer a seamless experience through the entire process of Malaysian company incorporation. Our intent is to provide you with a new Malaysian company to be ready to commence your business operations within a certain period of time. We provide company formation in Malaysia services, including appointing Malaysian resident directors, company secretaries, and registered addresses, opening corporate bank accounts, license applications, and annual accounting and tax services.

Company incorporation in Malaysia

Company incorporation services in Malaysia are a straightforward process that involves various steps. Firstly, the company name is required to get approved by the Companies Commission of Malaysia (SSM). As the name gets approved, the necessary incorporation necessary papers, including the company constitution and statutory declaration, need to be prepared accordingly and submitted before the SSM. The company is required to appoint at least one director who is a Malaysian native, as well as a company secretary. Moreover, the company should have a registered office address in Malaysia. As these steps are complete and all the necessary necessary papers are supposed to be submitted before the SSM, then the concerned authority will review the application, and if it is in order, then issue a certificate of incorporation. It is necessary to know that certain industries, such as banking and finance, require additional approvals from concerned industry regulators. However, the company incorporation process in Malaysia can be difficult without the proper guidance and expertise, which can be achieved efficiently.

Essential Points for Company Formation in Malaysia

Some important things that you have to keep in mind while engaging in company formation in Malaysia are given under

Foreign Ownership

Foreigners are permitted to own 100% of shares subject to some restrictions in Malaysian companies within the specific industries.

Local Director

One director required for company formation in Malaysia must be a native of Malaysia, meaning either a Malaysian citizen or a foreigner having a Malaysian work visa.

Taxation

Malaysia follows a territorial taxation system. Tax is imposed on companies from income derived from Malaysia.

Eligibility Criteria for Company in Malaysia

You have to follow some eligibility criteria for your company formation in Malaysia which are listed below

Number of Directors to set up a company in Malaysia

Private Limited Company: At least one resident director who ordinarily resides in Malaysia is required.

Public Limited Company: At least two resident directors are required.

Resident Company Secretary to incorporate a company in Malaysia

Each company within Malaysia must have a qualified company secretary who should be a citizen of Malaysia or reside in Malaysia.

Minimum Capital Requirement for Company Formation in Malaysia

There is no such requirement to have a paid-up capital for company formation in Malaysia. In case, the work permit is issued to foreign employees, 100% of foreign-owned companies must commit to 100% of paid-up capital. The amount of paid capital is decided on the basis of enterprise activity where the company is engaged.

Types of Companies Structures for registering your company in Malaysia

The following types of business models are available for company formation in Malaysia

Sole Proprietorship

A sole proprietorship company can be easily formed in Malaysia. It requires a single owner and the owner's liability is unlimited within the sole proprietorship business model. The debts or obligations under the proprietorship are settled through the personal income or assets of the owner.

Private Limited Malaysia Company

A private limited company is a separate legal entity which means such private limited Malaysia Company is free to buy or sell its property, go into legal contracts, sue, or get sued.  The owners want liability limited to the amount contributed to the company. The owners' assets shall not be touched during insolvency or bankruptcy.

Public Limited Malaysia Company

A public limited company is basically the one company, whose shares are offered to the general public. These companies are listed on the stock exchange and are fully governed by the Securities Commission of Malaysia.

Branch or Representative Office

Foreign companies who aim to explore the Malaysian business market can set up a representative office. A representative office does not enjoy any independent legal stature. Therefore, the parent company shall be liable for all its debts and liabilities. A branch or a representative office is an extension of a foreign parent company.

Unlimited Company

An unlimited company attributes unlimited liability to its members and shareholders. It means that in case of any loss or the same company falls under debt, then the members and shareholders will be personally liable and responsible.

Limited Liability Partnership

A limited liability partnership has both the features of a partnership and a company. A partnership is a corporate body that possesses a separate legal entity. It was established under the Limited Partnership Act, of 2012.

