Open a Company in Malaysia
Updated on Thursday 15th February 2024
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If you want to open a company in Malaysia, you should know that you have several options at hand. You can opt for a limited liability company, one of the most popular business structures in this country, or for an offshore company, for example. Whatever the choice, the services offered by our Malaysian lawyers are at your fingertips. We are here to help you set up a company in Malaysia by handling the procedures involved.
What kind of company can you set up in Malaysia?
As mentioned at the beginning of this article, you have several options for opening a business in Malaysia. Here are the structures you can choose:
- limited liability company.
- private or public limited company,
- offshore company,
- partnership
- sole proprietorship, etc.
With only USD 2 you can register the simplest business structure in Malaysia, a limited liability company or LTD company. We recommend that you consider specialized help from our lawyers in Malaysia. Also, if you want better guidance from a legal point of view for the business you want to open, you can opt for the services offered by our corporate lawyer in Malaysia.
Main steps for setting up a company in Malaysia
In the case of an LLC, the most appreciated business structure in Malaysia for the flexibility offered, at least 2 shareholders are needed for establishment. Here is other information to register an LLC in Malaysia:
- It is necessary to verify and reserve the name of the desired company.
- Articles of Association are the main documents of the company. We can help you set up a company in Malaysia and create the documents.
- Depending on the activities to be carried out, special licenses and permits will be applied for.
- The company is registered for tax payment in Malaysia. Our attorneys in Malaysia can help you in this endeavor.
- It is necessary to open a bank account, preferably in Malaysia. Contact us if you want more details about how to open a company in Malaysia.
- You still need a resident director and legal representative to open a company in Malaysia.
We specify that the opening of an LLC in Malaysia should not take more than 4 months. You can contact our law firm in Malaysia to learn more about how to open a company in Malaysia.
Who provides the evidence for opening a company in Malaysia?
The Companies Commission of Malaysia is the institution in charge of issuing varied approvals for investors who want to set up a company in Malaysia. We remind you that our specialists collaborate with the relevant authorities for the registration of companies in Malaysia. We help foreign investors to open a company in Malaysia in the shortest possible time.
Post-registration requirements in Malaysia
Once the company is registered in Malaysia, a Certificate of Incorporation will be issued. However, other important steps follow. For example, you must register your employees with the social security and retirement fund. The company must also be registered with the Inland Revenue Board to be able to file tax returns.
Below are some interesting facts about the Malaysian economy, so that you are prepared when you want to open a company in this country:
- An economic growth of approximately 8.7% was recorded in Malaysia in 2022.
- The economic growth of Q4 of 2022 was largely supported by investments, private spending, and unemployment decline.
- Around RM 19.3 billion was the net FDI registered in Q4 of 2022.
The costs for opening a company in Malaysia
The costs for opening a company in Malaysia include those needed to conclude mandatory documents, the fees payable upon document submission and any associated registration costs. A registration fee and a stamp fee apply when registering the company with the Companies Registry. If investors request the help of a company secretary to prepare the incorporation documents. The costs for these services, as well as for post-incorporation packages, can vary according to the company with which the investors work with and the requested services.
A significant part of the overall business start-up costs in Malaysia is represented by the authorized share capital with which the company will start the commercial activities. This initial amount can vary according to the type of company chosen by the investor. A minimum possible value for the nominal share capital can be around 400,000 MYR (or approximately 87,000 euros).
Please keep in mind that these values represent estimated start-up costs. To these initial amounts, the investors can add the costs associated with renting or buying property in Malaysia and the costs needed for office supplies and equipment.