Unless Done Properly, You Malaysian Business Registration Might Just Be An Application
If you’ve got a dream, future plans of, what could be, when it comes to setting up a new business, or the expansion of your already established organisation, then you may have considered Malaysia. If you have, then you’re certainly on the right path to somewhere, as long as your registration is done properly. For those that hadn’t considered Malaysia as an option, here’s a few reasons why the other readers are already half way onboard;
Go Malaysia
Malaysia has a lot to offer for either new start-ups, or those who want to expand into new territories, they certainly make it easier than some of the neighbouring countries. You might find that it’s the smartest move you’ve made for some time. You can take advantage of;
Comparably low corporate tax rates*
Clearly this will depend upon where you currently operate your business from and how it has been set up, although in general, when compared to some other countries, successful business registration in Malaysia tends to offer low corporation tax fees in comparison.
A quick breakdown looks something like this*
If the company meets the requirements below, they can achieve a corporation tax rate of just 17%;
- Must have paid up to a total of RM.2.5 million capitals, or a total income that equates to no more than RM 50 million. Obviously, this will all depend on the speed of your company’s growth and its ability to generate income.
- Your company cannot own or have any control of, or be controlled by, a sister company that earns more than the RM 2.5 million capital cap.
- When your company earns more than RM 600,000, then you can expect to pay a rate of 24%, this one all depends upon how much you really want to make.
- Any other companies that don’t fall within the brackets of point No.1 are subject to a rate of 24%
Do bear in mind that these points are just the basics to get you started, although, as with any government run incentives, things can change overnight. Also, if you don’t make all the necessary applications in the right way, you might get nothing, so unless you’re an expert of the trade, get yourself an accountant, or two to manage it all for you.
Skilled labour at a lower cost
Malaysia invests a great deal into its people and their education, as a result, you can be sure to have a greater choice of highly educated services, and staff to choose from. In addition, you should find that job applicants for any job positions that you advertise for, are of a higher calibre when compared to surrounding countries. That does depend, however, on the job role, and the salary bracket you are aiming your advert towards.
The not so new, new companies act
- If you’re business is in a dormant state, i.e., it isn’t generating any kind of revenue, then they shouldn’t be subject to audits
- A company can be set up using just one director and one shareholder
- Resolutions, and applications should be ‘passed’ easier, making your life a little simpler
Back in 2016, Malaysia introduced a ‘New Companies Act’ which is aimed to encourage, and maintain continued economic growth, you could benefit from the above, although, you’ll want to check with a pro first.
