Distinguish
Content |
Factory Type | Company Type | |||
| WFOE | JVF | LMW | Reps. | BTC | |
| Foreign own | 100% | 1% - 99% | 100% | 100% | 100% |
| Domestic own | No | 1% - 99% | No | No | No |
| Minimum shareholder | 1 | 2 | 1 | No | 1 |
Min. directors of board  |
2 | 2 | 2 | No | 2 |
| Chairman / President | No limit | No limit | No limit | No limit | No limit |
Min. capital of 1st year  |
No limit | No limit | No limit | No | No limit |
| Where can be set up | nation wide | nation wide | nation wide | nation wide | nation wide |
| Time to set up | 45 days | 45 days | 45 days | 45 days | 45 days |
Products to foreign  |
Yes | Yes | Yes | No | Yes |
| Products to domestic | Yes | Yes | Yes | No | Yes |
| Material from foreign | Yes | Yes | Yes | No | Yes |
| Material from domestic | Yes | Yes | Yes | No | Yes |
GST  |
0-25% | 0-25% | 0% | No | 0-25% |
Tax Incentive program  |
No | No | No | No | No |
Corporate Tax  |
20%, 27% | 20%, 27% | 20%, 27% | 0% | 20%, 27% |
Personal income tax  |
0-28% | 0-28% | 0-28% | 0-28% | 0-28% |
| Withholding tax of dividends | 0% | 0% | 0% | 0% | 0% |
| GST levied on import | 10% | 10% | 0% | 10% | 10% |
| Tax refund of export | Yes | Yes | No | No | No |
| Reps. set up | nation wide | nation wide | nation wide | No | nation wide |
| Branch set up | nation wide | nation wide | nation wide | No | nation wide |
According to the Malaysia Company Act Article No.122, the directors must have principal place of residence in Malaysia.The requirement for paid-up capital is flexible in Malaysia, but it should reach MYR 250,000 (around USD 76,000), then the enterprise can apply the working permit for foreign employees.
It is stipulated in Malaysia that factory shall be set up in bonded areas when export amount exceeds 80%. Sales tax should be levied on products made in Malaysia and the imported goods. 5 yrs exemption incentive can only be applied to encouraged projects. Corporate tax is reduced to 27% in 2007, 20% for paid-up capital less than 2.5 million MYR with 1st year profit less than 500,000MYR.
Your personal income tax rate will be 0-28% if you live in Malaysia for over 182 days: 0% (less than 2,500MYR); 3% (2,501-20,000MYR); 7% (20,001-35,000MYR); 13% (35,001-50,000MYR); 19% (50,001-70,000MYR); 24% (70,001-100,000MYR); 27% (100,001-250,000MYR); 28% (Over 250,000MYR).