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setting up of A R&D company in Malaysia


setting up of A R&D company in Malaysia


Setting Up an R&D Company in Malaysia: A Comprehensive Guide

Malaysia has emerged as a promising destination for R&D companies, offering a conducive business environment, a skilled workforce, and attractive incentives. This guide will provide an overview of the key steps involved in establishing an R&D company in Malaysia.

Understanding the R&D Landscape in Malaysia

Before diving into the setup process, it's essential to understand the R&D ecosystem in Malaysia:

  • Government Support: The Malaysian government actively promotes R&D through various incentives and initiatives.

  • Talent Pool: Malaysia boasts a pool of skilled graduates in science,

     technology, engineering, and mathematics (STEM).

  • Infrastructure: The country offers world-class research facilities and infrastructure.

  • Strategic Location: Malaysia's strategic location in Southeast Asia provides access to a vast market.

Key Steps to Setting Up an R&D Company in Malaysia

  1. Conduct Market Research and Feasibility Study:

    • Identify your target market and competition.

    • Assess the potential demand for your R&D services.

    • Evaluate the availability of skilled talent and resources.

    • Conduct a financial feasibility study.

  2. Choose the Right Business Structure:

    • Private Limited Company: Most common choice for foreign investors.

    • Sdn Bhd: Local company structure.

    • Labuan International Company (LIC): For specific tax advantages.

  3. Register Your Company:

    • Register with the Companies Commission of Malaysia (CCM).

    • Obtain necessary licenses and permits.

    • Comply with local regulations and standards.

  4. Secure Funding:

    • Develop a comprehensive business plan.

    • Explore funding options, including government grants, venture capital, and loans.

  5. Build Your Team:

    • Hire skilled researchers, scientists, and engineers.

    • Consider partnerships with local universities or research institutions.

  6. Establish R&D Facilities:

    • Secure appropriate laboratory or office space.

    • Equip your facilities with necessary equipment and technology.

  7. Apply for Incentives and Grants:

    • Research available R&D incentives and grants.

    • Prepare and submit applications.

    • Comply with eligibility criteria and reporting requirements.

Key Incentives for R&D Companies in Malaysia

  • R&D Status: Provides tax incentives and benefits.

  • Pioneer Status: Offers full tax exemption for a specific period.

  • Investment Tax Allowance (ITA): Allows for tax deductions on qualifying capital expenditure.

  • Grants and Financial Assistance: Available from government agencies and research institutions.

Important Considerations

  • Intellectual Property (IP) Protection: Safeguard your R&D outcomes through patents, trademarks, and copyrights.

  • Data Privacy and Security: Implement robust measures to protect sensitive data.

  • Talent Retention: Develop strategies to retain your skilled workforce.

  • Compliance: Adhere to local regulations and industry standards.

Seek Professional Assistance

Setting up an R&D company can be complex. Consider engaging legal, tax, and business consultants to guide you through the process.

Additional Resources:

By carefully planning and leveraging Malaysia's supportive environment, you can establish a successful R&D company and contribute to the country's innovation ecosystem.

Would you like to delve deeper into a specific aspect of setting up an R&D company in Malaysia?


What is the incentive for in house R&D in Malaysia?


Updated Guideline for application of R&D status and tax ...

Updated Guideline for application of research and development (R&D) status and tax incentives for R&D services


Incentive for In-house Research And Development (R&D)

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