Content
Taipei
TEL:+886-2-2557-5607
Taichung
TEL:+886-4-2320-2793
Shanghai
TEL:+86 21-6090-4391
Shenzhen
TEL:+86 755-83176807
Southeast Asia Company
Malaysia Company
Registration
Malaysia Company Registration
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.
I.Introduction to business in Malaysia
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.
II.Types of companies in Malaysia
- All businesses registered in Malaysia must be established through the Companies Commission of Malaysia, a statutory body established under the Act to oversee corporate bodies and business affairs in Malaysia.
- The Companies Commission of Malaysia is locally known as the Malay variant of its name, Suruhanjaya Syarikat, commonly known as SSM.
- For foreign companies to set up companies in Malaysia, most of them choose to register Sendirian Berhad (Sdn Bhd). Sdn Bhd is a private company limited by shares. It is an independent legal entity that can earn income, own property, and sign contracts.
- Since the update of the Companies Act 2016 came into effect, foreign capital can hold 100% of the shares, with a maximum of 50 shareholders, but at least one director must be a local director in Malaysia.
III.Wholesale and Retail Trade License (WRT)
The most common license foreigners need is the Wholesale Retail Trade Licence.
This license is applicable to companies with more than 50% foreign ownership. If they operate wholesale, retail, franchising, suppliers, commission agents including international trading companies, etc., they need to report to Kementerian Perdagangan Dalam Negeri Dan Hal Ehwal Pengguna (KPDNHEP) apply for a WRT license to operate.
If more than 50% of the shares of a Sdn Bhd company are owned by local Malaysian citizens, the company can be exempted from applying for a WRT license. There are four types of WRT licenses that need to be renewed every 2 years then they can operate in Malaysia:
- Retail, trade (import and export), distribution trade.
- Malaysia Restaurant Wholesale and Retail Trade WRT License.
- Franchise business.
- Service and Consulting.
Foreigners in the above industries are required to obtain a WRT license and subsequently, apply for a work permit at the Immigration Office for any foreigner (director or shareholder or employee).
IV.Basic corporate tax
- Corporate Income Tax:
All income of companies operating in Malaysia is subject to corporate income tax.
The tax rate is based mainly on the company’s income:
(1).17% of annual taxable income below RM600,000.
(2).24% of annual taxable income above RM600,000.
Malaysia adopts a territorial income tax system. A company, whether resident or not, should be assessed for income generated in Malaysia.
The general corporate tax rate for residents and non-residents is 24%.
Companies with paid-up capital below RM2.5 million are taxed at 17% for the first RM600,000 and 24% for the portion over RM600,000.
- Personal income tax:
Domestic and overseas income of Malaysian tax residents and non-tax residents in Malaysia Income earned while working in West Asia is subject to income tax.
(1).Tax residents can be exempted according to the progressive tax rate of 1% to 30%, and those who meet the relevant regulations can be exempted.
(2).Non-resident individuals are taxed at a flat rate of 30% of their taxable income.
V.Malaysia company registration required documents
Company Name
The name of a company established in Malaysia can be registered in English or Malay, and the company name usually ends with SDN.BHD. SDN is the abbreviation of Sendirian in Malay, which means “private”. BHD is the abbreviation of Berhad, which means “company”.
Registered capital
The minimum registered capital for setting up a company in Malaysia is 100,000 MYR. If you want to apply for a foreign work visa, you need at least 1 million MYR. The registered capital must be in place, and it must be in place if you want to actually operate locally. (the registered capital can include purchases, freight, working capital, rent mortgages, etc.).
Shareholders and Directors
Any investor can be a company shareholder with at least one. Shareholders can also serve as directors. However, the Malaysian government requires that foreign investor companies must have two local directors (or foreigners with visas for more than six months).
Inter Area Company Business Services
- Professional offshore investment company registration.
- Work pass assistance for expats.
- Company license registration.
- Provide real estate investment consulting.
- Local business permit application.
With many years of practical industrial and commercial experience of entity companies, Inter Area can pay attention to and serve customers not only the basic entity company registration but also the complete consultation from company establishment, application document production, local industrial and commercial registration to follow-up accounting service agency.
Inter Area provides customers with a one-stop service, so that investors can truly aim to do business in the local area, and can put themselves in the local place to pay attention to various industrial and commercial affairs for customers so that investors can invest with confidence and focus on business market development.