| Resident LLC | Non Resident LLC | Free Zone LLC | Bumiputera company | LLP | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|---|
| Other Entity Name | Resident Limited Liability Company | Non Resident Limited Liability Company | EPZ Company | Joint venture with Malaysian national | Limited Liability Partnership | Branch | Representative Office |
| Company Setup Time | 15 days | 10 days | 15 days | 10 days | 20 days | 20 days | 20 days |
| Bank Account Opening | 10 days | 10 days | 10 days | 10 days | 10 days | 10 days | 10 days |
| Government Grants Available | Yes | No | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | Yes | No | No |
| Limited Liability | Yes | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Malaysian Limited Liability Company (SDN BHD)
- It is required a share capital of USD 2 (MYR2) and one director, two shareholders, one resident company secretary. The director’s nationality is not restricted, but must reside in the country. Malaysian companies must submit audited accounts every year.
Malaysia Free Zone Company (EPZ Zompany)
- This is suitable for foreigners who are looking to set up export-oriented manufacturing and service businesses. Although there is no formal minimum paid-up capital requirement, it is recommended to invest a minimum of USD 125,000. A free zone company is an appealing vehicle for the production of re-exported foreign products.
Malaysia International Trading Company (Labuan Company)
- The Corporate tax is 3% for trading firms engaged in operations such as insurance, banking, management, trading, licensing, import, export, wholesale, trading, agency, consulting and advisory services. A company audit is required.
- The Corporate tax is 0% for non-trading companies, investment holding companies with assets such as stocks, shares, securities, loans, deposits and immovable properties in Malaysia or outside Malaysia,
Bumiputera Company
- Business investors seeking to create a limited liability business in the country can apply for Bumiputera status provided 30% of the shares of the business are held by native Malay individuals or by any other Bumiputera corporation. In the event this requirement is met, the firm becomes qualified for special incentives such as special bank agreements, cheaper business licenses, native land reservation, and discounts when purchasing or renting land
Malaysia Limited Liability Partnership
- A limited liability partnership can be established with at least two partners, both foreign and non-resident. It also requires a resident compliance officer.
- There is no minimum share capital to form this entity, all partners benefit from limited liability.
- A limited liability partnership can sign contracts and issue invoices with its names.
- This entity is tax-transparent, partners are required in their personal income tax statements to declare the income channeled through the partnership.
- A limited liability partnership is a good option to conduct projects in cooperation with a Malaysian or foreign company. Partners can be individuals, but they can also be corporate partners.
Malaysia Branch Office
- All branch offices must operate within the parent company’s scope. It can engage in business activities involving invoicing, trade, and contract signing. Foreign companies are required to appoint two local resident representatives.
- A branch requires appointing an agent residing in Malaysia. There is no minimum share capital requirement.
- It is required to file audited business accounts and to file an annual balance sheet, file an annual return, and keep records in the country for at least seven years
- It is only permitted to engage in market research activities and to promote the parent company’s business. A representative office in Malaysia can not sign contracts or do business. This entity is recommended if its planed to conduct marketing operations and no productive or trading operations.