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Increasing Trend Of Incorporation Of Company In Malaysia

Updated: Aug 23



In 2021, Malaysia is quickly gaining notoriety as one of the fastest growing business industries in Southeast Asia. Boasting immense diversity, this dynamic business hub is surely rising to be one of the most attractive places to do business, be it through home grown entrepreneurs or maybe even foreign investors. With the English language widely used in Malaysia, foreign investors are finding that business can be done with ease through smoother communication. As such, the incorporation of company in Malaysia is increasing tenfold yearly, as businesses look to capitalise on the economic stability Malaysia boasts. With this in mind, here we aim to discuss the advantages of incorporating a company in Malaysia.


1. Tax Advantages

When compared with other countries, it is evident how Malaysia has a significantly lower corporate tax rate. Resident companies, also known as Sdn Bhd companies, benefit from only being taxed on their profits, which stands at a mere 17% for the first RM 500,000 of profit. This amazingly low tax rate brings along a stable business model where business owners enjoy a certain level of flexibility. Incorporation of a company in Malaysia would mean that resident companies would worry less about paying high corporate taxes that ultimately have an adverse effect on a company’s profits.


2. Ease of Doing Business

Malaysia, as mentioned earlier, is rapidly becoming an attractive business hub for residents and non-residents alike. As reported in the World Bank’s Ease of Doing Business in 2020, Malaysia sat in 12th place, which is a major sign of how business is conducted easily here. Incorporation of company in Malaysia only requires a simple registration process that avoids eating up precious time. This quick process entails choosing a business entity and a company name as its first step. What follows is registering your business under the Companies Commission of Malaysia. This process ends with simple compliance related matters that are to be ongoing, such as filing annual returns and taxes.


3. Educated Labour

Another reason as to why Malaysia is rapidly becoming a major business hub is credited to its highly educated workforce. Here in Malaysia, there is priority given to high-quality training and education, which has culminated in a workforce equipped with necessary skills to further enhance one’s organization. Foreign investors are drawn to the impressive workforce available in Malaysia as they look to enjoy their own success in the field. Malaysia’s workforce meets the demand for skilled labour in various sectors, with skill development centres and technical schools giving birth to these workers every day. Incorporating one’s company here in Malaysia is sure to be a smart decision, as the labour here will certainly help you achieve desired business goals.


4. Suitable Infrastructure

As the years have passed, Malaysia has slowly but surely developed infrastructure supported by excellent planning, which has made it an efficient logistics hub. Companies around the globe are able to deliver products in and out of Malaysia with ease due to its air connections and well-constructed maritime. When transportation of goods in the country is concerned, Malaysia is structured with well-built roads that ease the transportation process for more efficient business to be carried out. Hence, starting up a company here in Malaysia would allow for an efficient logistics function that is sure to help one’s business to ensure their products reach their intended destinations with ease.


In conclusion, the facts are clear in showing how incorporating a company in Malaysia has many advantages that will greatly determine the longevity of your business. It remains a growing business hub and big things are to come in the following years.