Malaysia10 Reasons to Setup Company in Malaysia
  • To setup company in Malaysia offers numerous benefits beyond the country’s healthy business environment and fast-growing economy in Southeast Asia. Known for its diverse cultural landscape and strategic location, Malaysia provides an ideal platform for businesses aiming for global expansion. The country boasts a thriving economy with increasing GDP, making it one of the top economic hubs in the region. Foreign investors can take advantage of abundant business opportunities and enjoy Malaysia’s welcoming atmosphere when they register company in Malaysia. 

Benefits to setup company in Malaysia 

Ease of business registration 

  • The Companies Act 2016 has streamlined and reduced the cost of registering a company in Malaysia. This act offers several advantages for businesses, such as allowing a company to be formed with just one shareholder and one director. Companies meeting specific criteria, such as having minimal activity or no revenue, can be exempt from audits.  
  • Furthermore, private companies are not required to hold annual general meetings and can easily pass written resolutions. 
  • To make business registration smoother, Tetra Consultants can guide you through the process of offshore company incorporation, ensuring a hassle-free experience as you set up your business in Malaysia. 

Low taxes for corporation 

  • Malaysia’s corporate tax rate is competitive, offering one of the lowest rates in Asia for resident companies. Resident companies enjoy a corporate tax rate of 17% under specific conditions: the company must have paid-up capital under RM 2.5 million and an income of RM 50 million or less.  
  • For resident companies, income beyond the initial RM 600,000 is taxed at 24%. Companies within Malaysia are taxed at 24%, while those outside the country are exempt. 
  • Tetra Consultants will provide you with accounting and tax obligation services, ensuring seamless compliance with Malaysia’s corporate tax requirements and smooth navigation of tax obligations. 

Trained and inexpensive labour 

  • The Malaysian government prioritizes the development of human resources across all sectors, resulting in a large pool of highly educated workers in Malaysia. This makes the country an ideal place for outsourcing work, as the workforce is not only skilled but also benefits from a lower cost of living and working compared to other Asian nations. 
  • Recognizing the importance of education and vocational training, the Malaysian government has recently established more public training institutions such as technical schools, polytechnics, industrial training institutes, and skill development centers. These initiatives aim to meet the growing demand for a well-qualified workforce. 

No language barrier 

  • When you set up a company in Malaysia, you will find a diverse and multilingual workforce. The official language is Bahasa Malaysia (Malay), but English, Mandarin, and Tamil are also widely spoken. Many Malaysians, especially the younger generation, are fluent in multiple languages, which can be beneficial for businesses looking to connect with local markets and international clients. This linguistic diversity offers a competitive edge for companies operating in Malaysia. 

Strategic location 

  • When you choose to set up a company in Malaysia, you benefit from its strategic location in the Asia Pacific region as a member of ASEAN. This positions Malaysia at the gateway to a market of over 667 million people across neighboring countries such as Indonesia, Singapore, Thailand, and Vietnam. With an extensive network of seaports like Port Klang, Johor Port, and Penang Port, Malaysia offers excellent connectivity for businesses reliant on sea route trading. This accessibility makes it an ideal hub for international trade and commerce, enhancing your business opportunities in the region. 

Ease of doing business 

  • In order to set up company in Malaysia, it is crucial to recognize the country’s strong standing in global rankings. Malaysia was ranked 12th in the World Bank’s 2020 Ease of Doing Business report, indicating its commitment to simplifying the process for both residents and foreign investors. The Heritage Foundation’s Index of Economic Freedom places Malaysia as the 24th freest economy worldwide, emphasizing its open-market policies.  
  • Moreover, the World Economic Forum’s 2019 Global Competitiveness Report ranks Malaysia 27th globally for its competitive economy. Notably, Malaysia excels in protecting minority shareholders, being ranked second-best globally in this regard, making it an attractive destination for business establishment. 

New companies act 

  • The Companies Act 2016 in Malaysia simplifies and reduces the cost of registering a company. The new law streamlines the registration process and introduces additional beneficial changes for businesses. These include: 
  • Companies can now be incorporated with just one shareholder and one director. 
  • Dormant, zero-revenue, and certain qualified companies may be exempt from audits. 
  • Private companies are no longer required to hold annual general meetings. 
  • Written resolutions can be passed more easily by private companies. 
  • These changes provide greater flexibility and efficiency for businesses operating in Malaysia. 

Free trade agreements 

  • Malaysia has engaged in numerous free trade agreements to enhance its economic connections globally. It maintains seven bilateral and seven regional free trade agreements, including pacts with Japan, Pakistan, New Zealand, India, Chile, Australia, and Turkey. Additionally, Malaysia participates in the ASEAN Free Trade Agreement (AFTA), promoting economic integration among Southeast Asian nations. 
  • These agreements offer significant advantages such as reduced or eliminated tariffs on imports and exports, the removal or modification of import restrictions, and streamlined customs procedures. They also facilitate easier access for investors and improve market access for various services, fostering a more business-friendly environment in Malaysia. 

Proactive government 

  • The Malaysian government is proactive in supporting a diverse range of businesses and is actively working to attract foreign investors to start ventures in the country. By providing incentives and implementing business-friendly policies, the government aims to elevate local organizations to world-class standards.  
  • This influx of foreign investment has significantly boosted Malaysia’s economy, transformed the business landscape and enhanced the nation’s overall environment for growth and development. Malaysia’s commitment to fostering a dynamic and inclusive business ecosystem is key to its economic success. 

Improving infrastructure 

  • In recent decades, Malaysia has achieved remarkable economic progress, largely due to significant investments in infrastructure. The Malaysian government has prioritized modernizing the country’s transportation, communication, and utilities networks, ensuring seamless business operations and enhancing overall efficiency.  
  • These improvements have made Malaysia a top choice for setting up a company, as they provide a strong foundation for sustained growth and success in various industries. The continuous advancement of infrastructure further supports Malaysia’s status as one of Asia’s most developed nations. 


  • To setup company in Malaysia offers numerous advantages, including a stable economy, strategic location, educated workforce, and supportive government policies. Tetra Consultants can guide you through every step of the process, ensuring a seamless experience from company registration to ongoing compliance.  
  • By choosing Tetra Consultants, you will benefit from expert knowledge and resources tailored to help your business thrive in Malaysia’s dynamic market. Partner with us to capitalize on Malaysia’s favourable business environment and take your venture to new heights. 
  • Contact us to know more about setup company in Malaysia and our team will revert back in 24 hours. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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