Requirements To Start a Business in Malaysia
Malaysia is a country on the move, from a country dependent on agriculture and primary commodities, Malaysia has today become an export-driven economy spurred on by high technology, knowledge-based and capital-intensive industries.

Incorporating a Private Limited Company (Sdn. Bhd.)
As most foreign investors observe the private limited company as the most attractive business set-up, especially given the above benefits, the next step is laying the groundwork to effect a smooth incorporation process. The following outlines the requirements and documents required:

1. Nature of the business that it will operate.
2. Name of the proposed company (check out our How to Choose Company Name article here)
3. Registered office address in Malaysia
4. Specific ownership of the company i.e. 100% foreign-owned or jointly owned with a Malaysian
5. At least one (1) director and one (1) shareholder
6. Minimum of one (1) director who is at least 18 years old and residing in Malaysia; Not a Bankruptcy and; has not been convicted and imprisoned for the past 5 years.
7. Paid-up capital (minimum RM1.00)
8. Details on each Individual Director(s) and Shareholder(s): name, identification, nationality, correspondence address
9. Details on each Corporate Shareholder (if any): company name, identification, country of establishment, correspondence address

 
Business Structure and Nature of Business
There are different types of business structures in Malaysia, and we will focus on Sdn Bhd (Private Limited Company) business structure in Malaysia. (also read our article on Types of Corporate Identities here)
Deciding on Sdn Bhd (Sendirian Berhad) as your chosen business structure allows you to be entitled to the following advantages:

• Fast and Easy Incorporation Process: 

The registration process is simple, not complicated, and with papers in order it can even be completed in a week.
 

• No Restriction on Foreign Shareholding:

Access to a wide choice of business ventures by fulfilling paid-up capital procedures
Businesses are capable of 100% foreign-owned provided there is a minimum RM500,000 paid-up capital and the foreigner possesses a local residential address. The 50% ownership requirement is only applicable to specific industries (oil & gas, education, agriculture, and banking)
 

• Corporate Tax Advantages:

Taxation applies only to profits over its Malaysian-sourced income. With the present taxation system, the taxable rate is 17% on the first RM600,000 and an additional 24% on the balance. These rates are still lower than taxes levied on an individual, which can be as high as 30% and beyond.
 
The company could also access a few primary tax incentives i.e. pioneer status, tax allowance on investment, and SME Digitalisation Grant Scheme & Automation Grant.
 

• Limited Liability:

The Malaysian law regards the company as a separate legal entity distinct from its shareholders. This safeguards the shareholders’ financial security. Unless in exceptional situation of malpractice and deceit in the company, the shareholders will not be liable for the liabilities accrued by the company beyond the amount of share capital
 

• Easy to Enhance Capital:

It is relatively easy for the company to access more capital through the issuance of shares or bonds to new investors. Alternatively, the company is eligible to acquire loans from financial institutions at a lower rate as the latter usually regard such companies to be less risky in comparison to other business entities.
 

• Facilities with Banks

It is also easy for a Sdn. Bhd. to open a local bank account under the company’s name. In addition, the company can apply for a loan under its name
 
I AM READY TO INCORPORATE MY BUSINESS IN MALAYSIA. WHAT ARE THE NEXT STEPS?
With StanleyCo’s established practices and expertise, foreign investors can be assured of receiving professional consultancy and services towards a successful incorporation of their business in Malaysia. The scope of our services also extends beyond incorporation to facilitate the smooth operations of your business so that you focus on letting your business flourish, while leaving the procedural matters into our hands. Thus, post-incorporation, we continue to render you our professional services ranging from corporate secretarial, business advisory, accounting services, and tax compliance services.