Company Incorporation In Singapore Versus Company Incorporation In Malaysia

Ask a budding entrepreneur which South Asian country they would like to incorporate their company, and the most probable answers would be Singapore, Hong Kong and Malaysia. While the World Bank has rated Singapore as the best country in the world for the “ease of doing Business”, Malaysia is known for its newly industrialised market economy. It is among the world’s top 40 market economies. Incorporating a business in countries with such strong trade routes, business-friendly regulatory environments and infrastructure can give a boost to any business career. 

Company Formation in Singapore and Malaysia

Since the norms of the Republic of Singapore are very supportive of small businesses, Singapore is lauded all over the world as a safe takeoff spot for startups. Similarly, a company incorporated with the Companies Commission of Malaysia (SSM) will be bestowed with repute. While the rules of company formation in Singapore are slightly more stringent as compared to the rules of company formation in Malaysia it should not deter a new company from getting started on the incorporation process.  

Benefits of incorporating a company in Singapore vs Malaysia

Dividends: Being one of the countries where dividends are tax-free, both Malaysia and Singapore are lucrative options for investors.  

Corporate Income tax: The corporate income tax in Singapore ranges from 0% to 16% and after company formation in Singapore, he/she is exempted from 75%, 50% and 25 % of the payable tax for the first, second and third year of incorporation respectively. Moreover, Singaporean companies with a profit of 100,000 SND have been exempted from tax payments making Singapore an inviting option for small firms and startups seeking incorporation. 

The corporate income tax in Malaysia ranges from 17% to 30% and a plethora of industry-specific tax incentives, exemption policies, grants and funding sponsored by the government make Malaysia a lucrative option for business registration.  

Ease of company incorporation: Though both countries have a start-up-friendly environment, getting a company incorporated in Singapore hardly takes a few hours if your documentation and everything is right. The company formation process in Malaysia takes close to a fortnight. It is best to rely on professional help for incorporation in Malaysia. 

Cost of labour: While on a lot of parameters company formation in Singapore may seem like the best choice, when it comes to the cost of labour, Malaysia is more profitable. 

Ease of renting/leasing an office premise: Singapore’s open migration policy and Malaysia's warm tourist-centric approach make it relatively easy for non-natives to get an office premise on rest in both of these countries. 

Company Incorporation in Singapore: 

Company incorporation in Singapore for non-natives gets a little tedious because of the multiple steps. The entire registration process is online and listed below are the steps that one must adhere to:

1. Hiring a local director who is either a citizen of Singapore or an individual with a valid employment visa.
2. Incorporating the company against a local address.
3. Hiring a company secretary and a registered agent along with one person who can be declared as the shareholder of the company.
4. Filing a name application with the Accounting and Corporate Regulatory Authority of Singapore since all companies in Singapore are registered with ACRA.
5. Even after all the relevant documents are submitted and all the documents are verified closely, it takes about two weeks for the company registration procedure to get started. 

The Director service and annual retainer fee for the documentation process can range anywhere from 3,000$ to 6000$. 

Company Incorporation in Malaysia:

The first step to incorporation in Malaysia is deciding the company structure, whether you want to list as a public limited company or a private limited company. One has to take a call before beginning the registration process. Both kinds of company incorporation procedures in Malaysia are very lucid. The basic steps include: 

• Fill out the Business Registration Form with details of the business name, address of the business, information of the owners and partners, and the type of business carried out.
• The application can be submitted online on the SSM website.
• Other documents that you need to submit include a photocopy of your ID, permits, license or supporting letters for the type of business. 
• Once you pay the fees, your application will be reviewed and SSM will give you the certificate of incorporation in Malaysia. 

The entire process right from finding the business name to incorporation can take 8-10 days. But with help of experts, it can get easier and quicker. 

Trust PikoHANA for Incorporation Services

With an exhaustive list of documents and procedural order, the incorporation process can squeeze out the joy of expansion, from small businesses or even the big players. But having an experienced team of professionals to guide the entire procedure can make the process error-free and quick. PikoHANA is one such expert with a dedicated team that has a vast experience in company incorporation in Malaysia, Singapore and Hongkong. Give them a call or check out their website for affordable incorporation processes as well as accounting outsourcing.