Investment Guidance for Malaysia

Investment Guidance for Malaysia & China Markets

This post will be Your Gateway to Malaysia. Malaysia has emerged as one of the most dynamic and investment-friendly countries in Southeast Asia. With its strategic geographic location, robust infrastructure, and multilingual workforce, it serves as an ideal base for Chinese and global investors looking to expand their business in ASEAN markets.

1. Overview of the Malaysian Market

Malaysia enjoys a stable political environment and a diversified economy covering manufacturing, services, technology, and natural resources. Its membership in regional trade frameworks—such as ASEAN and the RCEP—provides investors with access to a large consumer market and preferential trade arrangements.

Foreign investors are allowed to establish 100% foreign-owned companies in most industries, particularly in manufacturing and export-oriented sectors. The government actively supports foreign investment through incentives, tax benefits, and simplified registration procedures.

2. Company Formation Requirements

To set up a company in Malaysia, investors generally need to:

• Choose a business structure (most commonly a Private Limited Company – Sdn. Bhd.).
• Appoint at least one local director and one company secretary.
• Provide a registered local business address.
• Prepare a minimum paid-up capital (no strict minimum, though RM1,000–RM100,000 is common for operational needs).
• Register with the Companies Commission of Malaysia (SSM).
• The process usually takes 5–10 working days once all documents are ready.

3. Ongoing Compliance and Taxation

Once incorporated, companies must comply with annual obligations:

• Annual Return & Financial Statements filed with SSM.
• Corporate Income Tax at 24% (for resident companies; small and medium companies enjoy lower progressive rates).
• GST/VAT (SST) registration if annual turnover exceeds RM500,000.
• Payroll taxes, EPF & SOCSO contributions for employees.
• To maintain good standing, companies should ensure timely bookkeeping, annual audits, and tax filings.

4. Why Tannet?

Tannet Group provides one-stop investment and corporate solutions across Asia. Our Malaysia and China teams assist clients from company setup and licensing to tax planning, accounting, and ongoing compliance—ensuring every step of your cross-border expansion is efficient, compliant, and sustainable. For inquiries, please contact us at +86-755-82143512 or email anitayao@citilinkia.com. Visit our website at https://tannet-group.net/.