The World Bank’s Doing Business in 2009 has ranked Malaysia the 20th easiest place in the world (181 economies) to do business.

Specific rankings in terms of ease include:
Starting a business (75th)
Dealing with construction permits (104th)
Employing workers (48th)
Registering property (81st)
Getting credit (1st)
Protecting investors (4th)
Paying taxes (21st)
Trading across borders (29th)
Enforcing contracts (59th)
Closing a business (54th)

Malaysia was ranked as the 47th most corruption-free nation among 180 nations in 2008 according to Transparency International.

The main business structures used by foreigners investing in Malaysia are:

• limited company (either public or private).
  
• local branch of a foreign company.
  
• joint venture.
  
• partnerships.

Among foreign investors, the limited company is the most popular form. The procedures for establishing a company in Malaysia present no particular problems.

The main requirements for the incorporation of a company are:

• obtaining approval of a name by the Companies Commission of Malaysia (CCM).
• having at least two directors (promoters) whose principal or only place of residence is in Malaysia.
• having two or more shareholders who are initial subscribers to the Memorandum of Association.
• having a registered office in Malaysia.
• having a minimum authorised share capital of RM100,000.

Companies must also appoint a company secretary who must be a member of an approved professional body or licensed by CCM.

Branches may be established in the same way as companies, except that prior approval is required from the Ministry of International Trade and Industry.

The Government is often reluctant to approve branch registration unless the company has been invited to participate in a government project. Establishing a branch rather than a corporation has the advantage of retaining control.

New Zealand companies deciding to joint venture with or take equity in a local company need to be aware of the various regulations and incentives that apply.

The Malaysian Government welcomes foreign investment in the manufacturing sector, especially on a joint-venture basis. The equity policy for the manufacturing sector was liberalised in 1998 and foreign investors can now hold 100 percent equity irrespective of the level of exports. This does not apply to activities such as paper packaging, plastic packaging, plastic injection moulding components, metal stamping, metal fabrication and electroplating, wire harness, printing, and steel service centres.

Formal partnership deeds may be drawn up governing the rights and obligations of each partner but this is not obligatory.

All sole proprietorships and partnerships must be registered with the Companies Commission of Malaysia. Only Malaysia residents, or foreigners who are permanent residents in Malaysia, may register a partnership

(Additional sources used on this page: RSM Robert Teo, Kuan & Co, Deloitte Touche Tohmatsu)