Incorporation in Malaysia

Malaysian LLC can be registered within 1 week by depositing a minimal amount of US$2 as the initial share capital. Furthermore, only 2 directors and 2 shareholders will be required.

Alternatively, one can choose to register a Labuan company which allows them to (i) rent space in Malaysia (ii) secure Malaysian visas and (iii) open bank accounts in Malaysia. A Labuan company can be set up within 1 week;

Smaller manufacturing companies with paid-up capital below RM 500,000 and manufacturing high tech products and other promoted goods are eligible for the Pioneer status and Investment Tax Allowance incentives;

Those who are granted Pioneer Status enjoy a five-year partial exemption from the payment from the payment of income tax; applications received from companies located in the “Eastern Corridor” of Peninsular Malaysia will enjoy a 100% tax exemption on their statutory income during their five-year exemption period;

Some are the factors which make Malaysia the leading destination in the world for business owners are mentioned below.

• Start-up costs in Malaysia are among the lowest in the world.
• Reduced rental rates.
• Low Wages i.e. average wages is $2.31 USD per hour.
• If any dividend is paid outside of Malaysia than there is No Withholding Taxes chargeable.
• No restrictions on Malaysian corporations upon repatriation of capital, profits, dividends, and royalties.
• Strong incentives and subsidies are given to encourage the business formation and capital investment by the government.

1. Application for name of the company – Select a proper name for the company and then check its availability. To check the availability of company name one needs to refer to Government Gazette, which gives the guidelines regarding the name and application of a company name.

Steps in filing a name availability application;

• Choose a name and file the name application form. SSM does the name approval depending on the availability of the name. The name is reserved for three months from the date of approval.
• All the incorporation documents need to filed with SSM within 3 months from the date of approval of the company’s name. In case of failure, a fresh application has to be submitted.

2. MoA and AoA have to be submitted to SSM. The Inland Revenue Board affixes the official stamp. The MoA & AoA should have details of directors and secretaries. The subscribers of the company’s shares are also required to sign the MoA & AoA in the presence of a witness.
3. The director or promoter have to submit a declaration stating the he/she is not bankrupt and has no criminal record.
4. The Company secretary should sign the Declaration of Compliance stating that all the requirements of the Companies Act have been adhered to.
5. Identity proof of directors.
6. Company name approval letter from SSM.

After compliance with the procedure and submission of the duly completed Documents with the prescribed fee the SSM issues a Certificate of Corporation. The company shall get the permit from the concerned authority before starting the business activity mentioned in MoA.

Note: All the documents need to be either in Malay or English Language.