Why you should Incorporate Your Business in Malaysia

Are you planning to startup a new business or expand your current business internationally and wondering the destination. Malaysia might be your best destination considering the numerous benefits you will gain. Over the last decade, Malaysia has emerged as one of the most desirable destination for business setups and expansion. Out of the 157 countries across the world, Malaysia has been ranked as 55^th easiest place for business.

In additional to the efforts the government of Malaysia is putting to make the country a better place for business, its geographical factors also makes it more attractable for business expansion. Being located in Asia Pacific Rim makes it easily accessible due to numerous countries sounding it. A business in Malaysia can easily access more than 600 million people thus improving your success. This blog will provide you with the reasons why you should consider expanding your business to Malaysia.

Low-Cost of Incorporation

When compared to other countries, Malaysia is one of the easiest places for business incorporation. Over the past few years, Malaysia has been putting efforts to enhance polices and procedural improvements. This has increased efficiency and minimized the time you have to wait for registration and permit application. The process even becomes easy when working with incorporation services in Malaysia. For instance, Boardroom is one of the most trusted incorporation service providers in Malaysia helping businesses register within less than 10 days.

The country’s new company act of 2016 makes registration process easier and cost effective.  Apart from registration process other changes that make incorporation cost low and easier include;

• Possibility to incorporate a company with one director and one shareholder
• You don’t need to have annual general meetings if you run a private company
• Dormant companies and zero-revenue companies are exempted from audit
• Easier passing of written resolution for private businesses

Stability

For a long time, Malaysia has been stable economically and politically making it the best destination for business. While business is all about risk taking, no company would want to risk investing in a country with political or economic instability because this could mean a big fall down. A wise business owner assesses the risks and the benefits before investing in any project and only invests in that which risks are low and benefits are high. Malaysia’s strong legal system provides certainty and predictability for businesses. Its economy is also one of the fastest growing economies in the globe with a GDP growth rate of 6% in 2017. This means that Malaysia is an appealing location for any business planning to grow internationally whether by establishing a new business or expanding an already existing business.

Cultural Diversity

With a population of over 30 million, Malaysia is a culturally diverse country. The nation holds many diverse ethnic groups like Indians, Chinese, Malay, and indigenous people. This means that if you set up your business in Malaysia, the possibility of its success is higher since there is a large pool of potential clients and employees.

The locals are educated and multilingual with most of them being proficient in English, mandarin and Tamil languages. This enables a business to communicate with potential customers with ease and reach more international clients. You will also be able to access and hire cheap and educated labor. Most of Malaysian’s are highly educated because the government supports human resource development in all sectors. Establishing a business in Malaysia means you can succeed easily due to the ability to access people from diverse cultures who also educated and skilled.

Investment Friendly Setting

Malaysia has an investment agreement with more than 60 countries. This makes the country a safe place for business since there are crucial protections that encourage further investment. These agreements protect businesses against nationalism and expropriation, safeguarding assets from being unfairly taken. Although in rare cases, the agreements ensures that the victims receive timely and fair compensation if this happens. This reduces the risk of foreign investment and attracts more investors. There are also the policies that were introduced under Madani economy framework and they increase investor’s confidence.

Avoid Double Taxation

In most countries, if you are expanding your business internationally, you will probably pay double taxes. The case is different for businesses incorporating in Malaysia. As one of the many international relation agreements, Malaysia signed a contract protecting investors from double taxation. This means that the country has a tax friendly environment for international traders. The agreements outline how profit and income earned outside Malaysia by locals and within by foreigners will be treated. On this note, companies operating in Malaysia are protected from paying double taxes on singular income.

Solid Infrastructure

The country’s developed in fracture makes Malaysia company setup easier and quick. A business can easily set up and be able to reach a wide range of customers in different places due to the country’s excellent transportation network including, airports, seaports and well-connected road systems. The smooth transportation system also makes it easier to import items without much struggle. Companies can ship products and offer services nationally and internationally with ease. Malaysia has geographical landscape that supports a variety of business. It also features well-developed telecommunication infrastructure capable of accommodating both domestic and international communication services.

Sustainability and Green Initiatives

In today’s world, countries are striving for environmental sustainability. Malaysia has been on the top in commitment to sustainability of green initiatives. The country’s government has introduced incentives and polices that enhance environmentally friendly practices, green technologies, and renewable energy. For businesses which thrive to achieve a sustainable future by contributing to a greener environment, Malaysian offers a conducive environment and opportunities to align with their values. In conclusion, Malaysia is among the top nations in the world with best business environment. The country makes incorporation easier by offering low-incorporation taxes and making the process faster. Malaysia’s well-developed transportation and communication infrastructure makes it to attract many business persons with the goals of expanding faster. Their culture is also diverse and this means you can access different customers and employees from different cultures and with different knowledge. The country is stable economically and politically and also protects investors from double taxation allowing them to make better profits in a safe place. Considering all the above reasons, I don’t see a reason why a business owner planning to expand internationally should not consider Malaysian as their destination.