Asia business
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Malaysia has a population of about 32 million (Malay is 68.8, Chinese is 23.2%, Indian is 7.0% and 1.0% is other ethnic groups. The country is multi-ethnic and multi-cultural, which has a significant effect on its politics. The country's official language is Malaysian (Bahasa Melayu), a standard form of the Malay language and English remains an active second language. The capital is Putrajaya. Kuala Lumpur is the largest city and most densely populated and is also the political and economic center of Malaysia.
Malaysia's top five industries are manufacturing (electrical and electronic, chemical), agricultural, mining (natural resources). The total exports are US$239.8 billion in 2017 with major export electronics and electrical, chemical products, petroleum, liquefied natural gas, machinery and spare parts, metal products, optical and scientific instruments and rubber products. Major exporters are China, Hong Kong, Singapore, Korea, Japan, Indonesia, Thailand, India, the United States and Australia. Malaysia is a founding member of ASEAN, EAS, OIC and a member of APEC, the Commonwealth and the Non-Aligned Movement.
- Required at least 1 local director; Must appoint licensed company secretarial and auditor;
- Name check and reservation for 30 days; the following documents must be submitted to The Companies Commission of Malaysia (SSM):
- Certified copy of Certificate of Incorporation
- A certified copy of Memorandum and Articles of Association
- Certified copies of the Register of Directors and Register of Members
- Passport and address proof of the local director
- A certificate of appointment or power of attorney
- Affidavit
- Open corporate bank account;
- Register for Sales and Services Tax (SST) and income tax;
- Register with the Employees Provident Fund (EPF) and social security (SOCSO) within seven days an employee is hired;
- Under the 2017 amendment law, it is necessary to submit an Annual Return every year and submit the financial statements within 7 months after the end of the fiscal year.
The corporate income tax rate is 24%. For SME with registered capital less than 2.5 million ringgits, a preferential tax rate of 17% is applicable to the first 500,000 ringgits of net profit; high-tech industries have a 5-year tax exemption period;
The personal income tax is 1%-28%, and the personal income tax is only taxable on domestic income (exemption for foreign income remittance). Residing for more than 182 days is considered a tax resident.
- EPF rate: 12%-13% of monthly salary.
- SOCSO rate: based on the employee’s monthly wage, restricted to a maximum of MYR69.05 for employer.
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