Malaysia Company Formation

Malaysia company formation assists entrepreneurs to legitimately conduct business in Malaysia and the Asia Pacific region. The most common form of company for foreign investors is the Sendirian Berhad (Sdn Bhd) private limited company. The following information helps determine whether Malaysia company formation is the optimum corporate structure to fulfill international business objectives.

Malaysia company formation is simple and cost-effective. According to the 2010 Doing Business Survey by the World Bank, Malaysia is the world's 23rd easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

A Malaysian company accesses double taxation treaties with almost 50 countries, including the world’s leading economies (see the Inland Revenue Board of Malaysia website).

Malaysia is positively ranked as the 24th most competitive economy in the World Economic Forum's Global Competitiveness Report 2009-2010. Furthermore, In its 2009 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks Malaysia as the world’s 18th most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure.

The OECD has recognised Malaysia as having substantially implementing the required tax related standards and hence placed the jurisdiction on the 'white list'.

In order to attract and maintain foreign investment, some laws in regards to foreign ownership are being relaxed in Malaysia. The foreign ownership limit of stock brokerages is to be increased to 70% from 49%. There can now be 100% foreign control in wholesale fund management firms. The limit for unit trust companies has also been increased to 70%.

As Malaysia company formation requires approval from specific regulatory authorities when foreign ownership is involved, Malaysia is perceived negatively as the world’s 59th freest economy in the Heritage Foundation’s 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

A Malaysian company pays 27% corporate profits tax on all income. Furthermore, a Malaysian company is subject to a withholding tax of up to 20%. Following Malaysia company formation, annual audited financial statements and a tax return are submitted to the Malaysian authorities. Every Malaysian company is required to appoint an auditor approved under the Malaysia Companies Act. Healy Consultants will assist our clients efficiently and effectively to complete this annual statutory obligation.

A minimum of two directors and two shareholders is required with Malaysia company formation. The directors must be resident in Malaysia. A register of directors is available for public inspection following Malaysia company formation.

Malaysia is negatively perceived as the world’s 56th least corrupt country, according to the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.

Malaysia ranks a negative 63rd on the United Nations Human Development Index, which rates a country on its overall life expectancy, literacy, education and living standards.