Foreign company registration in Malaysia 2022

Foreign businessmen and companies who want to start a company in Malaysia should know details about foreign company registration in Malaysia this 2022 and business entities that permit foreign ownership. Here we will look at the available company registration options for foreign businessmen and companies in Malaysia, and will also talk about the process and requirements.

Get a RM20,000 tax rebate per year for the next 3 years when you register your company this 2022 in Malaysia.

FOREIGN COMPANY REGISTRATION OPTIONS IN MALAYSIA
Foreign investors can obtain ownership of a company by setting up one of the following foreign company registration options in Malaysia:

1. Branch office
2. Representative office
3. Private limited company

Branch office
A branch office is not a separate legal entity and is an extension of the foreign parent company. The foreign parent company is liable and responsible for all the debts and operations of the branch in Malaysia. The activities of a branch office must be the same as the foreign parent company, and a branch is suitable for foreign companies that want to expand their business to Malaysia for a short-term basis. There must be at least one Malaysian resident nominee director or agent to set up the branch in Malaysia.

• 100% owned by the head office
• Must file branch office’s as well as parent company’s audit reports
• Taxed as non-resident entity, local tax benefits not available
• Tax at 25% on profits attributable to the branch (subject to tax adjustments).
• Withholding tax of 10% + 3% is applicable on payments made to the branch for services performed in Malaysia (as branch is a non-resident for tax purposes)
• Generally tax incentives are not available to branch.

Representative office
Foreign companies that want to increase their market and understanding of the Malaysian business environment can set up a representative office. A representative office does not have an independent legal standing in Malaysia. Therefore, the parent company is responsible for the debts and liabilities.

• Name must be the same as parent company
• For Foreign Companies that wish to set up temporary vehicle in Malaysia to conduct research and act as liaison office and other activities which will not result directly in actual commercial transactions.
• The proposed operational expenditure of the RE must be at least RM300,000 per annum.
• A Representative office/Regional office will be given expatriate post and the number allowed depends on the functions and activities of the Regional Office/Representative Office. Expatriates will only be considered for managerial and technical posts. The proposed expatriate must be currently employed by the applicant company or its subsidiary or within the group.

Private limited company
The private limited company or SDN BHD is the most common type of entity for foreign investors. Foreigners are permitted to own 100% of the company. However, for some industries, they will need 50% to 60% Malaysian ownership. These industries include agriculture, banking, education, oil and gas. A private limited company or SDN BHD is a separate legal entity from its owners, meaning that it can buy or sell property, enter legal contracts and sue or get sued in courts. 

• Can use parent company name also or different name also.
• Can conduct different or multiple business activities too.
• Suitable for local or foreign companies that wish to expand their operations in Malaysia.
• Min one shareholders or can be solely owned by a corporate body (either 100% local or 100% foreign-owned*) allowed.
• One resident director are required, who need not be Malaysians but must have a principal residential address within Malaysia.
• Taxed as Malaysia resident entity, local tax benefits available.
• Tax incentives may be available depending on the type of activity undertaken and subject to meeting eligibility conditions.
• No restrictions on hiring local or foreign staff.

But for taxation intensive, staff recruitment, business visa for directors, family dependent facilities, business licenses, and many other purposes mostly foreigners chose private limited companies and we also suggest for Private limited or SDH BHD company. 

Post-registration requirements and compliance
Once you have successfully registered the company in Malaysia, you must fulfil post-registration requirements and obligations.
These requirements are:

• Opening a corporate bank account.
• Obtaining business licenses & permits (export-import licenses, CIDB, DBKL, Food licenses, etc).
• Registering as a taxpayer.
• Registering with the provident fund.
• Appointing auditors.
• Apply for WRT and ESD .
• Process business visa through ESD (under Malaysian immigration).

​Email us for more details: [email protected]

Why Lim & Ani Associates Sdn Bhd
We are providing one of the best business & company setup consultancy services in Malaysia, with experienced & licensed company secretaries, professional accountants, auditors, tax & SST experts, business advisors - a one-stop business solution in Malaysia.

As one of the best leading corporate advisors, we are offering services below as per business act 2016 & Malaysian Government policy; 

1. Company registration consultancy.
2. Business setup advisory.
3. Accounting advisory.​
4. Business licenses advisory.
5. Professional global business advisory.
6. Marketing & planning.
7. Legal business policy & HR management.
8. Business survival & transformation advisory.

Call, Email or text us.
LIM & ANI ASSOCIATES SDN BHD
Call: +60108242527 (whatsap & viber)
Call: +60172041317 (whatsapp)
Call: +601121189303
Call: +603-84081680 (office landline)
Email: [email protected]
www.mbbusinessjoint.com

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