IMC | Malaysia Company Formation

MALAYSIA

Malaysia is a federal constitutional monarchy located in Southeast Asia. It consists of thirteen states and three federal territories. Peninsular Malaysia shares a land and maritime border with Thailand and maritime borders with Singapore, Vietnam, and Indonesia. Supported by a market-oriented economy and pro-business Government policies, Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits. For the company formation in Malaysia, the government established the Malaysian Industrial Development Authority (MIDA) in 1967. Malaysia must date attracted more than 5,000 foreign companies from more than 40 countries to establish their operations in the country.

Company Incorporation in Malaysia

  • Sendirian Berhad (SDN BHD) is a private limited company formation in Malaysia, where it prohibits any invitation to the public to subscribe to any of its shares, deposit money with the company for investment or subscription. The Minimum members in a private limited company are TWO (2) and maximum is FIFTY (50).
  • Berhad (BHD) is a public limited company formation in Malaysia where its shares can be offered to the public for fixed periods and any other forms of subscription. The minimum number of members (shareholders) are two (2) and maximum of unlimited number of members.
  • The “Partnership” business entity is a joint-entity holder with two or more persons to carry out a legal business in Malaysia. The Companies Commission of Malaysia requires that partnership entities MUST comprise of at least two (2) members and a maximum twenty (20) members.

 Licensing in Malaysia

  • Business Licensing Electronic Support System (BLESS) is a portal that provides information and facilities for companies to apply licenses or permits to start operating business in Malaysia. It is a virtual One Stop Service Centre that assists companies to obtain business licenses efficiently and in an organized manner.

 ACCOUNTING AND TAX

  • Foreign Companies in Malaysia incur a corporate tax rate of 25% of net profit under US$ 1,450,000 and 30% of the net profit over US$ 1,450,000. Companies are only taxed on the profits generated from their business activities in Malaysia.

Type Limited Liability Company (WLL)
Access to Malaysia double tax treaties Yes
Type Sendirian Berhad (SDN BHD Under Malaysia law, foreigners can own 100%
Minimum Share Capital Yes
Manager MYR 0 (SDN BHD
Directors Minimum one
Shareholders Minimum Two
Memorandum and Articles of Association Yes
Can the entity hire expatriate staff in Malaysia Yes
Secretary Yes
Tax Registration Certificate Required Yes
Statutory audit required Yes
How long to open Corporate Bank Account One week
Timeframe for Incorporation: 10-14 weeks
Annual Return Yes
Annual Tax Yes
Access to Malaysia double tax treaties Yes

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