Malaysia is one of the top destinations in Southeast Asia for foreign investors looking to establish a manufacturing business. With its strategic location, business-friendly policies, skilled workforce, and robust infrastructure, Malaysia offers excellent opportunities for global companies. However, navigating the legal, financial, and regulatory landscape can be challenging.
At Amaze Advisory, we specialize in helping foreign investors set up and expand their businesses in Malaysia. From company incorporation to obtaining licenses, tax compliance, and financial advisory, we ensure a smooth and fully compliant business setup.
Why Choose Malaysia for Manufacturing?
- 100% Foreign Ownership Allowed:
No local Malaysian partner required for most industries. - Easy Incorporation Process:
Company setup can be completed in 2-5 working days - Attractive Tax Benefits and Business Friendly Tax Regime:
Corporate tax incentives for selective industries. - Strategic Location:
Gateway to ASEAN’s 650 million consumers, China’s and India’s 2.8 billion consumers. In addition, you can get to major cities within 6 hours. - Business-Friendly Government Policies:
Malaysia welcomes foreign investments and ease of obtaining employment pass for expatriates. - Skilled Workforce:
A strong talent pool in engineering, manufacturing, and technology. - Well-Developed Infrastructure:
Modern industrial parks, ports, and logistics networks.
Step-by-Step Guide to Setting Up a Manufacturing Business
1. Choose the Right Business Structure
Foreign investors typically establish a Private Limited Company (Sendirian Berhad/Sdn Bhd) for manufacturing operations. This entity allows for 100% foreign ownership and provides limited liability protection.
Unsure which business structure is best for you? Amaze Advisory can help you make the right choice based on you industry and goals.
2. Register Your Company with SSM
All companies in Malaysia must be registered with the Companies Commission of Malaysia (SSM). The registration process includes:
- Step 1: Name Reservation
Choose and register a unique business name. - Step 2: Prepare Incorporation Documents
Including the company registration form, director/shareholder details, business address and resolution from corporate shareholder. - Step 3: Submit Registration Application
It will take 2 to 5 working days to obtain approval. - Step 4: Receive Certificate of Incorporation
Once approved, SSM issues the Certificate of Incorporation (Section 17).
At Amaze Advisory we handle all paperwork and ensure your business is registered quickly and efficiently.
Avoid registration delays—speak to Amaze Advisory today!
3. Obtain Necessary Licenses & Permits
- The company has ≥75 employees, or
- The company has fixed assets worth RM 2.5 million or more.
- Environmental Impact Assessment (EIA) for industries affecting the environment
- Halal Certification for food-related manufacturing
- Import/Export Licenses for trading raw materials and finished goods
Don’t risk non-compliance! Let Amaze Advisory secure all the necessary approvals for you.
4. Secure a Business Premise
Manufacturers can set up in industrial parks, free trade zones, or customized factory spaces. Choosing a Free Industrial Zone (FIZ) or Licensed Manufacturing Warehouse (LMW) can offer duty exemptions on imported raw materials.
5. Open a Corporate Bank Account
- Certificate of Incorporation (SSM Documents)
- Company Constitution
- Directors’ and Shareholders’ details
- Business License (if applicable)
Amaze Advisory simplifies the process by helping you choose the right banking partner.
6. Taxation & Incentives for Manufacturers
Malaysia offers competitive corporate tax rates:
- Corporate Tax (15%/17%/24%) Standard rate for companies.
- 0-10% tax under Pioneer Status (PS) for selected industries
- Investment Tax Allowance (ITA) of up to 100% on capital expenditure
Maximize your tax savings with our expert tax planning services! Amaze Advisory helps businesses legally reduce their tax burden while ensuring full compliance.
7. Hiring Employees & Work Permits
Manufacturing businesses can hire local and foreign workers. Key employment regulations include:
- Minimum aage: RM 1,700/month (as of Feb 2025)
- Foreign worker quota & permits: Employment Pass (EP) or Professional Visit Pass (PVP) for expatriates
8. Import & Export Regulations
Manufacturing businesses dealing with international trade must comply with:
- Customs Duties & Sales and Service Tax (SST)
- Free Trade Agreements (FTAs) benefits
- MyTRADE System for customs declarations
Common Challenges & How Amaze Advisory Can Help
| Challenge | Solution by Amaze Advisory |
|---|---|
| Bureaucratic processes | We handle all paperwork, approvals, and compliance |
| Banking & financial setup | We assist in choosing the right banking partners |
| Labor shortages | We help navigate foreign worker permits and quotas |
Conclusion
Setting up a manufacturing business in Malaysia offers significant growth potential for foreign investors. By following the right legal and regulatory steps, you can establish a successful manufacturing operation while benefiting from government incentives and Malaysia’s strategic advantages.
At Amaze Advisory, we provide end-to-end business setup solutions, including:
- Company Incorporation, Company Secretary and Nominee Services
- Accounting & Financial Advisory
- Tax & Advisory
- Payroll Outsourcing
- Employer of Record (EOR)
- Immigration & Global Mobility
Get Started with Amaze Advisory Today!
Phone: +6013-284 7678 / +6013-323 7678
Website: www.amazeadvisory.com
