Strategically located at the crossroads of Southeast Asia, Malaysia is an ideal gateway to the ASEAN markets. As a country that welcomes foreign investors, the country offers many business opportunities with links to other ASEAN markets.

Doing business in Malaysia

With its booming economy, Malaysia has become one of the preferred investment locations in Southeast Asia. As the business center of Southeast Asia, the country attracts investors from all over the globe. The vast and well-developed transportation network makes Malaysia seen as a convenient place to do business, especially for those in the manufacturing, service or export industries. However, it is not easy for expatriates to do business in Malaysia, so you will need the help of this comprehensive guide.

Step 1: Find Out What Businesses Expats Can Engage In

The first step is to understand the type of business a foreign investor can engage in. As in many jurisdictions, there are several different types of business entities in Malaysia and the type of business entity you choose will affect compliance requirements, tax structure, and more. In Malaysia, foreign investors can choose to set up a local company or a foreign company, but they cannot set up a sole proprietorship or partnership unless they have permanent residency (PR) in Malaysia.

Generally speaking, a private limited company, a branch office and a representative office are the three most common types of business entities chosen by expatriates in Malaysia.

Step 2: Incorporation

Like many jurisdictions, Malaysia has its own company registration process and the Companies Commission of Malaysia (SSM) is the government agency responsible for handling company registration matters.

Below is a snapshot of the company registration process in Malaysia:

1. Naming your company
2. Search for company name before registration
3. Submit registration documents to SSM within 3 months of approval of company name (you can find the required registration documents here you can find the required registration documents here)
4. Pay the registration fee for the business entity of your choice, including the office/shop security deposit and the first deposit in the bank account
5. Apply for a business license, such as a Wholesale and Retail Trade (WRT) license
6. Open a company bank account