Why Foreigners Should Incorporate in Malaysia

Why Foreigners Should Incorporate in Malaysia

Incorporating a business in Malaysia offers a variety of benefits to foreign entrepreneurs. Malaysia offers entrepreneurs access to a large and growing market, a favorable tax environment, and a robust business infrastructure. These factors, combined with the country's stable political climate and highly skilled workforce, make Malaysia an ideal location for a wide range of business ventures, from start-ups to multinational corporations.


Registering a business is fast and intuitive. The Companies Act of 2016 not only simplified the process of registration for businesses, but it also lowered associated costs and simplified some of the requirements for business once incorporated. To further speed up the process, entrepreneurs now have the option of submitting their documentation for registration entirely online.

Supportive Government Regulations

Another key advantage for companies incorporating in Malaysia is the country's favorable tax environment. The country's tax system is designed to encourage investment and growth. It offers a range of benefits to both local and foreign businesses. These include a low corporate tax rate, a range of tax incentives for businesses operating in key sectors, and a tax treaty network that provides businesses with access to double tax relief and reduced tax rates.

Regulations make it easy for foreigners to incorporate in Malaysia and the Malaysian government offers a range of incentives and support to foreign entrepreneurs looking to set up shop. These include tax breaks, subsidies, and access to resources like funding and mentorship programs.

Advantageous Location

The country's location offers a major advantage for foreign entrepreneurs. Located at the crossroads of the Asia-Pacific region, Malaysia provides businesses a strategic base from which to access key markets in the region including China, India, and other ASEAN countries. With its well-developed infrastructure, shipping ports, airports, and highways, Malaysia is well-positioned to support the growth of businesses in a wide range of industries including manufacturing, technology, and service sectors.

Additional Benefits

The Malaysian government is committed to supporting the growth of businesses in the country; it offers a range of services and resources to help businesses succeed, such as:

  • funding and mentorship programs
  • business training and development programs
  • efforts to streamline regulations and reduce red tape
  • programs promoting innovation and entrepreneurship

Businesses can enjoy ancillary benefits from the country’s multilingual population, high education standards, and well-developed infrastructure.

Final Thoughts

Incorporating in Malaysia provides a variety of benefits to foreign entrepreneurs, including access to a large and growing market, a favorable tax environment, and a supportive business infrastructure. With its stable political climate, skilled workforce, and strategic location at the crossroads of the Asia-Pacific region, Malaysia is quickly becoming one of the top destinations for foreign entrepreneurs looking to expand their businesses and grow in the region.

Nicky Minh

CTO and co-founder

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