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Setup A Company in Malaysia

Malaysia is gaining traction as one of the best locations for starting a business in the Asian Pacific region. The country has a steady improvement in its business environment for domestic medium and small-sized enterprises, placing it in 12th place out of 190 economies in the World Bank’s 2020 Doing Business Ranking. This progress demonstrates the government’s commitment to developing business opportunities, job creation, innovation and assurance for aspiring entrepreneurs and other private industries.

Here are other rankings of Malaysia across the globe as of 2020:

  • 2nd in dealing with construction permits
  • 2n in protecting minority investors
  • 4th in getting electricity
  • 33th in registering property
  • 37th in getting credit
  • 35th in enforcing contracts
  • 40th in resolving insolvency
  • 49th n trading across borders
    The country offers stable and affordable living with an abundance of business opportunities. Following the issuance of the LLP or Limited Liability Partnership Act in 2013, which provided utmost flexibility to LLP and business owners in the aspect of formation, maintenance and termination, the cost for setting up and registering a business and companies in Malaysia is greatly reduced.

    Besides, the country stands as an industrial hub. A foreign-owned company can invest in any business sector due to the availability of talented labour and inexpensive raw materials, allowing the Malaysian manufacturing centres to thrive significantly. The country offers various natural resources, including palm oil, timer oil, tin and rubber.

    Because of Malaysia’s vast development, it is recognised as a destination full of unrealised potential by the WTTC or the World Travel and Tourism Council. Therefore, setting up a company in Malaysia offers great potential for their investment and business growth.

    Other key advantages of setting up an Sdn Bhd company in Malaysia include:

  • Setting up a business in Malaysia allows the company to introduce its products in limited areas and gain an opportunity to trade with other Asian markets, including Singapore, China, Vietnam, India, and Myanmar.
  • Company registration in Malaysia requires a comparatively low start-up cost compared to other nations.
  • The resident firms benefit from Malaysia’s extensive network of double taxation treaties that decrease fund transfer restrictions abroad.
  • No restriction on repatriation of dividends, capital, profits and royalties to businesses in the country.
  • A resident trade can benefit from the FTAs or free trade agreements between the country and other ASEAN nations.
  • Malaysian businesses do not withhold tax on dividends made abroad.
  • Businesses in the country obtain duty-free trade via free ports in Port Klang, Pasir Gudang, Kulim Hi-Tech Park, Ban Lepas and Port of Tanjung Pelepas.
  • Malaysian companies that have a share capital of more than RM 500,000 can sponsor their directors’ visas.
  • A relatively more cost-effective skilled and younger workforce.
  • Provides various business structures, such as LLP, private limited companies (Sdn Bhd), representative offices and branch offices.
  • Attractive incentives for foreign entrepreneurs and investors.
  • Malaysia’s government policies are liberal to all.
  • What You Need to Know About Malaysia

    The second language after Malay in Malaysia is English, which is spoken by nearly seventy percent of the population. Generally, business owners should speak both languages fluently to easily deal with customers, employers, and suppliers and avoid any misunderstanding with regards to a deal.

    Business documentations are also available in English, which cuts the cost of translation services and saves time during the company registration process and when conducting business in Malaysia.


    Several ethnic groups represent Malaysia’s demography. As of 2020, Malaysia’s population is estimated to be at approximately 32.7 million. Its population continues to grow at a rate of 0.4 percent every year. Malaysians or Bumiputera account for 69.6 percent of the population. The Chinese population is around 22.6 percent, the Indian population is about 6.8 percent, and other ethnicities belong to 1 percent of the population. Malaysia’s population is expected to increase to 41.5 million by 2040.

    Islamic Country

    More than 60 percent of Malaysia’s population is Muslims. The country establishes halal parks, which are designed to ease the process of business registration and offer incentives for every halal-associated manufacturing sector.

    Malaysia also has Islamic banking and is home to the biggest shariah-compliant property. There is no repatriation restriction between international Shariah bank accounts.

    Type of Law


    Political Structure

    Since Malaysia’s independence in 1957, UMNO or United Malaysian National Organisation has ruled the country’s ethnically and religious diverse constitutional monarchy. However, in 2018, PH or Pakatan Harapan won the general elections, ending UMNO’s decades of political monopoly.


    MYR or Malaysian Ringgit