There are several ways of doing business in Malaysia, the most common being the setting up of a limited liability company. Foreign companies can also register a branch in Malaysia, or a representative office if they plan to run only marketing operating in Malaysia.
A foreign company setup / expand their business in Malaysia by either:
– Incorporating a local company with the Companies Commission of Malaysia (SSM) – Registering the foreign company in Malaysia with SSM
Our team of Malaysian company formation specialists can provide foreign investors with assistance for the incorporation of a Foreign Subsidiary /branch in Malaysia
Steps to Foreign Subsidiary Incorporation
To incorporate a Foreign Subsidiary, these are the general requirements and procedures needed:
Directors: A minimum of one director (can be a foreigner) is mandatory.
Shareholders: The shareholder can be an individual or a corporate entity. 100% local or foreign shareholding is allowed. A director and shareholder can be the same or different person.
Paid-up Capital: Minimum paid-up capital for registration of a Malaysian company is RM1000.
Registered Address: The address must be a physical local address.(PO Box is not allowed.)
Company Secretary: Companies Act requires one Company secretary who must be a natural person and an ordinarily resident of Malaysia.
Unless exempted from audit requirements under the Companies Act, every company must appoint an auditor within three months after its incorporation.
Preparation of memorandum & articles of the company and other incorporation documents
Preparation of registration forms
Professional & Filing Fees
E-Certificate of incorporation
Preparation of compliance corporate kit, including corporate seal, share certificates, register and minutes book
Minutes of first board meeting
Resolution to open a bank account
Once your company is incorporated, you have to think to open a corporate bank account with any of the local and international banks in Malaysia. Opening a corporate bank account in Malaysia is a simple and quick procedure. The important thing is that you have to choose the bank which offer corporate accounts features can fulfill the banking needs of your company.
Requirements for Opening a Corporate Bank Account Basically, the followings are the required documents to open a corporate account in Malaysia banks:
Completed Corporate Account Opening Forms Board of Directors Resolution approving the opening of the account and the signatories to the account
Certified True Copy of Certificate of Incorporation (must be certified by the company secretary or one of the directors)
Certified True Copy of Company’s Business Profile from Company Registrar
Certified True Copy of Company’s Memorandum and Articles of Association (MAA)
Certified True Copies of Passport (or Singapore IC) and
Residential Address Proof of Directors, Signatories, and Ultimate Beneficiary Owners.
If you are in Malaysia, just bring the originals and the bank will make a copy. Malaysia banks may ask you to produce additional documents depending on the case. Generally, the majority of the banks require that the account signatories and majority directors be physically present in Malaysia for signatures at the time of opening the company bank account.
Foreign Company Setup in Malaysia FAQs
Why are Foreign Companies’s Branch Offices disqualified from receiving Local Tax Incentives?Tiwi2021-02-09T09:31:35+08:00
The local tax incentives on offer are only available to resident companies. Since foreign companies’ branch offices are defined as non-resident companies, they are not allowed to claim any local tax incentives
What defines a Company as a Tax Resident of Malaysia?Tiwi2021-02-09T09:24:15+08:00
A company is defined as a tax resident of Malaysia if the management and control of its corporate affairs take place in Malaysia. If at any time during the year, at least one meeting of the board of directors is held in Malaysia, the company will be regarded as a Malaysian tax resident.
What Corporate Taxes are Imposed on a Sdn Bhd Company?Tiwi2021-02-09T09:21:18+08:00
Ever since the 2018 year of assessment, Malaysian Sdn Bhd companies which have resident status are taxed at 19% if their net profit is below RM500,000 and 24% otherwise. Non-resident Sdn Bhd companies, which are those with over 50% of their shares owned by foreigners, are taxed at a flat rate of 24%.