Open a Software Company in Malaysia

Updated on Friday 17th February 2023

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Malaysia is a preferred location for startup founders and entrepreneurs in the information and communications technology industry. Many IT and software companies focus both on the local market and on the surrounding regions in Asia and businesses that focus on these types of activities are encouraged through a set of incentives.

Investors who want to open a software company in Malaysia can talk to one of our lawyers in Kuala Lumpur for detailed information on the requirements for these types of companies.

The software industry in Malaysia

Software development is one of the leading sub-sectors in the information and communications technology market in Malaysia. The growth of the sector has taken place organically, with the rise of a significant number of startups but it has also been aided by the Government. Software investors in Malaysia can look for business opportunities in sub-sectors like software-as-a-service (Saas), software solutions for green technology or mobile commerce, a particularly promising business field.

Companies that provide IT, multimedia, or software services in Malaysia can be eligible for special tax incentives and assistance programs, many of which rely on different types of reimbursements. One of our lawyers in Malaysia can help you comply with the ongoing tax laws and apply for any available grants and incentives for your type of company.

Even though they can apply for special grants and tax exemptions, entrepreneurs who open a software company in Malaysia should have a suitable business plan and consider the operating costs for this type of business. The company incorporation costs, office rent, costs associated with the employees in Malaysia, and others need to be taken into consideration. 

Startups can choose to work in a co-working space and look for alternative location options, apart from Kuala Lumpur. Klang Valley is one of the alternatives.

Opening a company in Malaysia

Foreign investors in the software sector in Malaysia can open a private limited liability company with full foreign ownership. This is a suitable type of company for a software business because it is a separate legal entity from its founders who are only liable to the extent of the capital they invest.

One of our attorneys in Malaysia can give you complete details about the steps for company registration with the Companies Commission.

Do you want to collaborate with our commercial lawyers in Malaysia? You can turn to us when you discover that you are involved in corporate issues when you want to sign some business contracts, or if corporate restructuring is needed. The benefits of working with us are interesting, and among them, affordable costs, experience, professionalism, and the desire to bring the best solutions for the presented problems to the clients.

Contact our law firm in Malaysia for complete legal services.