The way of company incorporation in Malaysia is Sdn Bhd for foreigners. But, local entrepreneurs can incorporate proprietorship company through SSM. As a foreign entrepreneurs choice Malaysia as a good place of global trading. Being Malaysia is near of Singapore and Thailand huge number of foreign investors start business in their suitable sectors. Income tax, yearly cost of renewal, work permit, labor cost, banking support are excellent those makes a warm business climate.
Steps of company incorporation in Malaysia
Step 1: Contact a consultancy company who can guide you A-Z services from incorporate in Malaysia to tax, audit, accounts and licensing.
Step 2: Allow a company secretary to complete incorporation process.
Step 3: You might recommend to show paid up capital RM 2000-4000 initially and once bank account is opened deposit in account. Director can increase capital as much as need, later on.
Step 4: Take SSM copies certified by COSEC (Company Secretary) to submit in bank.
Step 5: OCBC, UOB, HSBC and SCB are recommended banks for foreign entrepreneurs.
Step 6: You may apply for SIGN BOARD and Premise license if the business location is not inside of commercial building.
Step 7: As the nature of businesses, require business licenses can apply for example export import, WRT and so on.
Step 8: Director can apply for work permit after company incorporation in Malaysia along with some require documents.
Step 9: There is yearly cost to renew licenses, annual return submission, income tax filing, financial statement and audit purpose. There are compulsory either do business or dormant company.
Step 10: Entrepreneurs might plan to apply for MM2H visa for 10 years residence permit.
GST is 6 percent is known for all but some other taxation is there additionally as like corporate tax 15 percent. Offshore account holders are not tax exempted as 3-6 percent taxation is applied. So, company incorporation in Malaysia is all about it in a summary. Work permit application procedure and approval steps are more complicated and time consume.
Limited company incorporation is called Sdn Bhd company in Malay language so be no misunderstanding thereof. One shareholder, who will be appointed by law as director of the company, is required to incorporate Sdn Bhd company. And, there is maximum 50 shareholders can purchase any Sdn Bhd company. To open bank account director must be present in Malaysia but incorporation of a company physical present is not necessary.
Cost of company incorporation
Expected cost of company incorporation is RM 3500 inclusive
- Fee of company incorporation
- COSEC appointment and service for 12 months
- Bank account cooperation
- Business address
You might be offer fee RM 1200-2000 but following services might not ensure that will be charged later on time to time. For example invisible charge: Certify a copy from COSEC, business address, miscellaneous, bank account open and so on. Some other business licensing cost are there:
- Signboard -RM 1500
- Export Import- RM 3000
- WRT- RM 3000
- Liquor- RM 4000-5000
Once local staff is hired must pay EPF and SOCSO as law as post company incorporation step. There are basic salary, EPF and SOCSO contribution and others must pay to staff with salary.