Malaysia

Legal form:

Sdn Bhd, Bhd, Berhad

Delivery:

3 days

Price: $

3000

Payment methods:

Requirements:

Document checklist:

Local legal address (Handled by B2B Hub)

1.Passport
2.Proof of Residence

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Registrar

Organization name

The Government of Malaysia

Abbreviation

Country

Malaysia

komunikasikorporat@kehakiman.gov.my

Phone

603 8000 8000

Listing

Open website

About

Malaysia

Capital
Official languages
Population
Currency

ISO 4217

Kuala Lumpur

Malay, English, Chinese, Tamil

32.6 million

Malaysian Ringgit

MYR

FAQ

Q: What is the process for forming a company in Malaysia?

A: The process for forming a company in Malaysia involves several steps. The first step is to choose a company name and then draft the memorandum and articles of association. The memorandum and articles of association will specify the name of the company, the purpose of the company, the amount of share capital, the number of shares, and the rights and obligations of the shareholders. Once the memorandum and articles of association are drafted, they must be submitted to the Companies Commission of Malaysia (SSM) for registration.

Q: What types of companies can be formed in Malaysia?

A: There are several types of companies that can be formed in Malaysia, including sole proprietorships, partnerships, and corporations. The most common type of company formed in Malaysia is the Sendirian Berhad (Sdn Bhd), which is similar to a private limited company.

Q: What is the minimum share capital required to form a company in Malaysia?

A: The minimum share capital required to form a company in Malaysia depends on the type of company being formed. For an Sdn Bhd, the minimum share capital required is RM1.

Q: Do I need to have a physical office in Malaysia to form a company?

A: Yes, a physical office in Malaysia is required to form a company. The company must have a registered office address in Malaysia, and this address must be used for official correspondence.

Q: What are the tax implications of forming a company in Malaysia?

A: Malaysia has a corporate tax rate of 24%. Additionally, Malaysia has signed tax treaties with several countries, which can help to reduce the overall tax burden.

Q: How long does it take to form a company in Malaysia?

A: The time required to form a company in Malaysia depends on various factors, such as the type of company and the complexity of the company structure. In general, it can take anywhere from a few days to a few weeks to form a company in Malaysia.

Q: What are the ongoing compliance requirements for companies in Malaysia?

A: Companies in Malaysia are required to comply with various ongoing compliance requirements, such as filing annual financial statements and maintaining a registered office in Malaysia. Additionally, companies may be subject to other requirements based on their specific business activities.

Q: Can a foreigner form a company in Malaysia?

A: Yes, foreigners are allowed to form companies in Malaysia. However, they may be subject to additional requirements, such as obtaining a work visa or appointing a local director.

Economy

Malaysia has a strong and growing economy, with a GDP of $367.7 billion in 2019. This is a 4.6% increase from 2018, making it one of the fastest growing economies in the region. The country has a low unemployment rate of 3.3%, and a high labor force participation rate of 68.2%. The country also has a strong export sector, with exports totaling $202.2 billion in 2019. Malaysia is also a major producer of oil and gas, with exports of $25.3 billion in 2019. The country also has a strong manufacturing sector, with exports of $90.2 billion in 2019. Overall, Malaysia has a strong and growing economy, with a GDP growth rate of 4.6% in 2019. Sources: World Bank, Trading Economics, and IMF.

Taxation

Malaysia has a progressive tax system, with different tax rates and rules for corporate and personal taxation. Here is an overview of the tax system in Malaysia:

Corporate taxation:

- The corporate income tax rate in Malaysia is 24%, which applies to both resident and non-resident companies.

- Small and medium-sized enterprises (SMEs) are eligible for tax incentives and lower tax rates, depending on their size and industry.

- Capital gains are generally taxed as regular income, but there are exemptions available for certain types of gains.

Personal taxation:

- Malaysia residents are subject to personal income tax on their worldwide income, with a progressive tax rate that ranges from 0% to 30% depending on income level.

- Non-residents are only taxed on their income sourced from Malaysia.

- There is also a monthly tax deduction (MTD) system in place, where employers deduct tax from employees' salaries and remit it to the government.

- Capital gains are generally taxed as regular income, but there are exemptions available for certain types of gains.

Tax payment process and calendar:

- The tax year in Malaysia is from January 1st to December 31st of the same year.

- Taxpayers are required to file their tax returns by April 30th of the year following the tax year.

- Corporate income tax payments are made on a monthly or quarterly basis, depending on the size of the company and the industry.

- Personal income tax payments are made through the MTD system, with deductions made on a monthly basis.

- Late tax payments are subject to penalties and interest charges.

Malaysia has been implementing tax reforms in recent years to improve tax collection and compliance, such as the introduction of the goods and services tax (GST) in 2015, which was replaced by the sales and services tax (SST) in 2018. The government also offers various tax incentives and exemptions to promote investment and economic growth in the country.

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