Business entities in Malaysia
Limited liability company (LLC)
An LLC is commonly incorporated by entrepreneurs when starting a business in Malaysia. The liability of the shareholders is limited to the extent of their capital investment, while stock transfer requires the decision of the majority of members.
Entrepreneurs can establish this Malaysia business setup with at least 30% native Malay ownership. If this requirement is met, the organisation can enjoy special grants, discounts, and incentives such as cheaper business licenses, special bank agreements, native reservation of land, and discounts when purchasing or renting land.
Another option for business setup in Malaysia is establishing the branch office. Company law dictates that all branch offices must conduct business within the scope set by the parent company. However, this office can engage in business activities, which involve trade, invoicing, and signing contracts.
This Malaysia business setup is only allowed to engage in business activities including market research and promoting the business of the parent company. Consequently, a representative office cannot sign contracts or conduct business in Malaysia.
Table of comparison between Malaysia business entities
Frequently asked questions
How long does it take to set up a small business in Malaysia?It takes on average 14 weeks to complete Malaysia business setup.
Do I need a resident director to establish a company in Malaysia?Yes, 2 resident directors are mandatory for Malaysia business set up. Healy Consultants can provide nominee resident director services for our Clients.
Why should I setup a company in Malaysia?There are several advantages of setting up a business in Malaysia, because the country i) is an industrial hub ii) is a cheaper alternative to Singapore iii) uses English as the second language and iv) has great provisions for the Islamic community.