Frequently Asked Questions

Updated on Monday 24th April 2017

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Local or foreign businessmen who are interested in opening a company in Malaysia have to follow a set of procedures, imposed by the Malaysian legislation. Our company formation specialists have created a list containing answers related to the most common questions that are usually addressed by those who want to set up a company in Malaysia

Investors can find out more details below on the frequently asked questions referring to the registration of a company in Malaysia


1. What types of legal entities can be incorporated in Malaysia? 

Foreign businessmen are allowed to incorporate the following legal entities

•    limited company;
•    partnership;
•    sole proprietorship 

The most common type of business in Malaysia is the limited company, which can be set up as public or private company. 

2. Are foreigners allowed to open a company in Malaysia? 

Foreign businessmen are allowed to set up a company in Malaysia, but in certain conditions, on which our team of company incorporation agents can provide an extensive presentation. 

3. How long does it take to open a company in Malaysia? 

It takes less than two weeks (usually, from 8 to 10 days) to open a company, which can start its business operations immediately.

4. Is it necessary to open an office? 

Yes, it is required to establish a business address, representing the company. 

5. What are the main steps for the incorporation in Malaysia? 

All companies opened here are required to register at the Companies Commission of Malaysia. The process begins by proposing a business name, register the company under a legal entity and comply with the requirements of the local authorities (register for taxation, social security, insurance). 

6. What is the minimum share capital in Malaysia?

The minimum share capital for companies in Malaysia is established in accordance with the legal entity representing the business; for example, the private limited company requires a minimum share capital of RM 400,000.

7. Is it compulsory to open a corporate bank account? 

Companies set up in Malaysia are required to open a bank account, in which they will deposit the minimum share capital, as prescribed by the legislation. 

8. Are special permits and licenses required in Malaysia? 

The Malaysian legislation stipulates that companies should obtain special permits and licenses in accordance with the business operations they carry out.

9. What is the corporate tax rate in Malaysia?

The corporate rate has recently been changed, and from the beginning of 2016, this tax has been lowered. At the moment, the standard corporate rate is 24% for resident companies, or 19% for the first paid-up share capital with a value of MYR 500,000. 

10. Why is Malaysia an attractive investment location?

Malaysia is a country that sustains foreign investments; at the same time, the state offers an attractive environment, with young and qualified workforce in a market-oriented economy. The country has liberal policies related to investments and a developed infrastructure. 

Persons who need to receive more information on the business environment can contact our team of company formation consultants in Malaysia