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Q：
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What are the available options for foreign investors to set up business in Malaysia?
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A：
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Foreign investors in Malaysia have different choices when starting a business, depending on their goals, type of business, how the company is owned, and their risk appetite. The choices include setting up a private limited company, opening a branch office, starting a representative office, or forming a limited liability partnership.
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Q：
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What business structure is the most prevalent for foreign investors?
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A：
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The private limited company is the preferred form of business entity for foreign investors in Malaysia. This structure allows 100% foreign ownership in most industries and offers protection for the owners' personal assets.
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Q：
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What is the minimum paid-up capital requirement for a foreign-owned company in Malaysia?
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A：
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The minimum capital requirement for a foreign-owned company in Malaysia varies based on the nature of its business and any applicable regulatory or licensing requirements. While the minimum for registration is RM1.00, foreign-owned businesses should anticipate a paid-up capital of at least RM500,000 if they plan to hire expatriates.
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Q：
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Is local director required for foreign-owned company in Malaysia?
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A：
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Yes, Malaysian law mandates that a private limited company have a minimum of one locally resident director. For a Branch Office, it must have a local agent who is ordinarily resident in Malaysia. For a limited liability partnership, the appointment of a local compliance officer is mandatory. As for a representative office, while it cannot engage in commercial activities, it is advisable to employ local staff, especially if the office intends to hire expatriates.
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Q：
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Do foreign companies need to pay taxes in Malaysia?
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A：
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Yes, if a foreign entity is conducting business and generating income in Malaysia, it is subject to the corporate tax rate of 24%. However, if the entity operates as a representative office, it is not taxable, as it is not permitted to engage in commercial activities or generate income.
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FAQ
