Company registration in Malaysia
A foreigner with 100% foreign ownership can buy a company in Malaysia. To open a company, you must first specify what industries businesses are allowed to develop in. The sectors in which the Malaysian government tries to stimulate investment include education, banking, tourism, mining, and agriculture.
Opening an offshore business in Malaysia has become relevant in the federal territory of Labuan, which is part of the Malaysian Federation. Labuan is known as an offshore banking center, which is advantageously located between Malaysia and the Philippines. To learn more about the features of opening an offshore company, please contact our experts at IT-OFFSHORE.
The benefits of opening an offshore company
There are some advantages to registering a company in Malaysia. Jurisdiction is located in Asia, which allows you to enter the Asian market. The cost of developing a business is relatively low. There are lower rental rates than in other Asian jurisdictions.
There is no double taxation, as the country has concluded a double tax avoidance agreement with some states. There are no levies on dividends that are paid outside the jurisdiction as well as. No restrictions on repatriation of capital and profits, royalties and dividends. The country supports business development and capital investment.
Main forms of business
The duration of the registration of the firm and the complexity of the procedure depends on which legal form was selected for opening. There are several structures that are allowed in the country.
- An individual entrepreneur - business involves opening under a personal name, liability for obligations is full, only residents of the country can work;
- Firm with limited and unlimited liability. The first option is the most popular. It is required to have a secretary, who is a resident and at least two directors;
- Partnership - business can be owned by up to 20 people;
- LLC - often opens for small business, the liabilities are associated with the assets of companies;
- Joint-stock company - the number of participants must be at least 7, there are capital requirements.
To open a company operating in trade or tourism, a special permit (license) will be required. If a shareholder becomes a director, he or she must be at least 18 years old.
Stages of company opening
The establishment of the company in Malaysia involves several stages. The name must be created in advance. Once the name is approved, a number of documents must be submitted to the registration institution.
These include data on the name of the company and the creators of the business. For foreign firms you need copies of the registration certificate. You will need the Articles of Association, Memorandum, and other founding documents. You will also need data on the directors and an application with the certification of an agent.
Documents must be completed in Malaysian or English. They must be submitted within ¼ year after the name has been approved. The papers are checked and if they are successful, a certificate of registration can be obtained.
Registration Features and Basic Requirements
If the company is to be registered by a foreigner, some difficulties may arise. It will take require at least two shareholders and directors to form a private company with limited liability.
Each corporation must have a local office address as well as a local registered agent. Any corporation in Malaysia must have at least one director over the age of 18 who is domiciled in the State. He must not be bankrupt and must not be convicted. The director may be a permanent resident of the country or a foreigner with a residence card. There must be a secretary in the corporation.
Corporations must pay appropriate taxes on goods and services and pay annual fees. Privacy may be obtained by appointing nominee shareholders and directors. Each firm must keep records, which are verified through an audit.