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New Initiatives Launched By SSM to Help Businesses Recover Economically

New Initiatives Launched By SSM

New Initiatives Launched By SSM to Help Businesses Recover Economically

The COVID-19 pandemic has negatively impacted the majority of the companies and businesses in Malaysia. As a result, the government and other authorities concerned are introducing more and more initiatives to support businesses and help them recover so that the overall economy can also recover quickly and efficiently.

 

The Companies Commission of Malaysia (SSM) is leading the way for economic recovery by introducing more than 20 economic programs that can help companies and businesspeople to mitigate the impact of the pandemic on their companies.

1. Pemerkasa Agenda

Three of the major initiatives were introduced as part of the Pemerkasa agenda. According to the first initiative in Pemerkasa, the current threshold of indebtedness was increased from RM10,000 to RM50,000 till 31st December 2020.

 

Similarly, the period in which a company must respond to a notice of claim was extended by six months to give organizations more time to deal with financial issues.

 

The second important initiative to support businesses was to provide free company registration in Malaysia to B40 group entrepreneurs and full-time IPT students who want to enter the business industry. Another initiative in the Pemerkasa agenda was to offer help to specially-abled individuals in company registration and also renewing the business licenses with SSM for free of cost.

 

It is also expected that the SSM will continue to provide more financial initiatives to mitigate the impact of the pandemic on the business community. A major focus of the authorities is on allowing businesses to get their registrations renewed quickly.

2. Zakat Allocation

It has also been announced that SSM has spent a total of RM3.6 million in Zakat allocation and about RM250,000 in corporate social responsibility to uplift the economy. The SSM is already in the process of designing plans to continue these efforts so that struggling businesses can keep surviving through the economic crisis.
New Initiatives Launched By SSM-1

3. ‘Usahawan Bijak, Usahawan Berdaftar’ Campaign

SSM has introduced a new campaign called ‘Usahawan Bijak, Usahawan Berdaftar.’ The purpose of this campaign is to provide training to potential entrepreneurs in an ethical and trustable manner so they can work for the benefit of the country’s economy. It is one of the large-scale campaigns to encourage the public to register their businesses in Malaysia and get the benefits of various financial initiatives.

 

The primary purpose of the campaign is to attract full-time business students to apply to Prihatin Business Registration Scheme (SPPP) and get their businesses registered without spending any money, as the government is doing it for free. This kind of the first step will set a solid foundation for budding entrepreneurs to enter the business sector and become successful.

 

If any company wants to get such benefits, they must register with SSM under the Business Registration Act 1956 or the Companies Act 2016. If business owners are facing issues related to Malaysia company registration or financial management, they always have the option of hiring professional accounting services in Malaysia to get through the process.

4. SSM BizTrust

SSM has also introduced the “SSM BizTrust” platform that can benefit online business companies in many different ways. The purpose of this platform is to allow online business owners to get official certification that can be shown on the business’s website and social media. 

 

The good thing is that the SSM is offering the SSM BizTrust to all of the online businesses in Malaysia for free. Therefore, you do not have to go through any other additional company registration process. Instead, the government is implementing a variety of steps to mitigate the burden on online businesses. 

 

It serves an essential goal of reinforcing customer confidence in the businesses. The introduction of the SSM BizTrust QR Code has made it even easier for the customers to obtain all of the information about a business by simply scanning the code.

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In a Nutshell

SSM and other government agencies are trying their best to make the Malaysia company registration process smoother and easier. Other than the registration process, a number of initiatives have been introduced by the SSM to help businesses recover their finances and have a positive impact on the GDP as well.


These initiatives are already bringing in the business community. It is expected that the same positive trend will continue because most financial institutions are still focused on helping businesses in their recovery.


For more information, feel free to get in touch with us.

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How Has Business Registration Changed in Malaysia (2021)?

How Has Business Registration Changed-2
Executive decision. Business woman making a deal with partners. Closeup of female hand signing contract.

How Has Business Registration Changed in Malaysia (2021)?

Incorporating a business is an essential part of establishing a brand-new business. Company registration in Malaysia is also important to ensure maximum compliance with the legal rules and regulations. There have been some significant changes in the company registration process in Malaysia.

 

One of the most significant changes made by the Companies Commission of Malaysia (SSM) is that the new registration format must consist of 12-digits for companies, businesses, and Limited Liability Partnership.

1. Growth in Online Businesses

The COVID-19 pandemic has negatively impacted companies, especially small and medium-sized businesses. In order to recover from the massive financial losses and grow their business, many people are moving towards modern online business models. The exponential growth in online businesses in Malaysia is a testament to the fact that such models are helping SMEs keep afloat during the economic crisis.

 

Statistics also indicate that after the Movement Control Order (MCO) was enforced in March 2020, online trading increased quickly. The number of new companies registering in Malaysia and acting as online businesses also increased in this period. As a result, the company registration process was also made easier and more efficient for people who want to establish online businesses.

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2. E-Commerce Industry

The official data collected by SME Corporation Malaysia indicates that the e-commerce participation in SMEs increased by 3% between the period of March and October 2020 compared to the last year.

