Malaysia

Key benefits

Malaysia is located in Southeast Asia, consists of 13 States and 3 Federal Territories and boarders Thailand, Indonesia and Brunei. With a population exceeding 27 million Malaysia is one of the fastest and most stable developing regions in Asia. Malaysia has evolved from a raw material producing economy to a dynamic, emerging multi-sector economy which includes hi-tech and medical and pharmaceutical industries in addition to possessing a thriving oil and gas industry.

Growth has been slowing in Malaysia recently with GDP decreasing from 7.2% in 2010 to 5.1% in 2011. This is mainly due to the impact from the on-going Eurozone crisis however Malaysia remains a buoyant economy with the domestic sector driving growth leading Malaysia to become increasingly less influenced by global economic impacts.

The banking sector in Malaysia has developed in recent years to become a robust pillar of the financial system. Spurred on by competitive pressures in the region and financial liberalization the banking system has advanced which has contributed to ensuring numerous international banks are located in Malaysia.

Key benefits of Malaysia:

  • Malaysia has been placed on the ‘White List’ of jurisdiction as the OECD has recognized Malaysia as having implemented the required tax related standards.
  • Proactive policies by the government ensure Malaysia provides numerous opportunities for growth
  • The Corporate Tax Rate in Malaysia is 27% and in addition to this the government offers a wide range of benefits, specifically in relation to manufacturing.
  • Malaysia is ranked as the 21st most competitive economy in the 2011 World Economic Forum’s Global Competitiveness Yearbook.
  • Malaysia has a liberal exchange control system which enables businesses to deal freely in foreign exchange with very little restrictions
  • Malaysia has a developed and stable banking system with many international banks located in the country.
  • Malaysia offers a young, educated and competitively priced workforce.
  • Malaysia has a well-developed infrastructure in relation to other newly industrialized countries in Asia.

Please contact us if you require our Malaysia Fact Sheet and Fee Schedule.

Tax and accounting regulations

Summary of Requirements for a Limited Liability Company, Sdn.Bhd

General Information
Type of CompanyLimited Liability Company, Sdn. Bhd.
Timescale to incorporateApprox. 2 weeks
Corporate Taxation28% Corporate Tax on all income. Some withholding taxes applicable; 15% on Interest and 10% on Royalties. It is advisable to Appoint a Licensed Tax agent, Eltoma can assist with this.
Double Tax Treaty Access:Yes, a Malaysian company can access double taxation treaties with 68 countries
Directors
Minimum No. Required2 Local Directors Required however can also appoint foreign directors.
Local Director RequiredYes, 2 Local Resident Directors are required. Eltoma Corporate Services can provide this service
Publicly accessible informationYes
Location of MeetingsAnywhere
Additional InformationA Local Director Deposit is required to be paid for each director appointed. This is 1,500.00 USD for each director and is refundable upon cessation of service.
Shareholders
Minimum No. Required2
Publicly accessible informationYes
Location of MeetingsAnywhere
Company Secretary
RequiredYes
Local Secretary RequiredYes, must be a resident of Malaysia
Registered Office RequiredYes
Share Capital
Standard CurrencyRM (Malaysian Ringgit)
Standard AuthorisedMinimum Authorised Capital RM 100,000 (approx.30,000 USD)
Minimum Paid Up CapitalMinimum Paid Up Capital RM 2.00 (approx. 1.00 USD)
Accounting & Compliance
Requirements to prepare AccountsYes.
Requirement for AuditYes. All Malaysian Companies must appoint an auditor before the first AGM.
Local Auditor RequiredYes.
Requirement to File AccountsYes
Requirement to file Annual ReturnYes
Additional Information
VATGST (Goods & Services Tax) currently stands at between 5% – 10%. Obligatory if the annual company turnover exceeds PM 100,000 (approx. 30,000 USD).
Bank Account OpeningMany large international banks such as HSBC, Citibank and Standard Chartered are located in Malaysia.

 

Procedure of company registration

Eltoma Corporate Services will manage the formation process ensuring this is carried out in the quickest timescale possible. We require the following in order to proceed:

  • Completed application form
  • A certified copy of each director and shareholder passport
  • Two utility bills that are under 3 months old

Upon receipt of the above the following is completed:

  • Obtain company name approval (normally received within 48 hours)
  • Submit the application to the Companies Commission
  • Within approximately 10 working days the company will be registered
  • Registration with the Taxation Department will take place after formation.

Eltoma Corporate Services can provide all post formation services, please contact us for a fee schedule and quotation.