Partnership

A partnership is formed when two or more people combine to generate profit from their commercial activities. A partnership can have partners who must be citizens of Malaysia only. A partnership is suitable for auditors and lawyers. The partners have unlimited liability. Taxes are imposed individually on partners and not on the partnership.

Reliable company formation Services in Malaysia

Client Focus

Enterslice puts great emphasis on client focus. We prioritize the needs and complaints of our clients when offering any business service.

Timeliness

Enterslice is particular about time management, as it is vital on the road to personal success and even more critical in the management of any business. We attend to all client's needs to surpass the agreed timelines.

Adaptability

Enterslice has the unique quality of adapting to different levels of management and business environments. We believe that the synchrony created by business services can catapult an organization to great success.

Tax Structure and Company Formation in Malaysia

The standard corporate tax for resident companies within Malaysia is 24% of the chargeable income. Non-resident companies are required to pay a flat rate of 24% on their Malaysia-sourced income. The standard corporate tax for resident companies within Malaysia is 24% of the chargeable income. Non-resident companies must pay a flat rate of 24% on their Malaysian-sourced income. Various types of taxes within Malaysia including the corporate income tax, withholding tax, sales and service tax capital gains tax, and many more. Withholding tax is generally imposed upon the specific types of payment made to non-residents, such as including dividends, interest, royalties, and technical fees.

Malaysia entered into DTAAs to prevent double taxation. This agreement relieves the double taxation including dividends, interest, and royalties. Malaysia featured the transfer pricing regulations to ensure the transactions held between related entities are conducted at arm's length prices. Companies are required to prepare the transfer pricing Paper works to ensure compliance with specific regulations. Real property gains (RPGT) apply to gains that emerged after the disposal of real property in Malaysia. The rates can vary depending on the holding period and other factors.

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How to do company formation in Malaysia?

Our team has outlined the various steps for company formation in Malaysia

Choose a business structure for company registration in Malaysia

Choose an appropriate business structure from the available business structures that suit your needs. However, you need to analyze your business activities, requirements, and long-term business goals before choosing.

Pre registration requirements for company registration in Malaysia

You must meet specific pre-registration requirements based on the selected business structure. Some pre-registration requirements include appointing one resident director and registering a local office address. You must prepare necessary papers such as the articles of incorporation, business plan, company constitution, and personal information of directors and shareholders.

Reserve your preferred business name

You need to check whether the name you choose is available or not. You are supposed to navigate the Suruhanjaya Syarikat Malaysia (SSM) online system to find the availability of such names.

Company registration in Malaysia: An easy process

To proceed with the business registration, all the necessary papers you prepare must be submitted to the SSM Registrar of Companies. When the registration is complete, Enterslice will assemble the Certificate of Incorporation and other incorporation necessary papers and courier them to the registered address.

Open a corporate bank account after company registration in Malaysia

Post incorporation of the business, a corporate bank account has to be opened with a reputable bank. We will offer our extensive banking network to help you open a corporate bank account for your company. There are several existing banks in Malaysia with whom we worked previously, such as Maybank, RHB Bank, and Standard Chartered Bank.

Meet all the post registration requirements

To start a business within Malaysian territory, you need to apply for the relevant business licenses. It is compulsory to register your company with the concerned Inland Revenue Board of Malaysia for taxation purposes.

Staying Compliant after company registration in Malaysia

Our experts at Enterslice will ensure that your business abides by government policies. We will help you prepare your tax returns, financial statements, etc., on a regular basis.

Incentives for Foreign Investors for company formation in Malaysia

Malaysia facilitates a wide range of attractive incentives to encourage foreign capital investment. These incentives bring economic development, support critical industries, and improve the business environment.

