Registering A Malaysian Company

🌏 1、 Core advantages of Malaysia's investment environment (2025 new policy) 1 Triple upgrade of policy dividends

Tax Depression:

The income tax rate for ordinary enterprises is 17% -24%, while the tax rate for small and medium-sized enterprises (with paid in capital ≤ 2.5 million Malaysian Ringgit and annual income ≤ 50 million Malaysian Ringgit) is 17%.

Green economy privileges: Renewable energy and electric vehicle companies enjoy 10 years of tax exemption and land rental subsidies (such as Ningde Times Penang factory receiving 120 million ringgit support).

Foreign investment friendly:

Industries such as manufacturing, technology, and digital economy allow 100% foreign ownership without mandatory local directors (50% lower cost compared to Singapore).

Trade hub:

With the help of RCEP and 16 free trade agreements, 90% of goods are exported to ASEAN/China, Japan, and South Korea with zero tariffs (for example, Shenzhen photovoltaic enterprises exporting to Vietnam through Malaysia have tariffs ranging from 8% to 0%).

2. Industry Adaptability Guidelines

Recommended industriesadvantageous regionpolicy support
Semiconductor/Electronic ManufacturingPenang, Kuala Lumpur50% of global semiconductor packaging capacity gathers, and BOI enterprises are exempt from mechanical import tariffs
Halal productsJohor StateJAKIM Halal Certification is globally recognized, covering 61% of the Muslim market in the Middle East
digital economyJohor Singapore Special Economic ZoneCorporate income tax of 5%+free cross-border flow of data

⚠️ Restricted areas: Foreign ownership in the financial industry is ≤ 70%, and furniture manufacturing requires Thai capital holding (new regulations by 2025).


📊 2、 Comparison and Selection Guide for Company Types (Simplified Version 2025)

typeShareholders/Directors' RequirementsForeign investment restrictionsApplicable scenariosAnnual maintenance cost
Private Limited Company (Sdn Bhd)≥ 1 shareholder+≥ 1 director (1 must be a Malay resident)Manufacturing/technology can be 100% foreign-fundedMainstream choice of Chinese funded enterprisesAbout 500-1000 ringgit
Limited Liability Partnership (LLP)≥ 2 partners (without nationality restrictions)100% foreign investment is allowedLight asset start-up, low-cost trial runAbout 200 ringgit
Representative Office (RO)Wholly owned by the parent companyProhibited business activitiesMarket research period enterprises60-300 forests

💡 Selection strategy:

Long term operation: Priority given to Sdn Bhd (financing convenience+limited liability);

Quick trial run: Choose an LLP (no audit requirements+establishment only 1-3 days).


⚠️ 3、 Registration Core Requirements and Risk Avoidance 1 Exclusive threshold for foreign investment

Name specification: Must include the suffix "Sdn Bhd", name approval takes 1-2 days (cost 30 ringgit).

Registered capital

There is no minimum limit, but it is recommended to be ≥ 1 ringgit (manufacturing industry requires ≥ 100000 in practice).

Actual payment requirement: At least 25% must be paid during registration.

Address compliance: Actual office address within Malaysia is required (virtual address only for representative offices).

2. Risks of the New Policies in 2025

Origin fraud: The United States is cracking down on "Made in Malaysia" and requires a regional value content of at least 40% (with a focus on regulating furniture and electronic products);

Labor quota: Hiring foreign employees must be accompanied by at least 2 Malay employees, and it must be proven that the position cannot be replaced locally.


📍 4、 Regional policy dividends and industrial adaptation

regionPolicy HighlightsAdapt to the industrytax incentives
Johor Singapore Special Economic Zone100% foreign land ownership+5% preferential tax rateDigital economy, green energy100% tax subsidy for logistics enterprises
PenangGlobal semiconductor packaging center, mature supply chainElectronic manufacturing, medical devicesBOI enterprises are exempt from import tariffs
East Malaysia Sabah/SarawakSupport for remote areas, reducing land costs by 40%Agricultural technology, ecotourismIncome tax of 15%

Architectural design suggestions:

China Holdings → Hong Kong Company → Malay Entity (using the China Malaysia tax treaty to reduce dividend provision tax to 5%);

Halal product companies need to plan ahead for JAKIM certification (with a cycle of 4-6 months).


⏳ 5、 Registration Process and Timeframe (2025 Optimized Version)

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Total cycle:

Sdn Bhd: 3-4 weeks (expedited agents can be shortened to 2 weeks);

LLP/Representative Office: 1-3 days.

Key costs: Official fee of 1010 ringgit (Sdn Bhd)+annual secretary fee of 1000-2500 ringgit.


📅 6、 Annual Maintenance and Compliance Key Points 1 List of Mandatory Matters

matterCycle/Deadlinepenalty
Financial statement submissionWithin 30 days after the end of the fiscal yearDaily penalty of 100 ringgit for overdue payments
corporate income taxAnnual declaration (within 150 days)+semi annual prepaymentLate payment fee of 0.75% per day
Value added tax (SST)Monthly declaration (before the 23rd of the following month)Failure to report and make up for+1.5 times the fine
Company Information UpdateRecord with SSM within 14 days after the changeLicense invalidity risk

2. New Policies in 2025

SST exemption upgrade: Leasing/financial enterprises with annual sales ≤ 1 million ringgit are exempt from service tax (original threshold of 500000);

Audit exemption: Small businesses (annual revenue ≤ 500000 Malaysian Ringgit) are exempt from audit.


Hongyuan International | One stop Service Expert for Enterprises Going Global

H & Y  INTERNATIONAL 


core business

✅  Overseas company registration (Hong Kong, Singapore, etc.)

✅  Overseas bank account opening and secretarial services

✅  International tax planning and cross-border financial and tax services

✅  Overseas architecture design and overseas investment filing

✅  Global Intellectual Property and Identity Planning


Service Advantages

-Professional integrity and efficiency: With over 15 years of industry experience, we focus on the global development of enterprises

-One stop solution: from registration to architecture, finance and taxation, identity, covering the entire process

-Butler style customized service: one-on-one professional consultant, tailored overseas plan

-Word of mouth guarantee: helping enterprises expand steadily and win industry trust


Service Advantages

📞  Hotline: 400 118 5939 138 2880 5818 (same as WeChat for mobile phones)

🌐  Service philosophy: Professional planning, efficient execution, helping enterprises set sail globally!  



 
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