Why Investors Would Choose to Have their Company Registered in Malaysia?
Malaysia has always been a country that attracts a lot of interest from investors, whether international or local. Why investors would choose to have their company registration in Malaysia has a lot to do with the following factors:
- Company registration in Malaysia involves a low start-up costs if compared to other countries such as Singapore for example.
- A company registration in Malaysia allows that company to benefit from the country’s double taxation treaties if they are resident companies, which minimize the withholding taxes on fund transfers overseas. There are also no withholding tax levies on dividends which are made abroad by Malaysian owned businesses.
- Malaysia is ranked by the World Bank as the 6th easiest place in the world to do business and the country has also been ranked as the 25th most competitive economy in the world.
- A company registered in Malaysia would be eligible to be part of the free trade agreements which have been signed between Malaysia and six other ASEAN countries.
The company registration process in Malaysia involves going through the Companies Commission of Malaysia, known locally as the SSM. The SSM is the governing body that is responsible for all successful company incorporations in the country and every business must deal with them for the company registration process.
A company limited by shares is generally the most common type of business entity opted for when it comes to company registration in Malaysia. This particular business entity model provides limited liability status to its shareholders.
Investors who intend to use this option as their preferred company registration in Malaysia pathway would need to fulfil the following requirements:
- Have a minimum of one director who is at least 18 years of age and currently residing in Malaysia at the time of incorporation. The selected candidate must not have undergone bankruptcy, been convicted or imprisoned for the past 5 years.
- Have one company secretary who must be a member of any of the prescribed professional bodies or licensed by the SSM.
- Have a minimum paid-up capital of at least RM1.
- Have an official registered office in Malaysia where all business communication and notices may be addressed to. Investors could opt to have their secretarial office as the registered office if needed.
For a foreign investor who is not familiar with the local laws and the process of company registration in Malaysia, it is always a good idea in this instance to enlist the help of a professional service provider like 3E Accounting. The benefits of working with a professional service provider include peace of mind for the investor as they know they will be in good hands with an expert to guide them through the process and ensure that their company registration in Malaysia is in compliance with all the existing statutes, laws and regulations.