Forming a Company in Malaysia

Forming a company in Malaysia is an ideal way to operate in the expanding Malaysian economy.

Forming a company in Malaysia can take advantage of the double taxation treaties Malaysia has signed with 65 countries (see the Inland Revenue Board of Malaysia website).

100% foreign ownership is permitted when forming a Company in Malaysia. Corporate directors are also allowed when forming a company in Malaysia.

When forming a company in Malaysia, a withholding tax of between 10% and 20% is levied. For more information, go to Tax Planning in Malaysia.

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When forming a company in Malaysia, a Company pays corporation tax of 28% on Malaysia-sourced income.

It is possible easy to open a corporate bank account after forming a company in Malaysia.

Under Section 145 (1) of the Malaysia Companies Act 1965, every Company must have two resident directors.

After forming a company in Malaysia, an annual tax return and audited financial statements must be submitted.

With laws regarding certain types of companies being relaxed in line with the Malaysian Government’s efforts to attract foreign investment, forming certain types of company is now easier. 100% foreign control in wholesale fund management firms is now allowed. The limit in foreign ownership for unit trust companies has been increased to 70%, and this limit for stock brokerages will be increased to from 49% to 70%.