Malaysia Business formation

International entrepreneurs choose Malaysia business formation as a way to conduct business in Malaysia and the Asia Pacific region. The government of Malaysia offers various incentives to those considering Malaysia business formation. Healy Consultants assists Clients considering investing in Malaysia with a range of services. The following information will help you determine whether investing in Malaysia meets your objectives.

To support Malaysia business formation for international entities, the country has signed double taxation treaties with 68 countries.

Malaysia business formation is an ideal way to operate in Malaysia.

Malaysia business formation attracts withholding tax of between 10% and 20%. View tax planning in Malaysia for further information.

Under Malaysia business formation law, 100% foreign ownership is permitted. However, under Section 145 (1) of the Malaysia Companies Act 1965, two resident directors are required to set up a company in Malaysia. It is not possible to set up a company in Malaysia using corporate directors.

Healy Consultants will open a corporate bank account to support Malaysia business formation.

Following Malaysia business formation, the company is required to submit an annual tax return and audited financial statements.

Under Malaysia business formation law, a company pays corporation tax of 28% on Malaysia-sourced income.

Further considerations for those who set up a company in Malaysia include incentives for investing in Malaysia. Consistent economic growth and infrastructure development continues to spur interest in investing in Malaysia, and the government actively encourages foreign investment in a wide range of sectors by offering various incentives for those who want to set up a company in Malaysia. Some of these incentives for investing in Malaysia include:

Those who set up a company in Malaysia to promote or are involved in the production of promoted products in areas of new and emerging technologies, qualify for both the Pioneer Status and Investment Tax Allowance incentives;

Those who set up a company in Malaysia that is a small-scale manufacturing company with shareholders' funds not exceeding RM500,000 and holding at least 60% in equity are eligible for the Pioneer Status and Investment Tax Allowance incentives;

Following company set up, entrepreneurs investing in Malaysia in certain industries can avail from tax incentives. At present, these industries include emerging technologies, technology-rich projects which require large capital investments as well as small-scale manufacturers. Healy Consultants can provide professional advice on the tax advantages of investing in Malaysia.

Those who set up a company in Malaysia and are granted Pioneer Status enjoy a 5-year partial exemption from the payment of income tax; applications received from companies located in the “Eastern Corridor” of Peninsular Malaysia will enjoy a 100% tax exemption on their statutory income during their 5-year exemption period;

Those who set up a company in Malaysia and are granted the Investment Tax Allowance (ITA) get an allowance of 60% on qualifying capital expenditure (such as factory, plant, machinery or other equipment used for the approved project) incurred within five years from the date on which the first qualifying capital expenditure was incurred;

Income derived from outside Malaysia and remitted to Malaysia by resident companies (except those involved in the banking, insurance, air and sea transportation business), non-resident companies and non-resident individuals are exempted from tax;

Successfully investing in Malaysia remains a challenge, not least because of the bureaucracy and restrictions of business which still exist. Investing in Malaysia therefore requires the inside knowledge of experts who understand the country's business culture well, and can advise on the best strategy to set up a company in Malaysia. Healy Consultants assists Clients who are considering investing in Malaysia with a wide range of pre and post-incorporation services which include:

Before Malaysia business formation, Healy Consultants can arrange a tailored orientation programmer in Malaysia. Our orientation programmes typically include familiarisation tours of key points of business interest in the country, industrial parks, as well as government ministries and other useful services.

To set up a company in Malaysia, the correct corporate structure is required to achieve successful investing in Malaysia. Healy Consultants can advise on and engineer a structure to meet your exact needs.

Opening a Malaysia corporate bank account is crucial to supporting the activities of entrepreneurs who wish to set up a company in Malaysia. Healy Consultants can assist in opening a corporate bank account either in Malaysia or in another jurisdiction, according to your needs.

One of the keys to successfully investing in Malaysia is developing a reliable network of business contacts and service suppliers. Healy Consultants has, over the years, established an impressive Client base in Malaysia and the region, across a wide range of industries. Subject to their mutual agreement, we are able to provide introductions to key businesspeople in Malaysia to help entrepreneurs set up a company in Malaysia.

For entrepreneurs planning to move to Malaysia to oversee their investments having set up a company in Malaysia, Healy Consultants can help provide a comprehensive relocation service. Working with a leading relocation agent in Malaysia, we can assist with all aspects of the move. Services include: obtaining employment and residence visas for the investor and his/her family; employment and residence visas for staff; introductions to real estate agents; introductions to banks for mortgages, personal bank accounts etc; and assistance with locating a suitable school for family.

Other support services provided by Healy Consultants to entrepreneurs investing in Malaysia include accounting and taxation services, Virtual Office services, human resource support, marketing services, assistance with obtaining corporate finance, IT Support services and Asia real estate purchase.