|
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)Conduct types of business as listed in here 2)May trade with Malaysian residents or non-residents. 3)May trade in any currency. 4)Tax: 0% for investment holding income and 3% for trading income (provided that economic substance regulation is complied) |
|
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 |
Varies with year of assessment and company’s paid up capital |
NA |
26% of branch profit |
3% of audited net profits for trading activity and zero percent for non-trading activity (provided that the tax substantial activity requirements is complied) |
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 |