How to start a business in Malaysia - in the most prosperous country in the developing world.
In the ranking of easy doing business of Doing Business 2015 World Bank has secured Malaysia at the18th position. Asian country is among the top 15 countries in the world at the subgrade "Registration of companies".
Malaysia, which was economically considered futile until the middle of the last century, now refers to the echelon of the richest and most developed nations in the developing world. Malaysia is ranked the 20th in the world in global competitiveness rankings and the 31th in the ranking of countries in terms of economic freedom.

Thanks to the economic reforms initiated since 1970, the average income of Malaysians has increased two and a half times in the last fifteen years. The poverty rate has fallen to the global average. Unemployment and inflation are also low, especially when compared with developing countries.
Major industries that hold the country's economy – is the production of rubber and palm oil, light industry, electronics, wood processing and logging, production and refining, agriculture and tourism. The most profitable areas for doing business in Malaysia is considered as tourism, exports of electronics, palm oil, rubber, wood.
Malaysia has signed more than 60 agreements on avoidance of double taxation, but it is applied only to companies that are residents of Malaysia.

The registration procedure:

A foreign company may carry on business in Malaysia by incorporating a local company or a foreign company registration in the Commission by companies of Malaysia (Suruhanjaya Syarikat Malaysia, SSM).
For registration of an individual enterprise, documents are to be submitted to the Commission of Malaysia companies through a single window service or through the e-Lodgement service. You must fill in the registration form of business (Form A). Business can be registered in the personal name of the owner or trademark. The new company must be registered within 30 days of the commencement of business.
Registration of an individual entrepreneur is carried out for a period of one year to five years. The certificate of registration shall be issued within one hour after the payment of the registration fee.
The registration fee of an individual entrepreneur includes the fee for brand (60 MYR or about 13 AZN per year), its own behalf (30 MYR or about 7 AZN per year) and branch (5 Malaysian ringgit, or a little more than 1AZN for each branch). (1 Malaysian ringgit equals to 0.2202 AZN for February 9, 2015).

The registration procedure of a foreign company in Malaysia:

1. The registration of a company name - filling out the form 13A (request to check the availability of the name) in the SSM. Cost of service - 30 Malaysian ringgit (about 7 AZN).
The name of a foreign company registered in Malaysia must match the name of a company registered in the country of origin. Do not use of the following words in company name "Federal", "State", "National", "Chartered", "International", "Association", "Trust", "Union", "Royal", "Credit", "Bank", "Banking" and some others, indicating the activity for which you are required to obtain a license or permit.

2. Submission of documents for registration. The registration documents must be submitted to the SSM within three months from the date of approval of the company name. All documents must be completed in English or Malaysian languages.
List of registration documents that must be submitted to the SSM for registration of the company includes the following documents:
- A certified copy of the registration certificate of a foreign company;
- A certified copy of the charter, statute, memorandum or other document defining the legal status of a legal entity;
- Form 79 (details of directors and changes in individual sections);
- Memorandum on the appointment of a resident of Malaysia that is authorized to receive on behalf of any notice that is addressed to him;
- Form 80 (officially sworn statement agent of a foreign company);
- Additional documents - the original form 13A, a copy of a letter from SSM on registration of the name of a foreign company.

The registration fee depends on the nominal share capital. If the company does not set the size of the share capital, the SSM is to be paid a fixed rate of 1,000 ringgit (slightly more than 220 AZN).

Business forms

Sole proprietorship (Milik Tunggal). Individual entrepreneur conducts business under own name or trade name. Entrepreneur is fully liable for the obligations of the company. Only a citizen or a resident of Malaysia, over 18 years has right to register a private company.

Partnership (Perkongsian). The company is owned by two or more persons. The number of partners is limited to 20 people. Personal names of the owners can not be used as a brand name.

Limited Liability Company (Perkongsian Liabiliti Terhad, PLT). Limited Liability Company combines the properties of private companies and ordinary partnerships. More often, this form is elected by startups, small and medium - sized businesses. Responsibility of founders PLT is limited. Any debts and liabilities are assigned to the assets of PLT, but not on its partners.

Limited Liability Company (Sendirian Berhad, SDN BHD). This is the most common form of doing business in Malaysia. The company must have at least two directors and a secretary. The Secretary must be a resident of Malaysia. Directors may be foreigners, provided they have a residential address in Malaysia. The minimum capital of the company is 2 ringgit (0.5 AZN). Malaysian shareholders will be entitled to be natural and legal entities, residents and non-residents of Malaysia. The maximum number of shareholders should not be more than 50, the minimum - at least two. Companies are allowed to sell their shares to the third parties only by the Board of Directors.

Joint Stock Company (Berhad, BHD). Joint-stock company may be registered on the stock exchange in Malaysia and it allows you to freely transfer shares to the third parties. The maximum number of shareholders is not restricted, and the minimum is 7. The minimum capital for the establishment of joint-stock company is 20 million ringgit (about 4.4 million manat). Capital must be fully paid at the time of registration.

Unlimited company (Syarikat Tidak Terhad). The unlimited liability of the company's founders is specified in Memorandum for a company with unlimited liability.
In Malaysia, any legal and physical person is exempted from tax income, if the source of income is in Malaysia or income is the result of activities in Malaysia. The corporate tax rate is 28%.

Malaysia is one of three countries in the Southeast Asia, which have not entered the value-added tax. It is planned that from April 1, 2015ç VAT will replace the sales tax. VAT rate will be set at 6%. Preferential treatment will include specific activities in the field of finance, real estate, education and medicine. At the moment, the overall rate of sales tax is 10% on wine and spirits - 20% for cigarettes - 25%.

Business restrictions
In Malaysia, a foreign company must obtain a license for doing a business in areas such as trade and tourism.

Facts about the country
- World famous companies produce goods in Malaysia, for example, Brooks Brother's, Intel, BMW, Citroen, BASF. Malaysia - is one of the leading exporter of electronics and cars.
- Territory of Labuan, which is part of Malaysia, is known as the offshore center. The entire island - is free trade zone, which are not charged sales tax, surtax, excise duties, export and import duties.
- Malaysia - is a multiethnic country. The local population in the country is only 50%, the rest - is the Chinese, Indians, Filipinos and many other ethnic groups. The population speaks many languages, including different dialects and adverbs. However, all Malaysians, one way or another, understand Malay and English languages.
- In a business environment, the trust and respect between partners is important. To demonstrate the discontent in Malaysia, conventional techniques are used of – to send a mediator instead of your so they can escape the risk of a direct conversation.