 

The government authorities are also encouraging entrepreneurs to adopt a balanced business model that bridges the gap between information and modern technologies so that the best tools and technologies can be used for the growth of Malaysia’s economy, especially the SME sector.

 

However, this growth is not only limited to the Malaysia company registration process. More and more accounting firms in Malaysia are providing consulting services to help the companies get through the economic crisis and even improve their business processes during this period.

3. Digitalization of Business Operations

Digitalization of essential business operations, like company registration in Malaysia, as well as running a well-established business, is likely to bring a number of benefits to companies as well as the overall economy of the country.

 

Some experts have also started to call the current economic issues a blessing in disguise because it allows companies to shift towards modern e-commerce solutions that will positively impact economic development. Official statistics show that if more SMEs start doing online business, they will be able to significantly increase their contributions to Malaysia’s GDP.

How Has Business Registration Changed

4. Expectations

It is highly expected that the trend of online business will continue to grow, even after the pandemic is fully over, because a large number of users now prefer online shopping over visiting a traditional brick-and-mortar store.

 

Such changes can be good for the economy, but companies must be careful while making the changes and adopting suitable strategies to adapt to the current business environment.

5. Changes in Marketing

Online businesses mainly depend on digital marketing, so it has become important for entrepreneurs and marketing teams to become familiar with the best digital marketing practices so that they can attract more customers, especially in the highly competitive e-commerce industry.  

 

Some companies and accounting firms in Malaysia are also offering professional services to help businesses make a positive shift towards online business with proper marketing. Social media platforms, like Facebook and Instagram, play an integral role in marketing products online and reaching a maximum number of potential customers.

In a Nutshell

Malaysia’s business environment has completely changed in 2021 due to the global pandemic. In terms of the Malaysia company registration process, more focus is now placed on the online application, making the process smoother and quicker to encourage more entrepreneurs to start their business.


An easy company registration process means the business owner will not have to worry about incorporating their company. Instead, they can do it quickly and focus on other important business aspects, like marketing.


Similarly, well-established companies have also changed in this unprecedented period because they have now realized the significance of online business operations and digital marketing to reach a wider audience.


Professional accounting firms offer a wide range of services to help entrepreneurs register their companies easily and ensure compliance with the law to keep their businesses functioning efficiently and legally. For more information, feel free to get in touch with us.

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A 2021 Guide to Incorporating a Company in Malaysia

Guide to Incorporating a Company

A 2021 Guide to Incorporating a Company in Malaysia

The Malaysian economy has been growing for several years (until the pandemic came) because it is considered to be one of the best in the region with friendly FDI regulations and a smooth and efficient incorporation process. When you are in the process of establishing your business and incorporating a company in Malaysia, you are likely to have many questions associated with Malaysia company registration.

 

In this post, you will learn the complete process of incorporating your business in Malaysia:

Requirements

Before you start learning about the basic steps of the Malaysia company registration process, it is important to become familiar with the requirements of the incorporation process. Let’s look at these requirements one by one:

1. Names and Shareholders

To successfully incorporate your company in Malaysia, you must get approval for the company name for your proposed business. Moreover, it is important to have at least one shareholder who can either be a part of the corporate management or an individual. Private limited companies can have a maximum of 50 shareholders while there is no limit on public limited companies.

2. Number of Directors

The criteria for both private and public limited companies are different in terms of the directors. The private limited companies must have at least one director who is a resident of Malaysia and eligible to hold the position under the Companies Act. At the same time, public limited companies must have at least two directors living in Malaysia.

3. Company Secretary

All of the companies that want to get incorporated in Malaysia must have at least one company secretary. According to the Companies Act, every company must hire a company secretary within 30 days of incorporating the company. 

 

There are certain other requirements that every company must fulfill at the time of incorporation. These requirements include a minimum capital of RM 1 and having a registered and business address to show during the incorporation process.

Guide to Incorporating a Company-1

4. Documents

Generally, no major requirements are needed at the time of incorporation. However, the business owner and the applicant might be required to show scanned copies of shareholders’ and directors’ IDs at a later stage. Other important documents, like the transfer pricing document, also play an integral role after the company is incorporated.


It can be quite challenging for people to keep up with these requirements, especially for those who are not familiar with the various legal technicalities. Therefore, it is always a good idea to hire professional accounting services in Malaysia to get through the process of company incorporation.

Choose the Type of Business

There are a total of eight types of business entities in Malaysia. It is important for you to research these business entities to ensure you choose the right kind of business for yourself. Some of these popular types are a sole proprietorship, a private limited company (Sdn Bhd), and a public limited company (Bhd).

 

Foreigners can only establish private limited companies, like Sdn Bhd companies. On the other hand, residents have the option of setting up sole proprietor or public liability companies.

Guide to Incorporating a Company-2

Four Main Steps to Incorporate a Company in Malaysia

Now that you are familiar with the requirements and the kind of company you want to incorporate in Malaysia, you can start the incorporation step in these four main steps:

Step # 01 – Choose a Unique Company Name

You have to choose a unique name for your business and make sure it is not being used by any other company in Malaysia. You can pay RM 50 to reserve a certain name for the period of 30 days if you are not sure whether you want to incorporate your company in Malaysia.

