Setup Business in Malaysia

What form of company is most commonly incorporated in Malaysia?

A private limited company (PLC) is the most popular business entity in Malaysia. It has a separate legal status from that of its shareholders. Directors have limited liability for the debts and losses of the company. It usually has the words “Sdn Bhd” as part of its name.

Who is SDN BHD most suitable for?

It is most suitable for local entrepreneurs, online business owners and company with simple organizational structure.

What are the required documents to incorporate a PLC company in Malaysia?

The following information should be submitted to us manually or by email to proceed with the application for company formation:

  • Proposed company names and its meaning
  • Main business activities that the proposed company will operate
  • Photocopy of all directors & shareholders NRIC or Passport
  • Latest proof of residential addresses of all directors such as utility bills (if different from IC)
  • All directors’ and shareholders’ business occupation, contact numbers and email ids
  • Paid-up capital information
  • Percentage of shares hold by each shareholders

Who are eligible to apply as company directors?

It is compulsory to have at least two resident directors to apply for a PLC in Malaysia to comply with the statutory requirement. One should be a local Malaysian who permanently resides in Malaysia and the other can be any foreigner with a work permit / permanent resident (PR) / MM2H holder or dependent pass (DP) holder.

What do we offer?

  • We provide services to both local foreign investors who want to set up companies in Malaysia
  • We take care of all the Malaysia Company SDN BHD Registration details
  • Our service is quick and thorough that complies with all existing statutes, laws and regulations
  • We give you access to our latest technologies & customized secretarial & CRM software
  • We do not charge any lock in period or exit fees for Malaysia Company Setup
  • We provide security to prevent any loss or damage of  secretarial file
  • If you like to know more about our incorporation package, please refer to Incorporation Services.

Setup Representative Office in Malaysia

What is the purpose of setting up a Representative office in Malaysia?

A Representative office is set to fulfill the following purposes:

  • Enhance bilateral trade relations
  • Promote the export of Malaysian goods and services
  • Carry out research and development (R & D)

What are the activities allowed to be operated by a Representative office in Malaysia?

The approved RO is established to perform the following permissible activities for its head office or principal:

  • Gathering and analysis of important information or undertaking feasibility studies on investment and business opportunities in Malaysia and the region
  • Planning or coordination of business activities
  • Identifying sources of raw materials, components or other industrial products
  • Undertake research & product development
  • Act as a coordination centre for the corporation’s affiliates, subsidiaries and agents in the region
  • Other activities which will not result directly in actual commercial transactions

What are the activities not allowed to be operated by a Representative office in Malaysia?

An approved RO is not allowed to carry out the following activities:

  • Be engaged in any trading (including import and export), business or any form of commercial activity
  • Lease warehousing facilities
  • Any shipment / transshipment or storage of goods shall be handled by a local agent or distributor
  • Sign business contracts on behalf of the foreign corporation or provide services for a fee
  • Participate in the daily management of any of its subsidiaries, affiliates or branches in Malaysia

What are the eligibility criteria to set up a Representative office in Malaysia?

The proposed operational expenditure of the RO must be at least RM 300,000 per annum.

The RO should be financed by funds emanating from sources outside Malaysia

Who can apply for expatriate post in the Representative office?

Expatriates will only be considered for managerial and technical posts and the number of expatriates will depend on the functions and activities of the Representative office.

Who is eligible to apply as an expatriate to serve in the Representative office?

The proposed expatriate must be currently employed by the applicant company or its subsidiary or within the group. An expatriate working in a Representative office is subject to normal income tax.

What are the documents required for Representative office registration and Employment pass application filing?

  • Completed application form with information such as purpose of establishment, activities of proposed office, benefits to Malaysia from the establishment of RO, estimated cash flow and human resources arrangements for the proposed RO
  • Copy of the parent company’s certificate of incorporation
  • Parent company’s profile
  • Copy of the parent company’s latest annual report and audited accounts for the latest 2 year. You may choose to self-declare other supporting details such as company brochures, contracts, website, etc. in support of your application.
  • Copy of passport
  • 1 passport size recent photo
  • Copies of educational certificates above high school
  • Copy of resume
  • Copies of past employment testimonials and appointment letters if available
  • Tenancy agreement for business operations address in Malaysia
  • 1-2 page document that outlines the following:
    • Detailed description of the duties to be performed by the applicant
    • Detailed description of activities and/or products of the company

What do we offer?

