Malaysia has a relatively open and state oriented economy, it is suitable to form a company in Malaysia or establish a Malaysia Company. With a GDP of $24,520.784 per capita, Malaysia has been ranked as the third largest economy in South East Asia and the 29th largest economy in the world by the purchasing power parity principle in 2014. Since its independence in 1957, to modern times; Malaysia has shown an impressive economic growth rate of up to 6.5% per annum and remains unaffected by the global economic recession.

High levels of both domestic and foreign direct investment played a vital role in the growth and industrialization of the economy. Today, Malaysia is one of the world’s largest exporters of electrical goods, semiconductor devices and components, information and communication technology (ICT) products, solar panels and other high-tech gadgetry.

Business development initiatives, tax incentives and a favorable market necessitate the need for establishing new businesses in Malaysia. As the capital market crossed the RM2 trillion thresholds in 2010, the following points are to be considered when setting up a business in Malaysia.

Want to Start business in Singapore
Want to Start business in Singapore

Based on the type of venture, the paid up capital and the work permit application, there are three major types of companies which foreigners can set up in Malaysia:

100% Foreign Owned Company

Such companies are entirely owned and controlled by foreign directors. The business concept should be unique, beneficial to the Malaysia’s economy and employment and has to be approved under the 100% foreign owned structure principle. The minimum paid up capital requirement is RM500000 for advisory and consultancy businesses and RM1 million for import, export, restaurant and trading businesses.

Joint Venture with Malaysian Partner

For such companies, a minimum of 50% control over the venture is maintained by the foreign directors. The other half is owned by Malaysian investors and trading partners. A minimum authorized capital of RM500000 and paid up capital of RM350000 is required.

Private Company Limited by Shares

Foreigners are only allowed to establish a private company limited by shares. No sole proprietorship or any guarantee limited is allowed. Under the Company Act 1965, such company shall have a minimum of 2 directors and 2 shareholders and the capital structure will be upon the directors’ decision of setting up a fully owned or a jointly owned entity. The suffix “Sendirian Berhad” (Sdn Bhd), which translates to “limited liability” in Malay, shall be added to the name of such companies. There are advantages in incorporation of a Sdn Bhd company.

Find out more on the Setting up a Sdn Bhd company to establish a limited company in Malaysia with Paul Hype Page & Co. Establish a Malaysia Company or form a company in Malaysia has never been easier. Our qualified and professional consultants will assist you incorporate your business in the shortest amount of time.