Malaysia is one of Southeast Asia’s top destinations for foreign investors, offering a business-friendly environment, strategic location, and supportive government policies. If you’re a foreigner planning to register a company in Malaysia, this guide will walk you through the key steps and essential information to get started.

 

Types of Foreign Business Entities Available in Malaysia

When setting up a company in Malaysia, foreigners have several business entity options:

1. Private Limited Company (Sdn Bhd): The most popular choice among foreigners, requiring at least one director who resides in Malaysia.
2. Representative Office: Suitable for market research or promotional activities but cannot engage in commercial transactions.
3. Branch Office: An extension of a foreign company, subject to Malaysian tax laws.
4. Labuan Offshore Company: Ideal for international business activities, benefiting from low taxes and less stringent regulations.

 

Types of Prohibited Industries for Foreigners

While Malaysia welcomes foreign investments, certain industries are restricted or prohibited for foreigners. These include:

1. National security sectors: such as defence and law enforcement.
2. Natural resources-related industries: like forestry and mining.
3. Licensed industries: requiring local participation, such as telecommunications and media.

 

Benefits of Setting Up a Company in Malaysia

Why should you consider Malaysia for your business expansion? Here are some compelling reasons:

1. Strategic location: A gateway to the ASEAN market with over 600 million consumers.
2. Tax incentives: Multiple tax benefits for foreign investors, including pioneer status and investment tax allowances.
3. Skilled workforce: A multilingual and educated workforce, fluent in English, Malay, and other languages.
4. Business-friendly policies: Streamlined processes and supportive government initiatives like the Malaysia My Second Home (MM2H) program.

 

Company Registration in Malaysia for Foreigners Cost

Register a company in Malaysia for foreigners cost varies depending on the entity type and services required. Here’s an estimate:

• Company incorporation fees: Approximately RM1,000 to RM3,000.
• Business licenses: Costs depend on the nature of your business.
• Corporate secretary services: Ranges from RM1,500 to RM5,000 annually.
• Local nominee director fees: RM6,000 to RM12,000 per year.

Consult a professional service provider for a detailed breakdown tailored to your business needs.

 

Tax Rate for Foreign Companies in Malaysia

Foreign companies operating in Malaysia are subject to the following tax rates:

• Corporate tax: 24% for taxable income above RM600,000.
• Small and medium-sized enterprises (SMEs): 15% on RM0 – RM50,000, 17% on the next RM150,001 – RM600,000 taxable income and 24% thereafter (for Sdn Bhd entities).
• Withholding tax: Applied to royalties, interest, and service payments to non-residents at rates between 5% and 15%.
• Labuan companies: Enjoy a reduced tax rate of 3% on audited profits or a fixed RM20,000 payment annually.

Understanding Malaysia’s tax structure is critical to ensure compliance and optimize your financial planning.

 

How to Register a Company in Malaysia for Foreigners?

Follow these steps to register your company:

1. Choose a business structure: Select the most suitable entity type based on your goals.
2. Company name search: Ensure your desired name is unique and approved by the Companies Commission of Malaysia (SSM).
3. Prepare required documents: These include the constitution, incorporation forms, and director/shareholder details.
4. Appoint a local director: A resident director is mandatory for private limited companies.
5. Apply SSM: Complete the registration process by filing the required documents and paying the fees.
6. Obtain licenses and permits: Apply for relevant approvals depending on your business type.

The entire process is straightforward when working with an experienced company secretary.

 

Register a Company in Malaysia for Foreigners Requirements

Foreigners must meet the following requirements to register a company in Malaysia:

• Minimum paid-up capital: RM1 for most industries but higher for regulated sectors.
• Local director: At least one director who resides in Malaysia.
• Registered office address: A physical address in Malaysia for official correspondence.
• Company secretary: Appointed within 30 days of incorporation.

 

Register a Company in Malaysia for Foreigners Timeline

Here’s a typical timeline for company registration:

1. Name search approval: 1-3 working days.
2. Document preparation: 3-5 working days.
3. Company incorporation:  1-3 working days.
4. Post-registration tasks: Licensing, bank account setup, and office rental may take 2-4 weeks.

Proper planning and assistance can complete the process within 2-4 weeks.

 

Why Choose Consistant Info’s Business Registration and Secretary Services?

Consistant Info, backed by over 16 years of experience, is a reliable choice for business owners needing professional company registration and secretarial services. Here’s why:

1. Comprehensive solutions: From incorporation to licensing, we handle everything for you.
2. Expert guidance: Our team ensures compliance with Malaysian regulations.
3. Transparent pricing: No hidden fees, offering you peace of mind.
4. Customer satisfaction: Highly rated by business owners for our professionalism and efficiency.
5. Digital Company Secretary: Access via mobile apps and web portals for seamless management.

Register a company in Malaysia for foreigners is an exciting opportunity to tap into one of Asia’s fastest-growing markets. Understanding the requirements, costs, and benefits allows you to make informed decisions for a successful incorporation process.

 

Ready to register your company in Malaysia? Contact Consistant Info today for expert assistance and seamless services. Let us help you achieve your business goals with ease.