  • Professional advices and assistances in completing the RO application form
  • Liaising with authorities on any clarifications
  • Employments pass application for each Expatriate Post

How long will it take to register a Representative office in Malaysia?

The whole process of registering a Representative office will take 4-7 months considering all the documents are accurate and complete.

Setup Labuan Offshore Company

Who is suitable to set up a Labuan Company?

It is suitable for any investors who want to enter the Malaysian market.

What are the characteristics of a Labuan Company?

  • It provides 100{4464fdb1985ab504814e1f1cb36d7218370b0e9604ffbed418889285cda48ef5} ownership and control
  • Requires a minimum of one shareholder and one director of any residency or nationality
  • It must have a resident secretary
  • There is no minimum capital and no authorized share capital requirements
  • The shares issued shall have no par or nominal value
  • Treasury shares are allowed
  • It may issue shares of different classes and of different rights, but no bearer shares are allowed.
  • It is a requirement to have a registered office in Labuan which is the office of the resident secretary

Which area of business can a Labuan company access to benefit from tax?

A properly structured Labuan company can conduct in areas of offshore banking, insurance, trust and fund management and investment holding to be facilitated from a legitimate tax exemption.

Who is eligible to be appointed as the company secretary?

One or more can fill up the post of company secretary. If more than one is appointed then at least one must be a resident secretary. Only an approved officer of a Labuan trust co or its wholly owned subsidiary may be appointed as a resident secretary.

What are the benefits of setting up a Labuan company?

  • All companies can secure Malaysia employment visas for staff
  • It permits trading with Malaysian company or resident at a tax rate of 25{4464fdb1985ab504814e1f1cb36d7218370b0e9604ffbed418889285cda48ef5} with the requirement to report the transaction to the Labuan Authority.
  • It is a tax haven with tax rate as low as 3{4464fdb1985ab504814e1f1cb36d7218370b0e9604ffbed418889285cda48ef5} of audited net profits or fixed tax of RM 20,000
  • Director fee or dividend is non-taxable
  • Labuan Legislation is stable and remains constant for many years
  • With careful planning, Labuan offshore companies may enjoy the benefits of Malaysia’s extensive Double Tax Treaties
  • No tax or audit is required for investment holding company
  • Most businesses do not require trade licenses
  • 2 years of business visa is available for you and your family
  • Flexibility to operate with Ringgit Malaysia or foreign currencies bank accounts

What do we offer?

  • A one stop solution to incorporate your Labuan Offshore Company
  • Handle the business licensesapplication, company names selection as well as business setup with full competency
  • Also includes accounting, taxation, secretarial, and marketing services post incorporation

Register a Branch Office in Malaysia

Who is most suited to set up a branch office in Malaysia?

It is an appropriate form of business operation for foreign company which is only operating in Malaysia on a short term basis and not carrying wholesale and trade retail businesses.

What is the requirement to set up a branch office in Malaysia?

  • The law requires at least one Malaysian resident to be appointed as an authorized agent in Malaysia. He/she is required to accept responsibility for the service of the process and any other documents required to be served to the company.

What is the responsibility of the appointed agent?

The appointed agent shall be answerable for the acts, matters and things, as are required to be done by the foreign company under the Companies Act and be personally liable for all penalties imposed on the foreign company for any contravention of the Companies Act.

What are the charges involved to set up the branch office?

The estimated cost of setting a branch office in Malaysia is RM 8,000. The registration fee depends on the share capital owned by the company. Additionally, an annual payment also needs to be provided to maintain the branch office service.

What do we offer?

  • Full Maintenance of the Branch Office Registers and Statutory Record
  • Provision of registered office address
  • General advisory on branch office/compliance/accounting/tax matters
  • Monitoring and ensuring compliance with relevant legal requirements, particularly under the Companies Act and Income Tax Act. Regular compliance alert via email and call

What is the benefit of using our premise as the registered address of your branch office?

The use of our office premise as your Branch Office’s Registered Address is for fulfillment of statutory requirements under the Companies Act. We guarantee the safeguard of all the Registers and Statutory Record which will be accessible to the public.

What will be included in the provision of registered office?

  • Statement of letter upon request
  • Incoming General Fax Services
  • Scanning letter services upon request
  • Daily letter or parcel notifications via email
  • Self collection of mail and parcels
  • Receipt of normal mails, air mails and parcels
  • Mail forwarding / Courier arrangement to a local / overseas address on daily / weekly / monthly basis