Step # 02 – Compile and File Information

Once you have got the approval for your proposed company name, your next step should be completing the Malaysia company registration form that includes information like the name of the business, type of business entity, detailed description, information about the company directors and shareholders, and other such essential information.

Step # 03 – Payment

Once the entire incorporation application is filed, you can pay the incorporation fee. Currently, the fee for unlimited companies and companies limited by shares is RM 1000, while the fee for companies limited by guarantee is RM3000. You can get help from accounting services in Malaysia to ensure you have provided all the important details and have maximum application acceptance chances.

Step # 04 – Obtain Notice of Registration

Once your application is accepted and the company has been incorporated, you will get a unique registration number via Notice of Registration.

In a Nutshell

By keeping these factors in mind, you should have no issue getting through the incorporation and Malaysia company registration process. Even if you face any issues, you can always rely on accounting services to get help from experts and professionals.

 

For more information, feel free to get in touch with us.

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How Can Businesses Be Prepared For The New MCO?

Businesses Be Prepared For The New MCO

How Can Businesses Be Prepared For The New MCO?

The MCO or the lockdown due to the COVID-19 pandemic has affected all types of businesses in different ways. Business owners are looking for reliable and efficient ways to get back their customers and survive the economic crisis as a result of the pandemic.

 

The purpose of this post is to help companies avoid or minimize the negative impact of MCO. Business owners can follow these important tips and tricks to manage and improve customer experience and get a much-needed boost for their business:

1. Digitalization

Using modern tools and technology has become more important than ever before because the pandemic has forced companies to turn to digital solutions to fulfil various business functions.

 

There are many different steps that you can take to expand the digital reach of your business and establish a large and loyal customer base. For instance, setting up accounts on social media platforms is the key to get the benefits of a large audience on social media.

 

Some of the most important steps you should take for the digitalization of your business are:

  • Developing a professional website with information about your company, products and services
  • Using an e-commerce platform to promote products and make it easier for customers to buy your products
  • Creating a strong presence on social media platforms like Facebook and Instagram
  • Simple and secure payment system
  • Automated response systems using chatbots to give quick responses to the customers

 

There is a high chance that you might already be using some of these platforms, but it is important to focus on them more to ensure the MCO has a minimum impact on the business.

2. Up-to-date Information

The rules and regulations are quickly changing during the pandemic as the government and other authorities are introducing various strategies and programs to get through the economic crisis. It is important for business owners to keep with the changing regulations.

 

Generally, a business owner does not have enough time to focus on such things because he or she has to work on expanding the business and other core functions. In such a situation, you should consider hiring an accounting firm in Malaysia that is familiar with all financial rules, tax regulations, and other aspects like transfer pricing.

Businesses Be Prepared For The New MCO-2

3. Simplification

Companies now have to simplify their buying process as much as possible because the customers want to make the decision quickly instead of spending too much time in a single place. Business owners also have to implement strict hygiene practices to ensure the SOPs are being followed after MCO is lifted. These strategies can vary on the type of business you are running.

4. Cashless Payment System

Providing an e-wallet payment system to the users is an important part of digitalization. This kind of system will facilitate the customers to make the payments online and don’t worry about handling currency notes.

 

A large number of people are uncomfortable with using cash now during the pandemic because currency notes can carry a lot of germs and viruses. By introducing a safe and secure cashless payment system, you will be able to attract more customers.

 

The transition towards e-wallet has been going on for a couple of years now. However, MCO has certainly given it a significant boost. More and more companies are shifting towards contactless payment systems, so it is highly recommended that you also take this step to keep up with the modern trends.

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5. Hire a Professional Accounting Firm in Malaysia

Hiring a professional accounting firm in Malaysia is one of the most reliable steps that you should take to prepare your business for the new MCO and also bounce back from the negative impacts of the pandemic on your finances.

 

You can rely on an accounting firm to thoroughly analyze your business and provide useful advice to make your business process more efficient, productive, and profitable. Moreover, professional accountants will make sure your company is complying with all of the legal rules and regulations related to company registration and tax submission (including transfer pricing in Malaysia).

 

Let the experts manage the finances and payroll system of your business so that you have more time and energy to focus on the core functions of the business.

In a Nutshell

Amidst the pandemic, businesses are facing one of the biggest challenges in human history. The five tips discussed in this post are some of the most important and effective strategies that will not only help your business prepare for the new MCO but also quickly recover from the economic crisis created by the coronavirus pandemic.


For more information, feel free to get in touch with us.

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5 Company Taxes In Malaysia You Need To Be Aware Of

Company Taxes In Malaysia
young woman wearing a black suit,using the phone in the office

Five Company Taxes In Malaysia You Need To Be Aware Of

As a business owner, it is critical for you to be familiar with the various types of company taxes applicable to your business in Malaysia. Getting familiar with these types of taxes will also help you in obtaining the right kind of tax incentives in Malaysia. By engaging in a professional accounting service in Malaysia, you will be able to keep up with the changing tax regulations.

