Why Setup Company in Malaysia

Malaysia is a country that offers a wide range of benefits and opportunities for businesses looking to establish their presence in the region.

Reasons why setup company in Malaysia

1. Massive consumer demand: With a population of over 32 million people from diverse backgrounds, Malaysian businesses have access to a massive consumer base. Malaysia’s strategic location within Asia provides easy access to local and foreign Asian markets, including Malay, India, China, Myanmar, Singapore, and Vietnam. This opens up immense possibilities for business expansion and growth.
2. Low startup costs: Compared to its neighboring country Singapore, Malaysia offers lower startup costs for resident businesses. This cost advantage allows companies to allocate their resources more effectively, enabling them to invest in other areas of their business.

   

3. Affordable office rental: Malaysia provides affordable office rental rates, with monthly rates per m2 at just $17. Additionally, the wage rate in Malaysia is lower compared to Singapore, with potential cost savings for businesses. These favorable rental and wage rates contribute to the overall cost-effectiveness of doing business in Malaysia.
4. Double taxation treaties: Malaysia has established 68 double taxation treaties, which significantly minimize withholding tax on fund transfers abroad for resident firms. This favorable tax regime encourages international businesses to choose Malaysia as their preferred location for regional operations.
5. No withholding tax: One of the standout advantages of setting up a company in Malaysia is the absence of withholding tax on dividends made abroad by Malaysian businesses. This tax exemption further enhances the attractiveness of Malaysia as a business destination for foreign investors.

   

6. No restrictions on repatriation: Malaysia imposes no restrictions on the repatriation of capital, profits, dividends, and royalties. This allows businesses to freely transfer funds and earnings back to their home countries, providing flexibility in managing their financial operations.
7. Free trade agreements: Malaysia has signed free trade agreements with six other ASEAN countries. This grants resident businesses access to preferential trade terms, removing barriers and enabling them to tap into new markets and expand their customer base.
8. Duty-free trade: Malaysian businesses enjoy the benefits of duty-free trade through various free ports located in Pasir Gudang, Port Klang, Kulim Hi-Tech Park, Port of Tanjung Pelepas, and Bayan Lepas. This facilitates seamless import and export activities, promoting international trade and enhancing business competitiveness.

   

9. Visa sponsorship: A Malaysia business can sponsor a visa for its director if the share capital exceeds RM 500,000. This visa sponsorship program facilitates the smooth entry and stay of foreign directors, enabling them to actively participate in the company’s operations and growth.
10. Ease of doing business: Malaysia has consistently been recognized as a favorable destination for businesses. In the World Bank’s 2014 report, Malaysia was ranked as the 6th easiest place in the world to do business. The country’s efficient bureaucracy, streamlined processes, and supportive business environment contribute to its ease of doing business.
11. Competitive economy: Malaysia is positively ranked as the 25th most competitive economy in the world. This ranking reflects the country’s strong economic fundamentals, stable political environment, and supportive infrastructure, which create a conducive environment for business growth and prosperity.

    

Conclusion

Besides its advantages, Malaysia’s strategic location in the Asia Pacific and ASEAN regions boosts its appeal as a business hub. It offers a business-friendly environment, attractive incentives for foreign investors, and various business setup options. With well-developed infrastructure, multicultural society, and commitment to growth and stability, Malaysia provides endless growth opportunities for businesses expanding in the region.

Our services include:

• Advisory services for new company registration and incorporation in Malaysia
• Incorporation and registration services for public and private limited companies and enterprises
• Strike Off Company Services
• Monthly corporate advisory services such as prepare resolutions, record minutes of meeting & maintain statutory books, filing of annual returns, track filing deadlines and attend to your specific business needs.
• Registered office provision