Opened a Malaysian company
In the face of changes in the global economic landscape, more and more Hong Kong entrepreneurs are turning their attention to the vibrant Southeast Asian market. Malaysia, as one of the core economies of ASEAN, has become an ideal destination for Hong Kong's capital and expertise export due to its stable political environment, strategic geographic location and foreign-friendly policies, M&N International Business Consultants, with more than 10 years of experience in cross-border services in Asia, will analyze the complete picture of setting up a Malaysian company for you, from the comparison of advantages to the details of compliance, to assist you in making a precise layout.
Benefits of opening a Malaysian company
Strategic springboard to enter the 650 million ASEAN market
- Malaysia is a founding member of ASEAN and enjoys the benefits of the ASEAN Free Trade Agreement, with tariff preferences that allow your products and services to be easily imported into neighboring countries such as Indonesia, Thailand and Vietnam.
- Mature infrastructures, such as Port Klang which is a major port in the world and has a logistics network that radiates throughout the region.
Competitive cost of doing business and tax structure
- The Malaysian corporate tax rate is attractive, with small and medium-sized enterprises enjoying tax incentives, and the effective tax burden is likely to be much lower than the standard 24%.
- Operating costs (e.g. office rentals, manpower salaries) are lower than those in Hong Kong and Singapore.
- Provide additional tax incentives and subsidies for specific industries (e.g. manufacturing, technology, tourism) and regions (e.g. free trade zones, special economic zones).
Government actively promotes foreign investment
- The Malaysian Investment Development Authority (MIDA) provides a one-stop service to streamline the foreign investment approval process.
- The national policy encourages the entry of foreign capital in high-tech, knowledge-based, environmental protection and service industries.
Multicultural and Linguistic Advantages
- Hong Kong entrepreneurs will find it easier to adapt to a Chinese society with a solid foundation, where Cantonese and Putonghua are widely used in business, and where the cultural barrier is small.
- We have a pool of multilingual (English, Malay, Chinese) professionals.
Robust legal and financial systems
- The legal system is derived from English common law and is easily understood by the Hong Kong business community.
- A robust banking system with a large number of international and local banks facilitates cross-border capital deployment and financing.
Quality living environment and international education
- Providing a high quality living environment and international schools for expatriate employees and their families is conducive to attracting and retaining key talent.
Brand image and international reputation enhancement
- Setting up a company in Malaysia helps to build a regional brand image and boosts the confidence of customers and partners.
Main types of Malaysian companies to set up
Sdn Bhd (Sendirian Berhad)
- The most common form of foreign investment, with independent legal personality and shareholders' liability limited to their shareholding.
- Minimum of 1 shareholder and maximum of 50 shareholders; must have at least 1 director who is ordinarily resident in Malaysia.
- Suitable for most trading, manufacturing, service and holding businesses.
Berhad (Bhd)
- Funds may be raised from the public and there is no limit to the number of shareholders.
- Ideal for companies planning a large-scale financing or future IPO.
Branch Office
- The extension of the parent company in Hong Kong is not an independent legal entity and the legal liability is borne by the parent company.
- Suitable for specific projects or test markets in Malaysia.
Representative Office
- No profit-making activities are permitted, only market research, liaison and promotion.
- Minimum cost, suitable for initial market research stage.
Unlimited Partnerships/Limited Liability Partnerships (LLPs)
- Suitable for professional service organizations (e.g. law firms, accounting firms) in the form of combinations.
Why do so many entrepreneurs choose M&N Business Services?
- Hong Kong licensed organizations:M&N Business Services Limited is a licensed secretarial company recognized by the Hong Kong Government for its reliable services.
- One-stop comprehensive program:從Company Formation, Secretarial Services, Accounting & Tax Preparation to Virtual OfficeWe have everything you need, so you don't have to travel around.
- Experienced team:Over the years, we have assisted numerous SMEs and start-ups to register successfully and are able to deal with a wide range of complex situations.
- Charges are transparent and straightforward:All service plans are clearly priced, with no hidden charges, so you can rest assured that you're in good hands.
Basic Requirements and Conditions for Setting up a Malaysian Company
Company Name:
- It must end with “Sdn. Bhd.” and the name must be unique and approved by SSM.
Director Requirements:
- There must be at least 1 director (Malaysian citizen or permanent resident) who is ordinarily resident in Malaysia and M&N can provide a compliant nominee director service.
- Directors must be at least 18 years of age and have no criminal bankruptcy record.
Shareholder Requirements:
- A private limited company requires a minimum of 1 and a maximum of 50 shareholders. Shareholders can be individuals or corporations and there is no restriction on nationality.
- 100% foreign ownership is allowed (except for specific restricted industries).
Company Secretary:
- A licensed company secretary must be appointed within 30 days of incorporation, and M&N provides professional company secretarial services.
