Importance of Company Registration in Malaysia

Why start a business in Malaysia?

• A Malaysian LLC can be incorporated within 1 week with a minimum capital of US $2. It requires only 2 shareholders and 1 Director which must be resident of Malaysia and 1 resident company secretary
• Incorporation of the company in Malaysia is cheaper compared to Singapore in terms of labor, office rental, etc.
• It provides tax allowance and incentives to the manufacturing sector.
• It is more beneficial for tourism and hotel industries sector as it is one of the most visited tourist places.

What are the types of business entities in Malaysia?

Limited Liability Company also known as Sendirian Berhad mostly preferred by foreign entrepreneurs. It provides the entrepreneurs to trade with Malaysian customers and to hire an employee in the mainland.

Free Zone Company preferable for manufacturing and export-oriented units. Various tax benefits are provided by the government.

International Trading Company is also known as Labuan Company mainly preferred by entrepreneurs who are trading with overseas customers. The government provides a various tax-exempt vehicle for such company.

Bumiputera Company is a company where at least 30% of shares are held by a native resident of Malaysia or Bumiputera corporations. If they met this requirement than the company is eligible for special grants and discounts.

Limited Liability Partnership can be incorporated with minimum 2 partners and such partners can also be foreigners. No requirement of minimum contribution and it will be governed in accordance with Malaysia Limited Liability Partnership Act, 2012. More beneficial for foreign entrepreneurs who are looking to work on some specific project in partnership with a Malaysian company.

Branch/ Representative Office is an option available to the foreign parent company to open a branch office in Malaysia. It requires the appointment of 2 Malaysian resident representatives.

What will be the procedure of company incorporation in Malaysia?

• Application for reservation of name with Companies Commission of Malaysia
• Preparation of Memorandum and Articles of Association of the company. 
• Preparation of various documents like directors consent letter and appointment letter.
• Once all the incorporation documents are prepared the same needs to be signed by the directors and get it notarized
• All the incorporation documents are filed with SSM (Suruhanjaya Syarikat Malaysia) and then if the documents are proper than SSM will issue a Certificate of Incorporation.
• The opening of a corporate bank account in Malaysia.
• Once the bank account is opened the company registration is required to deposit the proposed share capital as prescribed in MOA by the shareholders.

What are the benefits of Company Registration in Malaysia?

• Great opportunities for foreign investors to start up their subsidiary company in Malaysia as the government provides various incentives and opportunities
• It is one of the Ideal locations for regional headquarters as it is located in the center of South East Asia
• Best for financial and investment service as it can trade and market their financial products both to corporate and retail customers
• It is one of the ideal places for starting up a manufacturing and distribution company as the availability of raw material and skilled labor is cheap compared to other countries.
• Malaysia Five export free Zones offer zero customs duties and flexible trading laws
• Pasir Gudang
• Port Klang
• Kulim Hi-Tech Park
• Port of Tanjung Pelepas
• Bayan Lepas