If you want to start a business in Malaysia as a foreigner, this article can provide you with important information about administration costs, pros and cons, business climate, and much more. In addition to the company formation procedures in Malaysia that foreign entrepreneurs take into account from the start (you can read here more details), they also check the business challenges, the level of bureaucracy, etc. Therefore, we invite you to read these lines and also to get in touch with our Malaysian agents for further business support and counseling.
| Quick Facts | |
|---|---|
| Types of companies available in Malaysia |
– public & private limited company, – limited liability partnership, – sole proprietorship, – branch, – subsidiary, etc. |
|
Best cities for business in Malaysia |
– Kuala Lumpur, – George Town, – Malacca, – Ipoh, – Johor Bahru, etc. |
|
Minimum monthly wage |
Around RM 1,500 |
| Virtual office in Malaysia | Available for at least RM 85 per month |
| Office rental costs in Kuala Lumpur (approx.) |
Ranging between RM 6 and RM 10 per sq.ft./month. |
| Average salary per month |
Around RM 2,745 – RM 3,441 |
| Investment recommendations for Malaysia |
– tourism, – real estate, – stock market, – cryptocurrency, – investment funds, etc. |
| Malaysia’s economy in numbers |
Around 5.1% GDP growth registered in 2024, gross national income of around RM 1,616 billion in the same year |
| Tax benefits/deductions |
Tax incentives can be granted through income exemption or allowances to business owners in Malaysia, investment tax allowance for manufacturing, tourism companies, etc. |
| Level of bureaucracy | Might seem complex to foreigners, although digitalization and reforms are in progress. |
| Banking in Malaysia |
Malaysia has a dual banking system: conventional and Islamic. |
| Pros of doing business in Malaysia |
– stable and growing economy, – skilled workforce, – dynamic business climate |
| Cons of doing business in Malaysia |
High operational costs and bureaucracy challenges might affect international businessmen. |
| Time frame to start a business in Malaysia |
A few days or weeks, but it depends on the selected business structure. |
| We provide company formation services in Malaysia (YES/NO) | YES |
Table of Contents
How much does it cost to start a business in Malaysia, and how much does it take to start your activities?
Probably among the first questions related to the business climate in Malaysia, entrepreneurs think about company costs and the timeframe for company registration. Let’s review some of the main costs for opening a business in Malaysia:
- about RM 1,000 is the standard incorporation fee for a company limited by shares in Malaysia, one of the most popular business structures available;
- a virtual office package in Malaysia starts from RM 85 per month. Extra facilities are available for additional costs;
- renting an office space in Malaysia can start from RM 400 to RM 2,500 per month;
- the accounting services for a company in Malaysia can cost starting from RM 500 and even exceeding RM 2,000 per month, depending on the number of transactions and documents;
- around RM 950 can be the price for trademark registration in Malaysia;
- an entrepreneur interested in setting up a business in Malaysia as a foreigner should also consider the minimum share capital for the selected entity/structure, utility costs, employment-related costs, and more.
You can explore this infographic with details on this topic:
Pros and cons of doing business in Malaysia
Malaysia is a great business destination for international investors who appreciate the quality of the workforce, business climate, affordable business & administration costs, and many more. But before deciding on company incorporation in Malaysia, it is good to get an idea about the pros & cons:
- the overall employment rate in Malaysia is around 70.4%, while the unemployment rate is at the moment 3.1% (data for May 2025). More than 15.8 million represents the total workforce of Malaysia, according to data for 2025.
- the Malaysian government offers tax incentives for foreign businesses operating in sectors like tourism, manufacturing, agriculture, research & development.
- the corporate income tax in Malaysia ranges between 15% and 24% and it depends on the type of company.
- on the other hand, some entrepreneurs from abroad might find it hard to adapt to the business etiquette in Malaysia, local customs, and business environment.
- even though the English language is widely spoken in Malaysia, communication differences might be challenging in particular business backgrounds.
- the Malaysian authorities continue to digitize the administrative procedures for company formation in Malaysia to lower the bureaucratic complexities.
We invite you to watch this video presentation and have an idea of how to do business as a foreigner in Malaysia:
Foreign investments in Malaysia in a few lines
Malaysia is among the suitable choices for international investors who can enjoy a multitude of business development opportunities. These data highlight the importance of FDI in Malaysia:
- More than RM 254 billion was the total of foreign direct investments in Malaysia in the first 9 months of 2024.
- Most investors in Malaysia come from countries like China, the US, the Netherlands, Germany, and Singapore.
- Lastly, the Malaysian investment environment is supported by the country’s strategic geolocation and connections to Southeast Asian markets.
Now that you have an idea about Malaysia’s business climate, all you have to do is collaborate with our local agents. We invite you to access a free case evaluation by contacting our specialists for opening a business in Malaysia as a foreigner.