Open a Company in Agriculture in Malaysia

Updated on Thursday 03rd August 2017

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Agriculture is one of the most important business sectors in Malaysia's economy. The country has fertile grounds that allow for the production of numerous exotic fruits. Rice is another important product and the country is one of the leading producers of both natural rubber and of palm oil

The experts at our law firm in Malaysia can help you open a company in agriculture.

Investments in agriculture in Malaysia

Malaysian companies that operate in the agricultural sector need to obtain accreditation and certification as per the rules and regulations in force. These include special permits and licenses for good hygiene practices, those for good manufacturing practices or those for livestock farms.

This business sector is encouraged through a series of incentives and foreign investors in Malaysia are also able to apply for these. Agriculture is included on the list of business activities favored by the Malaysian Government, although these to not apply to all sub-sectors. One of our attorneys in Malaysia can provide you with complete details on the types of agriculture for which the incentives are being provided.

The Ministry of Agriculture and Agro-Based Industry in Malaysia offers both fiscal incentives and nonfiscal incentives for those who open a company in agriculture in Malaysia. The fiscal ones include a deduction from the income tax and an exemption from the sales tax. The companies that are eligible are cooperatives that are agriculture based, sole proprietors and shareholdings that involve agriculture. Examples of the incentives for agriculture include the investment tax allowance, the incentive for new food production projects, farming allowance, reinvestment allowance, incentives for R&D projects or for small and medium sized agricultural companies. Special incentives for export and training also apply.

Malaysian company formation

Investors who want to open an agricultural company in Malaysia can choose between several types of companies. The private limited company and the public limited company are the two preferred business forms.

Companies in Malaysia are required to have a unique name and to be registered with the Companies Commission. The corporate income tax in Malaysia is 24% and companies that have employees are also subject to social security contributions.

You can contact our law office in Malaysia for detailed information on the requirements to open a company in agriculture.