Set-up Your Company in Malaysia
In 2010, Malaysia launched the New Economic Model (NEM) and the Economic Transformation Program (ETP), which aim to lift the country into the rank of a high-income nation by 2020.
Based on the new strategy, Malaysia fosters the economy through the implementation of market-friendly policies and regulations with the aim of creating new sources of growth and promoting higher value-added sectors.
Taking into consideration the ease of doing business, talent development, and improving public service delivery, Malaysia is turning into an increasingly attractive place for businesses. However, there are a number of important considerations to be mindful of and compliant with when it comes to legal procedures to establish a legal entity in Malaysia. NNRoad with its local experts will help guide you with the smooth and fastest solutions for you to be ready to set up your legal entity.
Business entities you can open in Malaysia
1) Private Limited Company (Sdn Bhd or Bhd)
By forming a Private Limited Company (Sdn Bhd or Bhd), you are able to acquire assets, go into debt, sign contracts, liable to suing or being sued and it has a perpetual succession until the directors and shareholders decide to dissolve the company. This type of company is also a much more trusted business entity and it is the best preferred business structure in Malaysia, especially when it comes to conducting B2B type of business dealings.
This type of entity structure is the most carry out in Malaysia:
- Separate Legal Entity
- Limited Liability: If the company fails to meet its liabilities, the creditors will not be able to go after the owners’ personal assets.
- Credibility: A private limited company (Sdn Bhd) gives credibility to the business owners.
2) Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is an alternative company formation regulated under the Limited Liability Partnerships which combines the features of a company and a conventional partnership.
- Partners will never be borne by LLP debts and obligations. An LLP has the legal status of a body corporate which is capable of suing and being sued in its own name, holding assets and doing such other acts and things in its name as bodies corporate may lawfully do and suffer.
- It is the most common business vehicle used by entrepreneurs because this company formation offers flexibility in terms of its registration, maintenance, and termination.
Our Company Formation Service Includes:
- Confirm the selection of a business entity type.
- Assist with the selection of entity names.
- Consult with the entity location, offset up, office and building facilities maintenance, and office systems administration.
- Translate and certificate of legal document related to entity formation.
- Obtain entity formation certificate.
- Support with Post company setup services.
PEO/Employer of Record in Malaysia
NNRoad is a Professional Employer Organization (PEO) that provides Employment Solutions in Malaysia, also known as Employer of Record (EoR) services. Many companies opt to outsource their employees to minimize costs and legal risks when expanding their business operations in Malaysia. NNRoad is specified in helping foreign companies navigate through Malaysian employment laws and requirements, saving you time so you can focus on core business activities.
- Legally hire local and foreign employees without a legal entity established in Malaysia.
- NNRoad becomes your in-country employer of record for dispatched employees in Malaysia. You will still be responsible for the management of your employees.
Our PEO Service in Malaysia includes:
- Local contract signature
- Monthly payroll calculation and delivery
- Individual Income Tax compliance with local Malaysian authorities
- Statutory benefits administration
- Medical insurance
- Visa application (foreign employees)
- Expenses claim management
Malaysia, the next big hurdle is the process of actually hiring staff and dealing with the associated payroll obligations. Hiring, and the associated legal obligations that go along with it, can be a confusing process. Due to the complexities of the payroll and HR-related problems, many companies in Malaysia rely primarily on outsourced providers such as NNRoad when it comes to payroll and HR related.
NNRoad provides payroll and employment-related support services in Malaysia to an endeavor to provide a one-stop integrated service package to small and medium-sized businesses. We make payroll and HR management easy for you in terms of processing payroll, taxation, social labor security matters, as well as offering additional advice and guidance for any inquiries.
We perform service with great confidence in its rigorousness and speed to obtain the benefit for your employees, stress-free about ever-changing labor law, and administrative relief.
- Registering the necessary company and personnel information for payroll calculation in the payroll software and systems.
- Calculation of gross salary, salary deductions (e.g. social, employment insurance, etc.), and net salary based on information provided by the Company including irregular payments such as incentive/bonus, commission, allowance, severance, retirement payment, etc.
- Pro-rata calculation for people who join/resign.
- Payroll disbursement - Issuing payment notice to the Company for payroll distribution to employees and employee’s expense claim.
- Year-End Adjustment and Annual Declaration.
Managing accounting and bookkeeping in Malaysia can prove to be a time consuming and constantly changing area of compliance. For a foreign company, adapting to Malaysian accounting system with ever-changing standards and policies can be a real challenge. NNRoad with its local expert can act as your accounting mentors with professional and high skilled accountants and CPA to ensure your company is in compliance with all updated standards and policies.
- Full set accounting services in compliance with Malaysian legislation and accounting standards.
- Reconciliation of Bank Accounts.
- Preparation of Profit/Loss statement and Balance Sheets.
- Preparation of Trial Balance of Accounts.
- Accounts ready for audit.
- Corporate and Personal Tax consultancy services in compliance with Malaysian Tax Legislation.
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