1. Economic environment:

Malaysia is known for a stable economy and an attractive business environment. The country regularly ranks high in international rankings for business investment attractiveness. Malaysia offers a well-developed infrastructure, efficient logistics and a modern communication structure. In addition, Malaysia has an educated workforce and growing consumption potential.

2. Legal framework:

The Malaysian government has taken numerous measures to facilitate the establishment of new companies. The country offers a transparent and efficient registration system that makes it possible to set up companies quickly and easily. There are various company structures to choose from, such as the Private Limited Company (Sdn Bhd), which is particularly popular with foreign investors.

3. Foreign investment:

Malaysia is open to foreign direct investment - with no restrictions in most industries. In addition, the government offers generous incentives and tax benefits for foreign investors. These incentives include, for example, reduced taxation for certain industries and the opportunity to acquire ownership of real estate.

4. Geographical location and infrastructure:

Malaysia is located in the heart of Southeast Asia and offers an ideal location for companies wishing to operate in the region. The country has world-class ports, airports and road links that facilitate trade and transport. Its proximity to major markets such as China, India and the ASEAN countries makes Malaysia an ideal hub for trade.

5. Cultural diversity and language skills:  

Malaysia is known for its cultural diversity, with a mix of Malay, Chinese, Indian and indigenous influences. This diversity creates a business-friendly environment where different cultures and business practices meet. The majority of the population speaks English, which makes communication easier for international business people.

There are some important aspects to consider when setting up a company in Malaysia:

1. Legal form: Choose the right legal form for your company. The most popular legal form for foreign investors is the Private Limited Company (Sdn Bhd). This offers flexibility, limited liability and allows foreign investors to hold shares in the company.
2. Company name: Ensure that the company name you have chosen is not already in use and meets the legal requirements. Check the availability of the name with the Companies Commission of Malaysia (SSM).
3. Minimum capital requirements: Check the minimum capital requirements for the legal form you have chosen.
4. Business address: You need a valid business address in Malaysia. This can either be an office or a commercial property.
5. Business licence: Depending on the nature of your business and industry, you may need business licences or permits from the relevant authorities in Malaysia. Find out in advance about the permits required for your business.
6. Taxes and accounting: Find out about the Malaysian tax system and accounting requirements. Malaysia offers tax incentives for certain industries and investments. It may be advisable to consult an accountant or tax advisor to ensure that you meet all tax obligations.
7. Labour law: Find out about the applicable labour laws and regulations in Malaysia. Ensure that you comply with the required employment contracts, salaries and benefits as per Malaysian regulations.
8. Visa and work permit: If you plan to live and work in Malaysia, you will need to go through the relevant visa and work permit procedures. Make sure you understand the entry requirements and requirements for foreign workers.
9. Sector-specific regulations: Some industries such as financial services, telecommunications, education and healthcare have specific regulations and additional licensing requirements. Find out about the industry-specific regulations to ensure you obtain all the necessary permits.
10. Beratung und Unterstützung: Es ist wichtig, dass Sie sich gründlich über die rechtlichen, steuerlichen und geschäftlichen Aspekte informieren, um einen reibungslosen Gründungsprozess und einen erfolgreichen Start Ihres Unternehmens in Malaysia zu gewährleisten.

Contact the experts at InterGest Malaysia before setting up your company in Malaysia. We take care of the implementation of the requirements for setting up a company and much more. In addition to incorporation and administration, our services include: Bookkeeping and business accounting, controlling and reporting, consolidation, SAP accounting, cash and credit management, staff recruitment and management, payroll, legal and tax advice, dunning and debt collection as well as sales set-up support.

In Malaysia, there are various types of companies that can be used by businesses. The most common types of companies in Malaysia are:

1. Sole Proprietorship: A sole proprietorship is operated by an individual who is responsible for all the obligations and liabilities of the business. It is the simplest and least expensive form of company formation.
2. Partnership: A partnership is an agreement between two or more people to run a business together. The partners share the responsibilities, profits and losses of the business.
3. Private Limited Company: A Private Limited Company is an separate legal entity with shareholders. The liability of the shareholders is limited to their capital contributions. An Sdn Bhd must have at least one director and one shareholder. 
4. Public Limited Company (Berhad): A Public Limited Company is similar to a Private Limited Company but it can trade shares on the stock exchange. There are stricter rules and regulations for a Berhad compared to an Sdn Bhd.
5. Limited Liability Partnership (LLP): An LLP combines the advantages of a partnership and a limited liability company. The partners are not personally liable for the debts or liabilities of the LLP.
6. Branch Office: A foreign company may open a branch in Malaysia to carry on its business activities. A branch is not a separate legal entity and is controlled by the parent company.

The choice of the appropriate company form depends on various factors such as company size, liability limitations, tax implications and regulatory requirements. It is recommended to seek professional advice to determine the best form of business for your particular needs. InterGest Malaysia can advise you on the various incorporation options to consider. We draw on decades of expertise in asset management, corporate advisory, business development as well as planning and implementation of transnational structures in the target market of Malaysia.