 

This post explains the five major company taxes in Malaysia.

1. Corporate Tax

Corporate income tax is the direct tax that businesses in Malaysia have to pay under the Income Tax Act 1967. This tax is applicable to all companies registered in Malaysia. Generally, the rate of the corporate tax is anywhere between 17% to 24% for companies that generate taxable income from sources within Malaysia.

 

The exact rate of the corporate tax can greatly vary from business to business and on the basis of the yearly budget. However, it is the responsibility of every company in Malaysia to submit and file the corporate tax on a yearly basis.

 

The taxable income in Malaysia includes business profits, interests, rents, and other sources of income. Accounting services can help businesses in evaluating these incomes and making sure the company is complying with all of the essential rules and regulations related to corporate tax.

2. Withholding Tax

Withholding tax is applicable to companies that are using the services of non-resident individuals or companies when a significant amount of payment has to be deducted and submitted as income tax. 

 

There are certain tax incentives in Malaysia that allow you to avoid withholding tax or at least reduce it, like the double taxation agreements. Contact a professional audit firm in Malaysia to understand such incentives. Companies must pay the withholding tax within one month from the date of payment to a non-resident individual or company.

3. Payroll Tax

According to the rules and regulations in Malaysia, it is the responsibility of the employer to retain a certain percentage of the employees’ remuneration like bonuses, incentives, commission, and salaries, which should be submitted as the Monthly Tax Deduction (MTD) to the LHDN.

 

It is important to show this type of tax on the payslip of the employees. The payroll tax has to be paid by the 15th of each month based on the remuneration provided to the employees in the previous month.

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4. Stamp Duty

It is essential to pay the stamp duty when your company is dealing with legal, commercial, and financial documents. Some of the common taxable instruments include partnership and mortgage agreements.

 

Generally, companies have to pay two types of stamp duty: the fixed tax rate you have to pay and the one that is dependent on the nature of the instrument. You can also rely on accounting services to get tax incentives in Malaysia.

5. Sales and Service Tax (SST)

The sales tax is a tax that is applicable to manufactured products or products that are imported to Malaysia by a taxable company. When the revenue of such a company is more than RM500,000 within the period of 12 months, the company must pay the sales tax.

 

However, there are several tax incentives that apply to service tax. Items such as face masks, medical and laboratory equipment, PPE, and disposal items are exempted from the service tax.

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It is important that you do not confuse service charges with service tax. Service tax is the tax that is applicable on taxable services in Malaysia like accommodation, gaming, and services being provided by a taxable individual that has a total value of greater than RM500,000 in 12 months.

 

For the food and beverages industry, the threshold of the total value is greater than RM1,500,000 in 12 months. Since there are different rules that govern the types of SST taxes in different industries, it is better for the companies to rely on a professional accounting service and an audit firm to ensure they are able to keep up with these regulations.

In a Nutshell

These are the five most important taxes in Malaysia. In fact, companies with different business nature are required to pay different taxes. Accounting services in Malaysia help the companies in getting all of the available tax incentives and get through the process of taxation in an efficient manner.

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8 Great Ways To Mitigate Business Cost During Poor Economy

Mitigate Business Cost During Poor Economy-2
Portrait of successful young Asian businesswoman at office, colleagues in background.

8 Great Ways To Mitigate Business Cost During Poor Economy

Statistics indicate that a large number of businesses fail within their first five years due to a variety of reasons, including massive business costs. Therefore, it is important for every type of business, including large-scale corporations, to get familiar with some important tips and tricks they can follow to mitigate business costs.

 

Cutting business expenses can be a much smoother and efficient process if the companies rely on accounting services in Malaysia to get the best advice on taxation, auditing, and payroll and HR services.

 

Following are the top eight ways you should follow to reduce your business cost and get through an economic crisis:

1. Less Printing and Copying

Large organizations typically do not pay much attention to the massive cost they have to bear for managing multiple in-house printing and copying equipment. The costs associated with printing include printing supplies, cartridges, and regular repair and maintenance services. 

 

More and more organizations are looking for modern e-solutions to reduce paper usage and prevent a significant amount of business costs from being spent on the printing and copying process. Therefore, large organizations should definitely focus on reducing their printing and copying costs.

2. Review Investment Plans

If your company is going through a financial crisis, then this is the best time to thoroughly review your investment plans and make sure the company is getting the best out of the available investment opportunities.

 

There is a high chance that you will be able to significantly improve these plans and implement cost-efficient tools and technologies to bring down the total business costs.

3. Get Help from the Government

The government and other relevant authorities provide a wide range of tax incentives and financial opportunities to help businesses survive the economic downturn. For instance, the government has introduced several tax incentives for companies that are affected by the COVID-19 pandemic.

 

In such a situation, it is better to rely on the professional accounting services and accounting firms in Malaysia to ensure you are getting the best advice to manage your finances and enjoy the available incentives.

