Doing Business in Malaysia VS Germany – A Comparison
Entrepreneurs and global investors often compare starting a business in Malaysia and Germany as part of their international expansion strategy. Malaysia attracts businesses with its affordable setup costs, business-friendly regulations, and access to ASEAN markets. Germany, as Europe’s largest economy, offers a robust industrial base, high-quality infrastructure, and a central location within the European Union, making it a strategic choice for businesses targeting European markets.
Key Comparison Points
Business Environment
- Malaysia: Malaysia provides a stable and investment-friendly environment with government incentives for company incorporation in Malaysia.
- Germany: Germany boasts a strong legal framework, transparent business practices, and a well-developed infrastructure, making it an attractive destination for foreign investors seeking stability and access to the European market.
Taxation
- Malaysia: The corporate tax rate is 24%, with tax exemptions and incentives offered through company incorporation services for eligible sectors.
- Germany: Germany has a combined corporate tax rate of approximately 30%, including federal and municipal taxes. However, it offers various deductions and incentives for research and development activities.
Ease of Company Incorporation
- Malaysia: Company setup in Malaysia is efficient, mostly digital, and managed through the Companies Commission of Malaysia (SSM).
- Germany: Company registration in Germany involves notarization of documents and registration with the local trade office and commercial register, which can be more time-consuming and may require local representation.
Cost of Living and Business Operations
- Malaysia: Setting up businesses in Malaysia is cost-effective, with low rental, labor, and utility expenses.
- Germany: Germany has a higher cost of living and operational expenses, including higher wages and office rents, particularly in major cities like Frankfurt and Munich.
Access to Markets
- Malaysia: Malaysia connects businesses to major trade blocs like ASEAN, RCEP, and CPTPP, with end-to-end support from 3E Accounting.
- Germany: Germany serves as a gateway to the European Union, offering access to a large consumer market and benefiting from numerous free trade agreements within the EU framework.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor |
Malaysia |
Germany |
Business Environment |
Stable, pro-investment, and well-regulated |
Robust legal framework, transparent practices |
Corporate Tax Rate |
24% |
Approximately 30% |
Capital Gains Tax |
Applies in most cases |
Applies, with certain exemptions |
Ease of Incorporation |
Fast, online, and supported by SSM |
Involves notarization and multiple registrations |
Business Costs |
Low startup and operational costs |
Higher operational expenses |
Market Access |
ASEAN, RCEP, CPTPP |
European Union, EFTA |

Benefits of Choosing 3E Accounting
Selecting the right partner is crucial when it comes to starting a business in Malaysia. At 3E Accounting, we offer a comprehensive range of solutions designed to simplify the entire process of company incorporation in Malaysia. From ensuring compliance with local regulations to providing expert guidance tailored to your specific needs, we make the journey seamless.
For entrepreneurs looking to navigate Malaysia company registration or explore company setup in Malaysia, our team provides unmatched expertise and support. Additionally, our company incorporation services are tailored to help you succeed in the competitive business environment.
With a deep understanding of the region’s business landscape, we also provide resources for setting up businesses in Malaysia, ensuring that every step is clear and efficient. Whether you need assistance with corporate secretarial or company secretary services, we are here to help.
To explore our services or discuss your business needs, contact 3E Accounting. With our strong presence in Malaysia and a proven track record, we are your trusted partner for success in Asia.
Ready to Expand into Malaysia? Choose 3E Accounting Today!
Stay Secure, Stay Successful With 3E Accounting Services
Contact Us Now
Frequently Asked Questions
Malaysia offers a more streamlined and digital-friendly environment for starting a business in Malaysia, while Germany requires notarization and multiple registrations, which can be time-consuming.
Yes. All private limited companies must appoint a licensed company secretary. Company secretary services are available from 3E Accounting.
You can contact 3E Accounting for a consultation and full guidance on incorporating your business in Malaysia.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.