3 minutes From India to Malaysia: 10+ Thriving Small Business Ideas to Help Indian Entrepreneurs Grow Internationally
Why Malaysia Is Ideal for Indian Entrepreneurs
Malaysia offers a strategic Southeast Asian location, competitive tax rates, a large domestic market, and access to regional markets like Singapore and Indonesia. With digital transformation, government incentives, and welcoming policies toward foreign investment, Malaysia is a prime destination for Indian entrepreneurs aiming to expand internationally.
10+ Thriving Small Business Ideas in Malaysia
Business Idea | Description |
E-commerce | Selling products on platforms like Shopee, Lazada, Zalora . |
AI & Digital Services | Developing AI tools, chatbots, or digital marketing consultancy . |
On-demand Delivery Services | Grocery or food delivery services, partnering with local apps like Grab . |
Rental/EV Charging Services | Establishing electric vehicle rentals and charging stations . |
Tourism Ventures | Building resorts, hotels, or niche tourism offerings . |
Restaurants & Food Trucks | Opening multicultural restaurants or mobile food trucks . |
Electronics Repair | Repairing phones, laptops, and home appliances . |
Pet Care Services | Providing pet sitting, grooming, and related care . |
Affiliate Marketing | Promoting products online for commissions . |
Freelance Services | Offering writing, design, consulting, or digital production . |
Event Planning | Organizing weddings, parties, or corporate events . |
Printing Services | Producing print products for apparel, mugs, and marketing . |
Babysitting & Child Care | Running home-based or community childcare centers . |
Laundry Services | Providing pick-up and delivery laundry for busy customers . |
Eligibility & Requirements for Indian Business Owners
Legal Entity Options
- Private Limited Company (Sdn. Bhd.): Allows 100% foreign ownership, requiring at least one Malaysian resident director. Certain sectors require partial local ownership.
- Limited Liability Partnership (LLP): Requires at least two partners and a Malaysian compliance officer.
- Branch Office or Representative Office: Limited to specific activities and require resident agents.
Company Registration Steps
- Business name approval by Companies Commission of Malaysia (SSM).
- Submission of required documents including passports, business plans, and constitutional documents.
- Obtaining relevant licenses depending on the industry.
- Tax registration with Malaysia’s Inland Revenue Board (LHDN).
Capital, Tax & Licensing
- Minimum paid-up capital generally RM1; some sectors require higher capital.
- Corporate tax rate for SMEs is 17% on first RM600,000 profit; standard rate is 24%.
- Sales and Service Tax (SST) varies from 5% to 10%.
- Sector-specific licenses for F&B, tourism, and others may be required.
Visa & Immigration
- Malaysia Tech Entrepreneur Program (MTEP) offers professional and residence passes to tech entrepreneurs.
- Employment passes for directors require company establishment and capital evidence.
- Local country manager option for those not relocating immediately.
Tax and Compliance Obligations for Foreign Companies
Foreign-registered companies in Malaysia must adhere to corporate tax, SST, withholding tax, and reporting obligations:
- Corporate tax applies on Malaysian-sourced income at standard rates, with SME breaks.
- SST registration is mandatory if taxable sales/services exceed RM500,000.
- Annual returns must be filed with SSM every year.
- Audited financial statements and corporate tax returns must be submitted within prescribed timelines.
- Appointment of a company secretary and resident agent is mandatory.
- Penalties apply for late or incomplete filings.
Withholding Taxes on Payments to Foreign Contractors
Payments to foreign contractors in Malaysia are subject to withholding tax, which depends on the nature of the payment:
- 13% total withholding for non-resident contractor payments (10% on services and 3% on related employee costs).
- 10% withholding on technical or management service fees.
- 15% withholding on interest paid to non-residents.
- 10% withholding on royalties and rental payments for movable property.
- 15% withholding for non-resident public entertainers.
- Withholding tax must be deducted at source and remitted to Malaysia’s tax authorities timely.
- Double Tax Agreements may reduce withholding tax rates with proper documentation.
Premia TNC Support for Indian Entrepreneurs
Premia TNC assists Indian entrepreneurs with Malaysia business incorporation, compliance adherence, tax structuring, and visa processing to ensure seamless market entry and growth.
Malaysia’s vibrant market, favorable tax system, and strong regulatory framework combined with these practical business ideas and compliance guidance equip Indian entrepreneurs to successfully expand and thrive internationally