Mitigate Business Cost During Poor Economy

4. Efficient Space Utilization

Large businesses have large offices dedicated to different departments. While a big space is important in ensuring the smooth running of a business, it is also common that the space is often not fully used efficiently.

 

Hence, companies have to focus on making sure all of the available space is properly utilized. In an economic crisis, companies can also choose to rent out the excess space to generate more income.

5. Use Modern Technology

Businesses typically dedicate a significant amount of money towards buying modern tools and technologies. Yet, there are many businesses that are still not using modern technology for various benefits.

 

Using such new tools will help companies in optimizing their work procedures and getting maximum benefits by implementing the best solutions. For instance, there has been a lot of innovations in the traditional manufacturing industry that enable them to become more efficient and productive.

6. Use Freelancers

In an ideal financial situation, large companies have enough financial resources to hire a large number of employees. However, to save business costs, companies should consider hiring freelancers and independent contractors as it is easy to get their services for a short period of time.

 

Moreover, companies do not have to spend much time and money on hiring long-term employees. Instead, they can hire freelancers at a more affordable rate.

7. Pay Invoices Early

Many vendors are willing to provide discounts if customers pay the invoice early. Such discounts can seem small to large companies, but they can help in saving a significant amount of money in the long run. During an economic slowdown, as most businesses want to have as much cash reserve as possible, many are willing to provide a discount for early payment. 

 

Large businesses are typically capable of paying these invoices in advance. Therefore, they should bear this in mind when choosing their vendors if they are keen on reducing their business costs.

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8. Outsource Accounting Services in Malaysia

Another highly reliable and efficient way to mitigate business costs is to outsource your accounting services in Malaysia to a professional accounting firm. 

 

Moreover, professional accountants can help you in getting the best out of their payroll and HR services. In other words, these professionals have experience in dealing with a variety of financial and HR issues and help your business get through the crisis.

In a Nutshell

These are the top eight ways that a business can follow to bring down the expenditures and ensure sustainability through a financial crisis. The ultimate goal of companies in this challenging time should be enhancing efficiency and productivity and control expenses at the same time for maximum profits.


For more information, feel free to get in touch with us.

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What happens if you forget to update the transfer pricing document in Malaysia?

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Business man busy standing at office desk on documents working , business concept

What happens if you forget to update the transfer pricing document in Malaysia?

Many significant changes have been made in the Malaysian Income Tax Act 1967 through the Malaysian Finance Act 2020. One of these major changes is that if the taxpayers fail to provide proper transfer pricing documentation to the Malaysian Inland Revenue Board (MIRB) within a specified date, a fine that ranges from RM 20,000 to RM 100,000 can be placed.

 

Similarly, there have been some revisions in other transfer pricing document guidelines by the MIRB. The purpose of this post is to discuss these important aspects of transfer pricing. 

Important Changes in Transfer Pricing Policy in Malaysia

Tax authorities and the government have started to place more emphasis to ensure taxpayers comply with the requirements of transfer pricing documentation and other tax-related requirements. MIRB has put strict policies in place to enforce the legislation.


Taxpayers now have a short window of only 14 days to provide transfer pricing documents. Hence, they have to consider various aspects of transfer pricing in Malaysia and ensure maximum compliance with these guidelines.


Similarly, organizations that have already established the process to prepare transfer pricing documents should also focus on reviewing these guidelines and keep them aligned with the latest requirements of the taxation authorities.

Every organization should have reliable financial policies in place to avoid issues during an audit.

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Introduction of the Transfer Pricing Documentation Penalty

Generally, taxpayers who are involved in controlled transactions have to maintain up-to-date transfer pricing documents. Moreover, a thorough transfer pricing documentation might include a number of documents and financial records such as:

  • Organization structure that shows the entire ownership structure, along with the description of the management structure. If there are any significant changes in the company’s structure, it becomes important to update the transfer pricing document in Malaysia. Otherwise, penalties can be imposed on the taxpayers.
  • Description of the controlled transactions, such as details of the involved parties and overall description of the business
  • Pricing policies often include mathematical calculations, along with the formulas applied to calculate the pricing.
  • Additional information about strategies being used relevant to the transfer pricing

 

Many companies assume that this document has to be submitted along with the annual income tax returns. However, MIRB has not set any specific date or time of the year at which the corporations must file their transfer pricing documents. Instead, they have to furnish the transfer pricing document whenever the MIRB requests them to do so.

 

TDP penalty has been introduced to penalize the taxpayers who fail to provide the transfer pricing documentation to the MIRB within the given time. The fine on such a penalty is anywhere between RM 20,000 to RM 100,000. It can also include imprisonment of up to six months.

 

Therefore, the introduction of the TDP penalty plays an important role in the tax and accounting policies of the companies. It is highly recommended that the companies keep up with these changing requirements to avoid the penalty and get through the audit process easily.

update the transfer pricing document

Imposition of a Surcharge

The latest changes in the regulations related to transfer pricing allows the Director-General of Inland Revenue (DGIR) to impose a surcharge of up to 5% on the transfer pricing adjustments, irrespective of the fact that these adjustments have been led to additional tax or not.