Registered capital:
- The minimum paid-up capital is normally RM1, but it is advisable to set a reasonable amount of capital based on the nature of the business and the visa application requirements.
Registered Address:
- Must provide a valid registered address in Malaysia (not a P.O. Box) M&N can provide business address rental services.
Checklist of Documents Required for Setting up a Malaysian Company
Company Information:
- Proposed Company Name (provide 3 options).
- Description of Nature of Business (Malaysia Standard Industrial Classification).
- Details of registered capital.
Identification of Directors and Shareholders:
- Scanned color copies of Hong Kong Identity Card and passport.
- Proof of recent address (e.g. utility bill, bank statement).
Details of the distribution of shares:
- To specify the proportion of the capital contribution of each shareholder.
Proof of registered address:
- Such as a lease or address confirmation letter.
Articles of Incorporation (M&A):
- M&N will draft a customized charter based on your needs.
If a shareholder is a company:
- Certified documents such as Certificate of Incorporation, Articles of Incorporation and Register of Directors and Shareholders of the parent company are required.
Audit and Compliance Requirements for Malaysian Companies
Successful registration is only the first step, but it is important to keep the company in good shape, and M&N provides support for subsequent compliance:
Annual Audit Requirements:
- Under the Companies Act 2016, all Sdn Bhd companies are required to have their annual financial statements audited unless they qualify for an exemption as a “dormant company” or a “qualifying internal company” (e.g. small business).
- The audit report must be issued by a licensed auditor in Malaysia and M&N can recommend reputable audit firms to work with.
Annual Reporting Obligation:
- Annual Return: Must be filed with SSM within 30 days of the company's anniversary date.
- Presentation of Financial Statements: Audited financial statements are required to be submitted together with the annual return.
- Tax Returns: An annual corporate income tax return must be filed with the Malaysian Landlord and Directorate of Revenue (LHDN).
M&N Compliance Management Services:
We offer a reminder service and can handle annual returns and assist in the preparation of audit documents to ensure that your company remains in compliance with the Companies Act of Malaysia, avoiding the risk of fines or even being struck off the register.
Why do so many entrepreneurs choose M&N Business Services?
- Hong Kong licensed organizations:M&N Business Services Limited is a licensed secretarial company recognized by the Hong Kong Government for its reliable services.
- One-stop comprehensive program:從Company Formation, Secretarial Services, Accounting & Tax Preparation to Virtual OfficeWe have everything you need, so you don't have to travel around.
- Experienced team:Over the years, we have assisted numerous SMEs and start-ups to register successfully and are able to deal with a wide range of complex situations.
- Charges are transparent and straightforward:All service plans are clearly priced, with no hidden charges, so you can rest assured that you're in good hands.
Malaysia Company Registration Services
Company Formation Services
Company Secretary
Tax Services
Virtual Office
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Frequently Asked Questions
- Standard Tax Rate: 24%
- Preferential tax rates for small and medium-sized enterprises:
- First RM600,000 taxable income: 17%
- Portion exceeding RM600,000: 24%
The complete process of setting up a private limited company (Sdn Bhd) usually takes 1-2 weeks, which includes applying for and activating a MyCoID account, searching for and reserving a company name, preparing company incorporation documents, and waiting for the SSM's audit process. In addition, you will have to make some prior preparations such as remitting the registered capital to Malaysia, hiring an SMM-approved company secretary, and finding a suitable office.
If you are worried about delays due to unfamiliarity with the local company opening procedures, you can contact M&N Business directly. M&N Business has the professional experience to help you start your business in Malaysia.
The Malaysian Companies Registry is usually located in the office of the company secretary and is used to keep all statutory records, registers, minutes and company seals. It acts as an intermediary between the company and the Malaysian Commission and other government agencies.
Yes, the company should notify the Companies Commission of Malaysia (SSM) of any change in the address of the registered office of a Malaysian company within 14 days of the change.
Not necessarily. The main requirement for opening a Malaysian company is the appointment of at least one director and one shareholder who are legally resident in Malaysia. If you do not reside in Malaysia, WeCorp can provide you with a local Malaysian director who is at least 18 years of age.
There are three main ways to immigrate to Malaysia: the Second Home Program, Entry Permit Visa, and Foreign Talent Program. Among them, the Second Home Program (MM2H) is the most suitable for those who intend to set up a company in Malaysia, and the threshold is relatively low. You only need to bring a certain amount of capital to the country, and applicants aged between 21 and 49 need about 500,000 Malaysian Ringgit in exchange for up to 10 years' residence, during which time you are not permitted to work, with the exception of setting up a company to run a business.
The address of the registered office of a Malaysian company must be a physical address and not a virtual address such as a website. In addition, the registered office must be located in Malaysia, i.e. where the company is incorporated.