Companies in Malaysia are granted pioneer status enjoying a full or partial exemption from the end of the Malaysian government in terms of income tax for a specified period. Moreover, investment tax allowances may be granted depending upon qualifying capital expenditures. Specific industries including high-tech manufacturing, biotechnology, and information technology receive targeted tax incentives to enhance growth and innovation. Malaysia entered various DTAs with so many countries to avoid or prevent double taxation on income, offering relief for foreign investors. Specific industries or projects are eligible for exemptions under customs duties and sale tax on imported machinery, equipment, and raw materials.

Skilled Workforce & Company Formation in Malaysia

Malaysia owes a well-educated and skilled workforce, considering one of its strengths to attract foreign investment and economic development. The Malaysian education system is comprehensive and added with both the contribution of public and private institutions. The country remarks its place as a strong emphasis on education. English is prominent among all the government, business, and educational institutions in Malaysia. English makes an easy effort for international companies to communicate and collaborate with local populations. Malaysia has created its space in technical and vocational education and other training programs to enhance the skills of individuals in different industries. The multicultural environment of Malaysia is attributed to a diverse multilingual workforce.

Services offered by Enterslice for company formation in Malaysia

If you are wondering why you should consider company formation in Malaysia then we have mentioned the benefits of our corporate services for you

Highly Professional and Reliable Team

When dealing with a professional team, everyone needs to have a professional and reliable team that ensures a smooth and successful experience, whether it relates to company formation in Malaysia or its compliance, or may be related to other business services. We are here to serve you.

Deep knowledge and understanding of local rules and regulations

Enterslice has a profound experience and knowledge of local rules and regulations in company incorporation, compliance, and business consulting.

Strong Connection with Thailand Authorities

Enterslice has a strong connection with Thailand authorities, which is a valuable asset for businesses in Thailand. Our strong connection with Thailand authorities facilitates smoother interactions, and complaints with the regulatory norms, and contributes to positive relations with the government agencies to streamline your business operations.In case, you have any problems or seeking answers to your questions, connect with us. We are here to provide you the immediate expert help for your company registration in Malaysia.

Challenges of Company Incorporation in Malaysia

There are some challenges that you may encounter during your company incorporation in Malaysia

Complex Regulatory Environment

Malaysia's regulatory framework can be perceived as complex. Navigating various regulations and compliance requirements, especially for specific industries, may pose a challenge.

Foreign Ownership Restrictions

There may be restrictions on foreign ownership in specific industries in Malaysia. Especially for retail, distribution, and services businesses, there may be limitations on the level of foreign equity participation.

Local Director Requirement

Malaysian law requires at least one company director to be a natural person who is ordinarily resident in Malaysia. This local director requirement can be a challenge for foreign entrepreneurs.

Benefits of Company Formation in Malaysia

The benefits of company formation in Malaysia have been mentioned hereunder

Political Stability

Malaysia has a history of political stability, creating a conducive environment for business operations and investment. Malaysia is ranked the 51st least corrupt country worldwide, as per the Corruption Perception Index reported by Transparency International.

Robust Legal Framework

Malaysia has a well-established legal framework that provides clarity and protection for businesses. The Companies Act governs company incorporation and operations. The legal system in Malaysia is a combination of English Common Law, Islamic Law, and customary law.

Diverse Economy

Malaysia has a diverse and resilient economy with strengths in various sectors, including manufacturing, services, technology, and natural resources. The service sector is a significant contributor to Malaysia’s economy.

Global Connectivity

Malaysia has made significant strides in enhancing global connectivity, especially in transportation, telecommunications, and internet infrastructure. Malaysia has modern airports and seaports, facilitating global connectivity for businesses engaged in international trade.

Company Incorporation services in Malaysia Provided by Enterslice

We at Enterslice provide you with the following services for your company incorporation in Malaysia

Company Registration in Malaysia

Enterslice assists with the entire company registration process, including preparing and submitting necessary necessary papers to the Companies Commission of Malaysia (SSM).

Advisory Services for Company registration in Malaysia

Enterslice provides advisory services on the most suitable business structure based on your needs and goals.