 

Similarly, new provisions have been introduced to increase the power of the DGIR. According to such provisions, the DGIT has the power to make adjustments to the structures adopted in controlled transactions. The purpose of such adjustments is to make sure the transactions are carried out at arm’s length.

In a Nutshell

Keeping up with these different rules and regulations can be challenging for companies, especially when they are already dealing with a wide range of other issues.  The introduction of the penalty to provide transfer pricing documents and the power to impose a surcharge on the transfer pricing adjustments have significantly changed the way it works in Malaysia.


Every company should try to keep their transfer pricing document up-to-date in Malaysia because MIRB can ask them at any time to provide this essential document. Failure to comply with the instructions can lead to significant penalties and losses in the company.


Companies with efficient transfer pricing policies and documentation are assured of a smooth audit process. For more information, feel free to get in touch with us.

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Do You Need A Tax Consultant For Your Business In Malaysia?

Tax Consultant

Do You Need A Tax Consultant For Your Business In Malaysia?

Taxation is one of the most important aspects you have to keep in mind when you are running a business. In fact, each business strategy and decision is impacted by the tax regulations in some way or another. Accounting firms in Malaysia help the companies in navigating these tax rules and regulations and ensure they comply with all applicable rules.

 

Engaging a professional accounting service in Malaysia can ensure companies have access to professionals who have years of experience in accounting practices and dealing with various tax policies and regulations. Such services can ultimately help companies in optimizing efficiency and profitability.

 

This post aims to help businesses in Malaysia in getting familiar with the benefits of hiring a tax consultant. Let’s start with some basics:

What is a Tax Consultant?

A tax consultant is a professional who deals with the tax rules and regulations, along with financial-related counselling for various types of business. Getting the services of a tax consultant is important to obtain reliable advice on tax-related matters. 

 

Moreover, tax consultants also have the up-to-date knowledge you will need to keep up with the evolving tax requirements at local, federal, and state levels. Hiring a tax consultant ensures companies enjoy all the available tax incentives in Malaysia and comply with all tax-related regulations.

 

Professional accounting services from a qualified tax consultant in Malaysia can help companies in the following matters:

1. Corporate Income Tax Compliance

There have been some significant changes in terms of the rules and regulations related to corporate tax in Malaysia. If you want to keep up with these regulations and ensure maximum compliance, you should hire a qualified tax consultant who is familiar with the working procedures of the Malaysian Inland Revenue Board to ensure the company is implementing the best taxation practices.

Tax Consultant-2

2. Cross-Border Tax

The rules regarding cross-border taxation in Malaysia have become quite complex and strict in the last few years because more and more companies are now dealing with cross-border transactions and trade. However, these rules can greatly vary depending on country-by-country reporting and the nature of business. 

 

When you are running a business, it can be quite challenging to keep up with tax-related matters as you have to focus on many other factors. Therefore, it’s recommended to obtain an accounting service in Malaysia that can help you in ensuring full compliance with the cross-border tax rules.

3. Double-Taxation Agreement (DTA)

DTA is a legal contract that allows companies to avoid double taxation. Such agreements are typically signed by the cabinet ministers and hold great importance when it comes to getting different tax incentives in Malaysia. 

 

An experienced and professional tax consultant can help businesses in Malaysia easily get the benefits of these DTAs as they are well-familiar with the relevant DTAs that might be applicable to the business. Avoiding double taxation will ultimately help companies in saving a significant amount of money.

4. Real Property Gain Tax (RPGT)

If anyone generates income from the disposal of real property in Malaysia, he or she will have to pay the RPGT. This tax is applicable to non-residents as well. However, not every company and individual has complete knowledge about these types of taxes. As a result, obtaining a professional accounting service becomes important to get through the process easily.

5. Dealing with Inherited Money

If you have inherited money, whether it is a big amount or a small one, you should use the services of a professional tax consultant before filing your taxes. Although there is no specific inherent tax in Malaysia, it is important to prepare thorough documents that declare the assets of the deceased individual.  A tax consultant can help you in organizing these documents and ensure you get the inheritance without any hassle.

Tax Consultant-1

In a Nutshell

When engaging a professional accounting service in Malaysia, make sure that the tax consultant of your choice has sufficient experience, knowledge, skills and qualification to deal with a wide range of tax-related matters. 


Similarly, companies should hire tax consultants who have experience in dealing with the relevant type of business. All of these factors play an integral role in enhancing the efficiency and reputation of the company and ensuring a smooth taxation process.

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Register Your Company with SSM – Fast & Simple 2025 Guide

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7 Easy Steps To Register Your Company With SSM in Malaysia

A private company limited or Sdn Bhd is one of the most popular types of Malaysian company registration. The popularity of these types of entities has greatly increased since the implementation of the Companies Act 2016.

 

However, companies have to keep in mind that the rules and regulations of company registration in Malaysia often change, so it’s important to keep up with the evolving regulations and ensure they are in maximum compliance with the law.

