- Basic taxation for setting up
a company in Malaysia
- Information for Company
Formation in Malaysia
- Southeast Asia Company Registred
Malaysia’s infrastructure improvement since the opening of 1986 to attract foreign investment, it has successfully attracted a large amount of foreign investment to invest in manufacturing. In the past, it relied on the commodity economy such as rubber, tin and transformed the manufacturing and technology industries. In recent years, it has gradually paid attention to the development of the service industry. According to the foreign country distinction, Japan is Malaysia’s largest foreign investor; followed by the United States and Singapore, while Taiwanese businessmen rank fourth in Malaysia’s foreign investment.
The main projects for foreign investment in 2011 are motor electronics, basic metals, chemicals, and their products, food manufacturing, petrochemical products, and metal casting products. In addition to rubber, Malaysian exports include electronics, wood products, palm oil, and palm oil products, oil and gas. Imported products include electronics, machinery, petroleum products, plastics, automobiles, iron and steel, and chemicals. Major trading partners include China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Thailand, and the United States. Set up a company in Malaysian has the following agencies in the local area, and is
responsible for foreign investment in Malaysia.
- Malaysian Industrial Development Authority, MIDA.
The Malaysian Industrial Development Authority is responsible for promoting the development of the Malaysian industry. It is responsible for issuing licenses for local manufacturing licenses, tax concessions, and preferential tariffs on raw materials and parts machinery and equipment.
- Foreign Investment Committee, FIC.
The Foreign Investment Committee was established in 1974 to manage foreigners’ purchases of assets, company shares, mergers and acquisitions in Malaysia.
From the experience of rising world housing prices, real estate buying in the capital, Kuala Lumpur, is at a critical moment in the domestic market. The best location in Malaysia, the capital of Kuala Lumpur, can see the objects of the Gemini Building, the sum of various favorable conditions, conservatively estimated that house price increases are 10%-15%, and the rental return rate is about 6%-8%. Like the Xinyi Project Area, Kuala Lumpur is Malaysia’s international special zone, with a rental rate that ranks third in Asia (GPG 2010), and the price level is lower than Taiwan and its neighbors! After obtaining the government approval letter, you can purchase a house in Malaysia, the time deposit rate (currently about 2.5% per annum), and you can apply for Malaysian residency for 10 years. Malaysia’s economic growth slowed from 5% in 2015 to 4.2% in 2016. The International Monetary Fund expects Malaysia’s GDP to grow by about 5.4% in 2017. From 2016, consumer prices in Malaysia rose by 2.1%, and the central bank lowered its policy rate by 0.25% to 3% at its July 2016 meeting. Foreign direct investment absorbed by Malaysia increased from RM39.4 billion(approximately US$10.1 billion) in 2015 to RM47.2 billion (approximately US$11.4 billion) in 2016. The investment mainly comes from Hong Kong, the United States, Singapore, Japan and the Mainland of China.
Basic taxation for setting up a company in Malaysia
Information for Company Formation in Malaysia
- Corporate Income Tax
All incomes of companies operating in Malaysia are subject to corporate income tax. The tax rate is based on the company’s turnover.
l Annual turnover of RM499,999 or less, tax 20%.
l Annual turnover of RM500,000 or more, tax 25%.
- Personal Income Tax
The income of Malaysian tax residents, including overseas income and income earned by non-tax residents during their work in Malaysia, are subject to income tax.
l Tax residents are subject to a progressive tax rate of 0% to 26% and may be exempted from compliance with relevant regulations.
l The annual turnover of RM500,000 or more, tax 25%.
| 1. The name of a company
The name of a company established in Malaysia can be
registered in English or Malay. The company name
usually ends with “SDN.BHD Pte Ltd”. SDN is the
abbreviation of Malaysian Sendirian, which means
“private”. BHD is an abbreviation for Berhad, which
| 2. Registered capital
The minimum registered capital of a company established
in Malaysia is RM100,000. If you need to apply for a
foreign work visa, you need at least RM350,000.
The registered capital can include purchase, freight,
liquidity, rent collateral, etc.
Southeast Asia Company Registred
|3. Shareholders and directors
Any investor can serve as a shareholder of the company.
At least one of the company’s shareholders is not limited.
Shareholders can also serve as directors. However, the
Malaysian government requires foreign investment
companies to have two local directors (or foreigners with
a visa of more than six months).
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