Malaysia
Malaysia is located in Southeast Asia, consists of 13 States and 3 Federal Territories and boarders Thailand, Indonesia and Brunei. With a population exceeding 27 million Malaysia is one of the fastest and most stable developing regions in Asia. Malaysia has evolved from a raw material producing economy to a dynamic, emerging multi-sector economy which includes hi-tech and medical and pharmaceutical industries in addition to possessing a thriving oil and gas industry.
Growth has been slowing in Malaysia recently with GDP decreasing from 7.2% in 2010 to 5.1% in 2011. This is mainly due to the impact from the on-going Eurozone crisis however Malaysia remains a buoyant economy with the domestic sector driving growth leading Malaysia to become increasingly less influenced by global economic impacts.
The banking sector in Malaysia has developed in recent years to become a robust pillar of the financial system. Spurred on by competitive pressures in the region and financial liberalization the banking system has advanced which has contributed to ensuring numerous international banks are located in Malaysia.
Strengths of Malaysia:
- Malaysia has been placed on the ‘White List’ of jurisdiction as the OECD has recognized Malaysia as having implemented the required tax related standards.
- Proactive policies by the government ensure Malaysia provides numerous opportunities for growth
- The Corporate Tax Rate in Malaysia is 27% and in addition to this the government offers a wide range of benefits, specifically in relation to manufacturing.
- Malaysia is ranked as the 21st most competitive economy in the 2011 World Economic Forum’s Global Competitiveness Yearbook.
- Malaysia has a liberal exchange control system which enables businesses to deal freely in foreign exchange with very little restrictions
- Malaysia has a developed and stable banking system with many international banks located in the country.
- Malaysia offers a young, educated and competitively priced workforce.
- Malaysia has a well-developed infrastructure in relation to other newly industrialized countries in Asia.
Please contact us if you require our Malaysia Fact Sheet and Fee Schedule.
Summary of Requirements for a Limited Liability Company, Sdn.Bhd
| General Information |
| Type of Company |
Limited Liability Company, Sdn. Bhd. |
| Timescale to incorporate |
Approx. 2 weeks |
| Corporate Taxation |
28% Corporate Tax on all income. Some withholding taxes applicable; 15% on Interest and 10% on Royalties. It is advisable to Appoint a Licensed Tax agent, Eltoma can assist with this. |
| Double Tax Treaty Access: |
Yes, a Malaysian company can access double taxation treaties with 68 countries |
| Directors |
| Minimum No. Required |
2 Local Directors Required however can also appoint foreign directors. |
| Local Director Required |
Yes, 2 Local Resident Directors are required. Eltoma Corporate Services can provide this service |
| Publicly accessible information |
Yes |
| Location of Meetings |
Anywhere |
| Additional Information |
A Local Director Deposit is required to be paid for each director appointed. This is 1,500.00 USD for each director and is refundable upon cessation of service. |
| Shareholders |
| Minimum No. Required |
2 |
| Publicly accessible information |
Yes |
| Location of Meetings |
Anywhere |
| Company Secretary |
| Required |
Yes |
| Local Secretary Required |
Yes, must be a resident of Malaysia |
| Registered Office Required |
Yes |
| Share Capital |
| Standard Currency |
RM (Malaysian Ringgit) |
| Standard Authorised |
Minimum Authorised Capital RM 100,000 (approx.30,000 USD) |
| Minimum Paid Up Capital |
Minimum Paid Up Capital RM 2.00 (approx. 1.00 USD) |
| Accounting & Compliance |
| Requirements to prepare Accounts |
Yes. |
| Requirement for Audit |
Yes. All Malaysian Companies must appoint an auditor before the first AGM. |
| Local Auditor Required |
Yes. |
| Requirement to File Accounts |
Yes |
| Requirement to file Annual Return |
Yes |
| Additional Information |
| VAT |
GST (Goods & Services Tax) currently stands at between 5% – 10%. Obligatory if the annual company turnover exceeds PM 100,000 (approx. 30,000 USD). |
| Bank Account Opening |
Many large international banks such as HSBC, Citibank and Standard Chartered are located in Malaysia. |
Procedure to Incorporate:
Eltoma Corporate Services will manage the incorporation process ensuring this is carried out in the quickest timescale possible. We require the following in order to proceed:
- Completed application form
- A certified copy of each director and shareholder passport
- Two utility bills that are under 3 months old
Upon receipt of the above the following is completed:
- Obtain company name approval (normally received within 48 hours)
- Submit the application to the Companies Commission
- Within approximately 10 working days the company will be incorporated
- Registration with the Taxation Department will take place after incorporation.
Eltoma Corporate Services can provide all post incorporation services, please contact us for a fee schedule and quotation.
Fee Schedule (USD):
Incorporation:
- All Government License Fees
- Certificate of Incorporation
- Share Certificates
- First Directors Minutes
- Filing of all documents with the Companies Commission
- Courier fees
- Company Stamp & Seal
- Registered Office
- Secretary
- Annual Fee for 2 x Local Directors (including Provision of Directors Residential Address)
ADDITIONAL FEES:
- Local Directors Deposit Payment (for the obligatory 2 x Local Directors)
*Please note that this is a deposit only and will be held in a client account and returned on cessation of service should all be in good order.
|
USD 6,500.00
*USD 3,000.00
|
Bank Account Opening Fees:
- Malaysian Bank Account Opening
- Cyprus Bank Account Opening Fee
|
USD 950.00
From USD 325.00 + the required Legalization Fee
|
Annual Renewal Fee:
- Registered Office & Secretary Fee
- Payment of Government Fees
- Annual Fee for 2 x Local Directors
|
USD 2,250.00
|
Additional Fees:
- Registration of Tax File Numbers (Corporate & Employee Tax File)
|
USD 350.00
|
| Accountancy Fees: |
Quotations can be provided based upon the approximate number of monthly transactions and estimated turnover
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