 

Following are the seven steps that you should follow to register your company with the Companies Commission of Malaysia (SSM):

Step 1: Meet the Eligibility Criteria

First of all, make sure that you meet the eligibility criteria to incorporate your company in Malaysia. You will need at least one director and one shareholder for Malaysia company registration. Under the Companies Act 2016, the director and shareholder can be the same person. Moreover, the director of a company should be:

  • 18 years old or above
  • A resident of Malaysia
  • Not disqualified or deemed ineligible for the role of the director under Section 198 of the Companies Act 2016.

 

You should also become familiar with the roles of both directors and shareholders in a Malaysian company to make sure the person(s) appointed to these important roles can carry out their responsibilities.  

Step 2: Gather Information and Documents

You should prepare for the process of company registration in Malaysia in advance by gathering all the essential data you will need in the incorporation process. Some of this information includes:
  • Proposed company name
  • Nature of the business
  • Registered business address
  • Detailed information about the directors and shareholders
The following two documents will also be needed for company incorporation:
  1. IC for identity verification.
  2. If the company name of your choice is already registered by an entity, then you will require an authorization letter.

Step 3: Payment

You will have to pay the SSM incorporation fee of RM1,010 (including tax). If you are using professional accounting services in Malaysia or a company secretary, it will incorporate the company on your behalf, then you might have to pay some additional charges.

Step 4: Incorporation via MyCoID Portal

You can start the company incorporation process on your own by using the MyCoID portal. This is a very user-friendly system from the SSM that allows you to easily go through the process of company registration in Malaysia. First, you will have to register an account at the portal.
businesswoman working in sofa

Step 5: Account Activation

Once you have registered the account on the MyCoID portal, you will get an email to activate your account. After the initial account activation, visit an SSM counter to validate your registration.  Finally, after verification, you will receive the login credentials through email.

Step 6: Company Name Search

The next step is to choose a unique name for your company that will help you establish a proper brand for your business and ensure you are complying with the legal rules and regulations related to selecting a company’s name.

 

You can use the MyCoID portal to search the database and ensure your proposed name is available.

Step 7: Input Information

In the final step of Malaysia company registration, use of all of the previous steps in the following ways:

  • First, enter the proposed company name in the final form and provide all of the essential details about it, like any controlled trademark or the authorization letter, if applicable.
  • Select the business code related to the type of business you want to establish and give a description of it and the registered business address.
  • Provide the essential information about company directors and shareholders gathered in the second step.
  • The final page will provide you with the complete application. Review it to ensure there are no errors in the application.
  • Submit the application, along with the incorporation fee of RM1,010.

SSM Company Registration Updates in 2025 (What’s New?)

As of 2025, the Companies Commission of Malaysia (SSM) continues to streamline the incorporation process through its MyCoID 2016 system.

Here are key updates:

  • Faster Processing: Most Sdn. Bhd. registrations are now processed within 1–3 working days if documents are in order.

  • Mandatory Digital Signature: All company directors must sign incorporation documents using a valid digital signature.

  • Renewed Compliance Requirements: SSM has tightened checks on company names, director eligibility, and business nature codes.

Tip: Always conduct a name search early and prepare all digital documentation to avoid rejection.

Cost Breakdown for Company Registration in Malaysia

Type of FeeAmount (RM)
Company Name Search (per name)RM 50
Incorporation Fee (Authorized Capital ≤ RM400,000)RM 1,000
Digital Signature & Filing AdminRM 200–RM 400
Professional Service Fee (optional)RM 800 – RM 2,500
Total Estimated CostRM 1,850 – RM 3,950

Using a corporate service provider like ShineWing can help speed up the process and ensure compliance.

Company Registration Timeline (Malaysia 2025)

StepEstimated Time
Name Search via MyCoID1–2 working days
Document Preparation2–3 working days
Digital Signature Collection1 working day
SSM Review & Incorporation Approval2–4 working days
Total Time (Estimate)5–10 working days

Note: Delays can happen if the business nature is vague or supporting documents are incomplete.

Top 5 Mistakes to Avoid During SSM Registration

1. Submitting an unapproved company name

Always wait for official name approval before preparing documents.

2. Using a residential address as business premise

Some business types require commercial addresses—check your zoning.

 

3. Incorrect business nature codes (MSIC)

Choose accurate codes to avoid rejection or classification issues later.

4. Missing digital signature setup

All directors must complete e-signature requirements before filing.

5. Not appointing a qualified company secretary

This is mandatory within 30 days of incorporation.

Frequently Asked Questions (FAQs) About Company Registration

Yes. Foreigners can register a company in Malaysia (typically a Sdn. Bhd.), but must have:

  • At least one local company secretary
  • Registered office in Malaysia
  • Minimum paid-up capital (varies by industry)

It typically takes 5–10 working days, depending on document readiness and MyCoID processing times.

Yes. The process can be completed entirely online via MyCoID 2016 with digital signatures.

