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25 AUG 2021
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9:12 AM

The Advantages of Forming A New Company in Malaysia

Post title 'Why Start a Company in Malaysia' on a green banner overlaying image of 3 young professionals interacting in front of a window view of KL Tower

Thinking about a business opportunity in Malaysia? So what are the advantages of new company incorporation in Malaysia? Being a multi-ethnic, multilingual, and multicultural country certainly has its advantages. Malaysia is among the most dynamic business hubs in the South East Asian region, with equal amounts of active participation from the public and private sectors. This guide points to some of the key advantages of registering a new company in Malaysia.

Key advantages of new company incorporation in Malaysia

Asia has many great countries to consider for a foreign investor who desires to set up a base of operations in this region. Singapore is often praised as the No. 1 international business hub in the South East Asia region, but Malaysia is not to be neglected either. Welcoming and friendly, Malaysia has successfully attracted many foreign investments into the country over the years. Among the advantages of registering a company in Malaysia are-

1. The convenience of registering a business. If all your paperwork is in order, it can be completed in as quickly as a week.

2. Its strategic position makes it easily accessible to other ASEAN economies.

3. There’s no restriction on foreign shareholding, which means businesses in Malaysia can be 100% foreign-owned.

4. Malaysia is a much more cost-effective option compared to its neighbor, Singapore. Especially if you’re considering the charge of labor.

5. English is broadly spoken as a business language, so communicating locally is not a problem.

6. Malaysia has many liberalization programs which welcome foreign investment into the country in several large sectors.

7. It has an extremely advanced foundation in both transport and telecommunications.

8. Opening a bank account in Malaysia for corporate use is a straightforward process. Also, Malaysia is home to some of the world’s significant banks.

9. It has a sound political environment and legal framework which governs the country.

Now that you know the advantages of new company incorporation in Malaysia, let’s look at the advantages of some of these individual business entities. Since Malaysia has many business entity options to choose from, it simply stands to reason that each entity would have its perks and advantages. The advantages of registering a company in Malaysia that you reap would depend on the form of business entity you choose. The Companies Commission of Malaysia (SSM) is accountable for overseeing all companies which are operating in Malaysia. Each company that operates legally must have a record with SSM, including online businesses.

So, what are some of the advantages of incorporating a company in Malaysia?

Advantages of a Sendirian Berhad Company (Sdn Bhd)

It is one of the most popular business entities for a reason. An Sdn Bhd in Malaysia is a private limited company, and to develop this entity, you must have directors and shareholders in place for the formation. You must also employ a company secretary who is residing in Malaysia. This is a mandatory requirement outlined in the Companies Act, 2016. The advantages of registering an Sdn Bhd company include-

  • Cheaper corporate tax rates
  • Increased access to capital funding
  • Limited liability
  • Being a separate entity allows perpetuity
  • Being a separate entity enables transferability of ownership
  • Expenses are deductible
  • Greater access to capital and funding

Advantages of a Limited Liability Partnership (LLP)

Wondering if the LLP business entity option is appropriate for you? Here are some of the advantages that come with this-

  • You enjoy the perks of having the best of both worlds – the advantages of an Sdn Bhd company while you work as a partnership entity. This option is a hybrid between both these entities.
  • There is no boundary on the number of business partners that you can bring on board.
  • Provides its partners with limited liability protection.
  • Low start-up and maintenance charges involved.

At Bispoint, we’re proud to be the top business incorporation specialists in Malaysia. We’re known for our expertise and services in a range of comprehensive business and financial solutions for small and medium-sized enterprises (SMEs) in Malaysia, including accounting, tax compliance, company registration and financial due diligence. 

Our team of highly skilled professionals can swiftly and expertly implement solutions to meet your business needs. Currently, we have over 70 dedicated teams, including Chartered Accountants, managers, supervisors, and junior associates in our offices serving over 1,000 private companies. Speak to us to learn how we can help you kickstart your business journey in Malaysia.