Guide to Starting an IT Solution Business in Malaysia
Planning to set up an IT company in Malaysia? An IT company encompasses a wide area as the IT field is vast and is spread out over several sectors. In Malaysia, investors are able to set up an IT company, but because the IT field is one that is so wide, investors will be required to obtain specific licenses if they are going to be allowed the right to perform designated business activity in Malaysia.
When it comes to setting up an IT company in Malaysia, investors would need to be aware of the following rules and regulations, which include:
- The Digital Signature Act – This safeguards a person’s identities online.
- The Computer Crime Act – This refers to the illegal accessing on both natural persons and legal entities’ computers.
- The Copyright Act – This represents the regulatory framework for the protection of copyrighted material online.
- The Telecommunications & Multimedia Act – Regulates the IT industry. This is one of the most important acts in operating in the IT field because it gives a comprehensive perspective on the licenses which are required for businesses, along with the roles played by the main regulatory institution.
- The Telemedicine Act – This regulates the way healthcare givers are able to provide medical consultations online.
Getting Started Registering an IT Company in Malaysia
To get started registering a company in Malaysia, you would first need to register with the Companies Commission of Malaysia. IT companies are able to apply for the MSC Malaysia status, which can be awarded by both local and foreign companies which develop or use multimedia technologies in order to either produce or enhance their products and services.
To apply for the MSC status for your IT company, your company would first need to fulfil the following eligibility criteria:
- Be established a s a separate legal entity for MSC-qualifying activities
- Comply with the environment guidelines
- Be a provider/developer and/or heavy user of multimedia products and services
- Employ a substantial number of knowledgeable workers in the company
- Offer a strong value proposition specifying how operations will be able to contribute to the development of MSC here in Malaysia.
An IT company which has been established with an MSC status has benefits that go along with the title, and these benefits include:
- A Pioneer Status – Which allows 100% tax freedom on taxable statutory income for a period of 10 years.
- Duty Free Importation – In reference to the import duty and sales tax exemption applications. This incentive is part of the MSC Malaysia Bill of Guarantees.
- Foreign Knowledge Workers – In reference to the application services for the employment pass of Foreign Workers being brought in to work in Malaysia.
- Investment Tax Allowance – 100% deduction on capital qualifying expenditure
Need some help acquiring an MSC status for your company? 3E Accounting is more than happy to assist, and we can help evaluate your business model to identify the MSC qualifying activities of the company and more. Contact us today for more information on how to get started and to find out more about the helpful services that we offer.