General | Sdn Bhd Co. | Representative Office/Regional Office | Branch of foreign Co. | Labuan Company | |
---|---|---|---|---|---|
Who can use? | Local and foreign | By foreign corporation only | By foreign corporation only | Local and foreign | |
What business can be conducted? | Can be used to in the local business in Malaysia, for example consulting, manufacturing, restaurant, travel agency, telecommunication, etc. Can be 100% foreign owned subsidiary. | Not allowed to conduct business in Malaysia. Only suitable for foreign company intending to study Malaysian market before actually investing in full, to co-ordinate business activities, to identify source of raw material, etc. | Can do most type of local business through the branch. | 1)Business with non-resident of Malaysia only. 2)No business dealing in Malaysian currency. 3)Tax: 0% for investment holding income. 3% or RM20k for trading income. | |
Entity | Private limited company | Non-entity | Branch | Private limited company | |
1 | What is the Registering Body? | Company Commission of Malaysia | Ministry of International Trade & Industry | Company Commission of Malaysia | Labuan FSA |
2 | Who do I see to register? | Company secretary | Can register on your own or appoint consultant | Company secretary | Trust company in Labuan |
3 | How long does it take to register? | 1 day | A few weeks | 2-3 days | 1 day |
How long is duration? | No limit | Usually approval is given for 2 years only | No limit | No limit | |
4 | What is the minimum number of director? | Min 2 | N/A | N/A but may appoint local director | Min 1 |
5 | What is the minimum number of shareholder? | Min 2 | N/A | N/A | Min 1 |
6 | Local shareholder? | No required unless when doing business with government or government controlled companies | N/A | N/A | No |
7 | Local director? | No, but if all directors are foreign, must have local addresses in Malaysia | N/A | May appoint local branch director | No |
8 | Can I do business with Malaysian residents? | Yes | NO | Yes | NO |
9 | Size of paid up capital required? | No unless applying for employment pass, in which case min is MYR500k | N/A but to qualify to apply, foreign co MUST have at least MYR2m annual turn over | N/A | No unless applying for employment pass, in which case min is MYR250k |
10 | Is physical office required? | Yes | Yes | Yes | NO |
11 | Employment of local | Not required | Not required | Not required | Not necessary |
12 | Opening of FX a/c | Yes | Yes, expenses only | Yes | Yes |
13 | Opening of RM a/c | Yes | Yes, expenses only | Yes | Yes |
14 | Buy or acquire lease of property in Malaysia? | Yes | No | Yes | Yes, but only for own use |
Taxation, accounting & audit | |||||
15 | Who is the Tax Authority? | Inland Revenue Board of Malaysia | Not subject to tax | Inland Revenue Board of Malaysia | Inland Revenue Board of Malaysia |
16 | Corporate tax rate | 26% | NA | 26% of branch profit | 3% or MYR20k |
17 | Taxation basis | Current year basis | N/A | Current year | Preceding year basis |
18 | Accounting and audit | Mandatory | N/A | Mandatory | Mandatory |
Costs | |||||
19 | Professional fee 1st year | MYR3500-MYR7000 | MYR5000 min | MYR5000 min | USD3500 |
20 | Annual maintenance | MYR2000 excluding accounting, audit and tax compliance | N/A | MYR2000 excluding accounting, audit and tax compliance | Min USD1850 excluding accounting, audit and tax compliance |