Incorporation in Malaysia
MALAYSIA COMPANY
AUTHORIZED CAPITAL
The minimum authorized capital for private limited liability (i.e. Sendirian Berhad) Malaysian company is RM100,000.00 with a corresponding stamp duty and filing fees of RM1,200.00. The higher the authorized capital, the higher the filing fees.
PAID UP CAPITAL
The minimum paid-up capital is RM2.00, with minimum of 2 subscribers subscribing to one share of par value of RM1.00 each. For expatriates, we recommend 3 subscribers to avoid potential problems for lack of quorum to hold Meetings of the company.
SHAREHOLDERS
As above, a minimum of 2 shareholders is required, subscribing to one share of par value RM1.00 each. The recommendation is to have 3 shareholders for the same reason as above.
DIRECTORS
A minimum of 2 directors needs to be appointed at all times and of which two must be a residents in Malaysia. Directors must be above 21 years old and have not been previously disqualified from acting as a director. The recommendation is to have 3 directors for the same reason as above.
APPOINTMENT OF COMPANY SECRETARY
A Licensed Company Secretary has to be appointed within 1 month from the date of incorporation of the company.
APPOINTMENT OF AUDITOR
A Malaysian approved auditor has to be appointed within 3 months from the date of incorporation of the company.
ANNUAL AUDIT
Company accounts must be audited annually in accordance with the approved accounting standards in Malaysia and the Companies Act, 1965. Therefore, proper accounts must be kept.
INFORMATION ON PUBLIC FILE
Company information is filed with the Registrar of Companies Malaysia that is available to the members of the public for a prescribed fee by ROC.
CORPORATE TAX
Corporate tax in Malaysia stands at 28%. For companies whose paid-up capital is less than RM2,500,000, the rate is 20% for the first RM500,000 of chargeable income.
Tax in Malaysia is territorial based i.e. foreign income earned but not remitted back to Malaysia is not taxable.