Malaysia is located in the southern part of the Malay Peninsula, with a population of nearly 19 million. Malaysia is a developing multicultural economy. As a capitalist country, Malaysia’s economy grew rapidly in the 1990s and was one of the “Asian Tigers,” becoming a diverse and attractive new industrial country in Asia and one of the world’s emerging economies.

Malaysia’s domestic politics and security are relatively stable, making it one of the safest countries in the world and providing a stable business environment for most foreign investors.

EsinBiz, as an international business service agency, can provide complete solutions for company registration and operations in Malaysia, supporting the development of your business in Malaysia.

Company Registration Requirements in Malaysia

  1. Minimum of 1 shareholder, who can be an individual or a corporate entity
  2. Minimum of one qualified director aged above 18 years old. Foreign nationals can serve as independent directors, but must have an address in Malaysia. We can provide this service for you
  3. Minimum paid-up capital of only RM1 (RM10,000 is recommended for foreign investors)
  4. Minimum of one company secretary; we can provide this service
  5. A valid local registered address to receive all correspondence and notifications. We provide a valid local address

Registration Documents:

  1. Company Name – Can provide 1-3 alternative names, the name must be in English and end with SDN BHD (SDN BHD means private limited company, the type of company we recommend)
  2. Paid-up Capital – Minimum of only RM1 (RM10,000 is recommended for foreign investors)
  3. Business Scope – No word limit, can list 3 types of activities (e.g. for product trading, clearly write down 3 main product names, do not directly write “international trading”)
  4. Copies of passports and ID cards of shareholders and directors. If the shares are owned by a company, also provide the company deed, articles of association, letter of appointment of company representative, board of directors’ decision, etc.
  5. Provide contact information and email addresses for shareholders and directors.

Complete Guide to Registering a Company in Malaysia:

  1. Fill out the registration form.
  2. Provide the personal details of the director and shareholders.
  3. Search for the company name.
  4. Submit the registration after the details have been confirmed.
  5. Registration usually takes 3-5 business days.
  6. After the company is established, we will issue your company’s establishment documents, including business licenses and other necessary documents
  7. After successful registration, we will arrange an appointment for you to open a corporate bank account. If you are overseas, some banks offer remote verification and account opening services. Opening a bank account usually takes 4-8 weeks.

The Malaysian government offers investment incentives, so it is important for companies registering in Malaysia to understand these tax policies in order to reduce their tax burden.

Malaysia’s direct tax incentives provide full or partial income tax exemptions for a certain period, while indirect incentives include exemptions from import duties, sales tax, and local taxes.

1. Multimedia, Software, and Information Industry

Investors can apply for Multimedia Super Corridor status. Once approved, companies are entitled to a 100% tax exemption for a minimum of five years.

2. Manufacturing Sector

The main incentives for manufacturing investment include New Industry status and investment tax rebates. Companies granted standard New Industry status are entitled to a partial tax exemption for five years, with a 30% tax rate applied to their legal income.

3. Agricultural Sector

The main incentives for agriculture include partial tax exemptions for companies that produce agricultural goods that have an impact on new industries or are involved in such activities. A 30% tax rate applies to income earned over a five-year period.

Registering a Malaysian company not only serves as a foundation for expanding into the ASEAN market, but also offers highly favorable tax policies. The simple registration process, convenient corporate banking requirements, multi-currency support, and liberal foreign exchange policies are key factors that attract many investors to establish Malaysian companies. If you would like to learn more about the requirements and details of registering a Malaysian company, please consult our advisors for further information!

  1. Stable financial environment
  • The Malaysian government implemented a fixed exchange rate system with strict controls on foreign currency outflows. As economic conditions improved, the government shifted to a managed floating exchange rate system, significantly loosening foreign exchange controls to create an environment conducive to foreign investment.
  1. Foreign Exchange Control System
  • Foreign companies registered in Malaysia can open foreign currency accounts at local commercial banks for international commercial payments. Foreign currency entering or leaving Malaysia requires permission. There is no special tax imposed on foreign currency sent out of Malaysia. Foreign nationals entering or leaving Malaysia are required to report to customs if they are carrying currency in excess of US$10,000 or the equivalent in other currencies. Foreign nationals working in Malaysia may remit their entire after-tax income overseas.
  1. Banking Institutions
  • Major local commercial banks in Malaysia include: Bank Negara Malaysia, CIMB Bank, Public Bank, Hong Leong Bank, and RHB Bank.
  • Major foreign banks operating in Malaysia include: Citibank, HSBC, Standard Chartered Bank, Bank of America, Deutsche Bank, Oversea-Chinese Banking Corporation, and branches of Bank of China and Industrial and Commercial Bank of China.
  • Major local banks that have significant cooperation with domestic Chinese banks include: Bank Negara Malaysia, Hong Leong Bank, and CIMB Bank.
  1. Key Trading Partners
  • Malaysia’s key trading partners are China, Singapore, Japan, the United States, and Thailand. Malaysia is a significant investment destination for the Belt and Road Initiative in East Asia.
  1. Mendorong Investasi Asing
    Pemerintah
  • Malaysia mendorong investasi asing di sektor manufaktur, di mana modal asing telah menjadi pendorong utama pertumbuhan ekonomi. Investasi asing di sektor manufaktur Malaysia terutama terkonsentrasi di industri elektronik dan barang listrik, logam dasar, bahan baku kimia dan produk kimia, petrokimia, serta pengolahan makanan.
  • Sepuluh sumber utama investasi asing di sektor manufaktur Malaysia adalah Amerika Serikat, Korea Selatan, Singapura, Jepang, Tiongkok, Belanda, Jerman, Inggris, Hong Kong, Tiongkok, dan Belgia.