CriteriaSdn. Bhd. (Private Limited)Enterprise (Sole Prop / Partnership)
Legal EntitySeparate from ownerNot separate
LiabilityLimitedUnlimited
Tax TreatmentCorporate TaxPersonal Tax
Suitable ForGrowing businessesSmall-scale operations

DIY vs. Professional Incorporation: What’s Right for You?

CriteriaDIY RegistrationProfessional Service (e.g., ShineWing)
Processing Time7–10 working days3–5 working days
Risk of RejectionHigherLower
GuidanceSelf-helpExpert consultation
Additional SupportNoneTax, audit, and post-incorp advisory
Estimated CostRM 1,200–RM 1,500RM 1,800–RM 3,500

Want peace of mind? Let our company secretarial team handle the process for you.

a senior citizen is signing a document

In a Nutshell

You will receive a Notice of Registration after 1 or 2 days that will show that your company has been approved by the SSM.

However, if your application is rejected, or if you have any trouble with company registration, you can always contact professional accounting services in Malaysia to help you out and get through the company incorporation process.

For more information, feel free to get in touch with us.

Let ShineWing Handle Your SSM Incorporation

Starting a business is stressful—SSM registration shouldn’t be.

 

  • Expert guidance from qualified professionals

  • Fast-tracked document prep & name search

  • End-to-end support including secretary appointment

 

Book a free consultation today to get started.

Contact Us Now

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How Does Transfer Pricing Help With Malaysia’s Economy?

graph and chart

How Does Transfer Pricing Help With Malaysia's Economy?

Transfer pricing represents pricing the transfer of goods and services between related parties. Related parties mean the entities or organizations that have equity control over each other. In such a case, one entity should be having more than 50% direct and indirect shareholdings control over the other party.


Generally, the transfer price should not be different from the current market price at the time of the transaction between independent individuals. This price is known as the arm’s length price. In most countries, the arm’s length price is decided by a regulatory body to ensure fairness and transparency. The Inland Revenue Board (IRB) is responsible for ensuring that the transfer pricing in Malaysia is smooth for the related price. Hence, the arm’s length principle is enforced by the IRB.


There are many different aspects of transfer pricing and transfer pricing documentation that affects companies in different ways. For instance, many companies do not realize that Malaysia is a unique country in which transfer pricing is applicable to cross-border and domestic transactions. Therefore, companies dealing with domestic party transactions should also be familiar with the rules and regulations of transfer pricing.


In this article, you will learn the effects of transfer pricing on your business and how it impacts Malaysia’s economy.

What is Transfer Pricing Documentation

According to the law, Malaysian taxpayers have to prepare transfer pricing documentation on an annual basis and follow the Malaysian Transfer Pricing Guidelines. A taxpayer must prepare transfer pricing documentation on every controlled transaction or at least when the company is filing its tax return.

 

The Guidelines also state that taxpayers have to prepare a thorough transfer pricing documentation:

  • If their gross income is more than RM25 million
  • If the total amount of the related party transaction is more than RM15 million
  • If the entity has received financial assistance of more than RM50 million

 

On the other hand, companies outside these requirements can use simple transfer pricing documentation in which the analysis of the organization structure, controlled transactions, and pricing policies are required.

business chart reported in tablet and paper

Country by Country (CbC) Reporting and Master File

CbC and Master File are applicable to multinational companies with overall revenue of more than RM 3 billion in the preceding financial year. Moreover, such companies should meet the following requirements:
  • Enterprises must have consolidated financial statements.
  • Multinational companies should have more than two related entities that are defined by ownership or control.
Such organizations will have to prepare the Master file and submit it along with the transfer pricing documentation in Malaysia. It is important to note that multinational enterprises with a group revenue of less than RM 3 billion are not affected by Master File. However, they comply with the normal requirements of transfer pricing documentation.

Due Date of Transfer Pricing Documentation

When a company submits Form C (Company Tax Return Form) in Malaysia, the form has the option of whether the taxpayer has maintained transfer pricing documentation in that particular year. Therefore, for timely submission, it is important that the companies prepare the required documentation by the time the tax return is filed so that Form C of the Company Tax Return is supported by this essential document.

 

However, it is important to note that taxpayers not subject to CbC and Master File must prepare the standard transfer pricing documentation, but they do not have to necessarily lodge the document. Instead, the document must be maintained and provided within 30 days of the request by the IRB.

businessman is calling in office

Impact on Economy

Transfer pricing in Malaysia certainly has a positive impact on the economy. The Malaysian Budget 2021 has made a number of changes in tax legislation, along with making strict rules for transfer pricing-related penalties.

 

It has become more important than ever because, due to globalization, more and more companies are getting involved in intra-group transactions.

 

Hence, transfer pricing documentation ensures that companies in Malaysia comply with the arm’s length nature of the transactions, and penalties are applied if the company is not complying with the rules and regulations.

 

As a result, tax authorities can collect more tax and prevent tax evasion.

In a Nutshell

The bottom line is that transfer pricing is a highly useful concept in modern, globalized economies, like Malaysia’s economy. It has a positive impact on the economy as transfer pricing documentation is used to ensure maximum compliance.


For more information, feel free to get in touch with us.