Malaysia has always had the benefit of a strategic location on its side when it comes to doing business in the international front. Strategically positioned right in the trading path in the middle of the Eastern and Western world, Malaysia is known as one of the important shipping routes in the world.
Doing business in Malaysia has also been of keen interest to many an investor because of the rich natural resources that the country has to offer. Malaysia for example, is the largest producers and exporters of tin, rubber and palm oil, all of which are lucrative trades that have bolstered the country’s economic status.
Malaysia is ranked as the 23rd in the world for the ease of doing business by the World Bank Group, although it is continually recognised for its business-friendly policy and competitive economy. Malaysia’s excellent infrastructure, transport connectivity, well-developed financial sector make it a very cost-effective gateway into doing business in Malaysia and the Asian markets that surround the country as well.
Doing Business in Malaysia – How to Set Up Your Own Company
Establishing a company for the purpose of doing business in Malaysia can be accomplished with the following steps:
- Reserve a name for your company with the Companies Commission of Malaysia, known locally as the SSM. The SSM is the Suruhanjaya Syarikat Malaysia, which is the local Malay name equivalent of the Companies Commission of Malaysia.
- The company secretary would need to prepare the required documents for incorporation and provide a statutory declaration of compliance, in accordance with the Companies Act 1965.
- The required documents would need to be filed with the Companies Commission of Malaysia to obtain the incorporation and post-incorporation package which include the company seal, share certificates and statutory books.
- Opening a bank account for the business can be done at any of the local banks.
- Registration for the goods and services tax needs to be done at the Royal Malaysian Customs.
- Registration for the income tax needs to be done at the Inland Revenue Board of Malaysia, known locally as the LHDN.
- Employees would need to be registered for the Employees Provident Fund.
- Employers would also need to be registered for social security at the Social Security Organisation, known locally as SOCSO-PERKESO.
Entering into the local market when it comes to doing business in Malaysia is best done by working with a local business counterpart if you have one. A local business counterpart would best understand the needs and inner workings of the market, and they would know how to handle matters related to customs clearance, wholesalers, retailers and more.
The safest way to establish a company to do business in Malaysia would be to enlist the help of a professional services agency to handle the paperwork and navigate the bureaucracy with minimal hassle.
