Doing Business in Malaysia VS Lithuania – A Comparison
Entrepreneurs aiming to expand in Asia or Europe often find themselves torn between two very different but equally attractive markets: Malaysia and Lithuania. Each country offers unique advantages—from low startup costs to digital efficiency—making the choice a real dilemma for global investors.
Malaysia is ideal for those starting a business in Malaysia due to its affordability, skilled workforce, and central ASEAN location. Lithuania, by contrast, is a fast-growing EU tech hub known for digital innovation and startup support. Below, we compare both countries in detail so you can choose based on your priorities.
Malaysia: Political stability, strong legal frameworks, and active government support through MIDA and the Companies Commission of Malaysia (SSM) make Malaysia a top choice in Southeast Asia.
Lithuania: A member of the EU and Eurozone with strong institutions and a highly digitalized public sector, Lithuania ranks well for ease of doing business and low bureaucracy.
Taxation
Malaysia: The corporate tax rate is 24%, but small and medium enterprises enjoy reduced rates and exemptions. No capital gains tax applies to most asset disposals. More details are available under our services.
Lithuania: The corporate tax rate is 15%, one of the lowest in the EU. Capital gains are taxed as part of corporate income, but startups may access tax reliefs and innovation grants.
Ease of Company Incorporation
Malaysia: With online registration through the SSM and fast approvals, the process is quick. For a seamless setup, consider company incorporation in Malaysia with local experts like 3E Accounting.
Lithuania: Company formation is simple, especially for EU residents. Most steps are digital, and non-EU residents can still register through legal agents or e-Residency-like processes.
Cost of Living and Business Operations
Malaysia: One of the most cost-efficient places in Asia. Office rent, salaries, and utilities are low. Many startups benefit from using affordable company incorporation services.
Lithuania: Lower cost of living than Western Europe, though still higher than Malaysia. Office rent in Vilnius is reasonable, and tech labor is affordable compared to other EU capitals.
Access to Markets
Malaysia: Strategically located in the heart of ASEAN, with access to 650 million consumers. It’s a smart launchpad for anyone setting up businesses in Malaysia aiming for regional growth.
Lithuania: EU and Schengen access, close ties to Nordic and Eastern European markets, plus digital infrastructure that appeals to startups targeting the European market.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
Malaysia
Lithuania
Business Environment
Stable, supportive government, investor-friendly
EU member, digitally advanced, startup-friendly
Corporate Tax Rate
24%
15%
Capital Gains Tax
No
Yes (included in corporate income)
Ease of Incorporation
Online, 1–3 days via SSM
Fully digital, quick for EU residents
Business Costs
Low operating and living costs
Moderate by EU standards
Market Access
ASEAN, CPTPP, RCEP
EU, Nordic, and Eastern Europe
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.
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
Malaysia offers lower startup and operational costs compared to most Asian and European countries. Entrepreneurs starting a business in Malaysia can benefit from affordable office rentals, competitive salaries, and government-backed incentives.
Malaysia has a corporate tax rate of 24%, while Lithuania offers a lower rate of 15%. However, Malaysia provides various exemptions and tax incentives, especially for SMEs. You can explore these in the range of services available to support tax planning.
Using professional company incorporation services helps avoid delays, ensures compliance, and offers expert advice on structure, licensing, and taxes.
Lithuania has strong digital infrastructure and a growing fintech sector. However, Malaysia is increasingly attractive for tech startups, especially for those setting up businesses in Malaysia focused on Southeast Asia’s fast-growing consumer base.
You can contact 3E Accounting for assistance with licensing, setup, registration, and post-incorporation compliance.
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.
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