Saving tax and protecting assets turns out to be the major concern of any business investor who plans to start or expand their business in global destinations.
Today, the concept of globalization has been widely accepted by business investors and entrepreneurs that allows them to get rid of the unwanted tax burden.
Popular offshore destinations have been established across the world to grab the attention of investors, and Malaysia stands as one of the most profitable and comforting zones when it comes to offshore company setup.
This guide highlights the core details that are required to set up an offshore company in Malaysia. Let’s have a look!
Offshore Investment Malaysia
Ranked as 24th in the Ease of Doing Business list, the country of Malaysia turns out to be a lucrative business investment option.
An offshore company is one of the advancing business jurisdictions that has been catching the eye of business investors worldwide.
Beginning an offshore company in Malaysia is a viable choice, and this guide will assist you with understanding the individual offshore company setup process smoothly.
Kuala Lumpur, the capital, is a celebrated traveller objective and one of the quickest creating economies of the world.
Nonetheless, prior to continuing towards the cycle, how about we start by understanding the idea of offshore.
Advantages of Malaysian Offshore Company
Opening an offshore company in Malaysia brings numerous benefits to the business investors which includes:
1.No Local Partners Required
When it comes to offshore company incorporation in Malaysia, no local partners are required. The Government of Malaysia has made it entirely foreign-owned, with a minimum presence of one director and one shareholder.
2. Low-Cost Company Setup
The company setup cost is ideally reasonable as compared to the other offshore jurisdictions and thus, it provokes the business owners to kick-start their business unit at ease. Here are the pricing details that you can check to get a complete idea of the same.
3.Low Corporate Tax
In Malaysia, the corporate tax is as low as 3%, which permits the business proprietors to get help over the high corporate tax instalment.
Also, there are several tax advantages associated with starting an offshore business, and to get complete knowledge on the same, have a look at our latest guide on Tax Advantages of Starting an Offshore Business.
The ground of Malaysia has over 60 Double Tax Treaty Agreement which permits the business experts to get alleviation of twofold taxation that happens during the import-send-out cycle.
What is the Process of Registering an Offshore Business in Malaysia?
Setting up an offshore company in Malaysia involves the following steps:
1.Draft a Business Plan
Independent of the nature and size of your business, arranging is one of the urgent advances that each business proprietor needs to go through. Economic situations and essential viewpoints like financial arranging, break-even analysis, SWOT examination are to be thought of while building the arrangement. Upon finalizing the project, one gets clarity regarding the route and the steps to be followed.
2. Take a Look at Your Finances
Finance is one of the essential aspects that drive an organization to carry out relevant activities. Understand the scenarios were to fetch in more funds for your organization.
Also, you need to build the respective marketing budget that will help you to get more footfalls. Follow the guide to open an offshore bank account in Malaysia.
3.Decide a Business Structure
A business organization can be formed in multiple ways as there are different business structures that one can choose from. Each system differs based on the grounds of the number of shareholders, capital invested, location etc
If you are a local entrepreneur, you can proceed ahead as a Sole Proprietorship, or Limited Liability Partnership (LLP), or General Partnership. In case, if you are a foreign entrepreneur, you can proceed ahead with a locally incorporated company or foreign-owned company
You need to have a clear idea regarding the business entities and then choose one accordingly that suits your business needs.
4.Select a Company Name
Every business needs a name for its recognition. In the next step, you need to choose a unique name for your organization.
You need to select a name by analyzing various aspects as tomorrow it’s going to hold the company’s brand identity. I
In Malaysia, you need to complete a request for the availability of the name form and submit the same to Suruhanjaya Syarikat Malaysia (SMM), and pay the respective fee for each name applied.
After the completion of the name check, you need to register with SMM to get the respective approvals for company formation in Malaysia.
5.Obtain a Specific Location
Setting up a business where your target audience doesn’t exist will end up in losses. You need to make sure that the business entity is set up in a specific location that will help you to grab your target audience.
Location plays a significant role in the growth of a business entity, and you need to make sure that you choose the right place accordingly.
6.Get Handy with the Required Documents
Clear and approved documents are the gateway to business incorporation. You need to make sure that you hold the right set of documents while heading towards the registrar office. The set includes:
- Certified copy of passport
- Certified copy of proof of address (utility bill like landline bill, electricity bill, water bill etc.)
- Bank Reference Letter
- Professional Reference Letter
- Curriculum Vitae
7. Pay the Registration Fees
Once the documents mentioned above gets submitted, you need to proceed ahead with the registration part by paying the relevant fee.
8. Grab the Incorporation Certificate
After the fee payment and completion of the document verification process, you will be issued the company incorporation certificate that will act as a legal permit to carry out the business operations.
9. Avail Professional Service
The business incorporation process involves multiple stages of legal proceedings, and the best way to deal with them is to proceed ahead by availing the professional services. Ranging from business incorporation to set up core services like accounting, auditing, digital marketing, an expert can help you to deal with several grounds
Establishing an offshore company in Malaysia is a beneficial move that you can take to secure your wealth and assets for your future generation.
At the same time, the tax-havens can help you to expand a business internationally and reap humongous benefits.
To take the steps effectively, it is recommended to undergo an expert’s guidance.
Business Setup Worldwide is one of the top business consulting firms that are dedicated to providing the best business setup services across the globe. We have helped numerous clients to incorporate their business roots in different parts of the world at an affordable price. Our business experts are well-versed with the relevant procedures and are known to provide tailored solutions suiting the business requirements. In case you hold any query, do speak to our experts. Contact us today-we’d be glad to assist.