Licenses and Permits after Company Registration in Malaysia

Enterslice identifies and assists with the application for any specific licenses or permits required for your business activities.

Post Incorporation Support after Company Registration in Malaysia

Enterslice provides support and guidance after the incorporation process, such as advice on corporate changes, mergers, and other corporate actions.

necessary papers required for Company Formation in Malaysia

The necessary papers required for Company Formation in Malaysia are as follows

• Copy of a Malaysian IC or passport in case of a Malaysia resident shareholder and director
• Copy of a passport and a copy of residential address proof like residential phone bill, utility bill, cable TV bill, tax bill, or bank statements in case of non-resident shareholder and director.
• copy of the certificate of registration, current extract of company particulars from the Registrar of Companies, Copy of the company's constitution and approval from board resolution regarding the incorporation of the Malaysia company, and proposed shareholding in case the shareholder is a corporate entity.

Our Success Story in Company Formation in Malaysia

We have 10+ years of experience in Company Formation in Malaysia and other legal compliances. We are a global network of legal consultants, and our journey is full of success stories that we have achieved through these years by making hassle-free company formation in Malaysia. We provide quality service, which results in client satisfaction. We streamline your company incorporation process, making it easier for our clients to understand.

Why choose Enterslice for company formation in Malaysia?

Our foreign business incorporation desk has successfully provided company formation services in Malaysia to our clients. We are known for our

Quality Service

At Enterslice, we are committed to providing our clients with top-notch services, ensuring that their business needs are met with precision and accuracy. Our team of dedicated professionals goes above and beyond to deliver exceptional results.

Client Satisfaction

Your satisfaction is our priority. We aim to meet your expectations by understanding your needs, addressing your concerns, and providing personalized solutions. We value your trust and work tirelessly to ensure your complete satisfaction.

Continuous Improvement

We believe in constantly evolving and improving our services to stay ahead of the curve. Our team stays updated with the recent industry trends and best practices to provide you with innovative solutions that drive success.

Ease of Doing Business & Company formation in Malaysia

Malaysia has undertaken various initiatives to improve the ease of doing business there. Regulatory efficiency, business registration processes, access to credit, and the overall business environment influence the ease of doing business. The Malaysian government has implemented initiatives to enhance the ease of doing business. These initiatives often involve regulatory reforms, digitalization of processes, and streamlining procedures. Efforts have been made to simplify and expedite the business registration process. Online platforms and digital services are increasingly used to facilitate the registration of businesses. Malaysia has implemented tax incentives and fiscal policies to attract investments. Efforts have been made to simplify tax procedures and improve the overall tax environment for companies.

Taxation and Fiscal Policies for company formation in Malaysia

Malaysia has a well-established taxation system and fiscal policies to promote economic growth, attract investment, and support various sectors. The taxation framework in Malaysia is governed by the Inland Revenue Board of Malaysia (IRB) and different tax laws. Malaysia has implemented tax incentives and fiscal policies to attract investment. Efforts have been made to simplify tax procedures and improve the overall tax environment for businesses.

No language Barrier for company formation in Malaysia

Malaysia is known for its linguistic diversity, and language is generally not a significant barrier for many people, particularly in urban areas and business environments. The country recognizes Malay (Bahasa Malaysia) as its official language, but there is widespread proficiency in English, which is widely used in business, education, and government. Many Malaysians are fluent in English, commonly used in workplaces, government, and educational institutions. In addition to Malay and English, Chinese and Tamil are spoken by significant portions of the population, reflecting the multicultural nature of Malaysia.

Talk to the Malaysia company formation experts

If you're considering business registration in Malaysia, it's crucial to seek advice from the experts. Malaysia company formation experts can guide you through the entire process, from registering your business to navigating the country's legal and financial requirements. By consulting with professionals who understand the local business landscape, you can ensure that your company is set up for success in Malaysia.