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Doing Business in Malaysia VS Lithuania – A Comparison
Entrepreneurs aiming to expand in Asia or Europe often find themselves torn between two very different but equally attractive markets: Malaysia and Lithuania. Each country offers unique advantages—from low startup costs to digital efficiency—making the choice a real dilemma for global investors.
Malaysia is ideal for those starting a business in Malaysia due to its affordability, skilled workforce, and central ASEAN location. Lithuania, by contrast, is a fast-growing EU tech hub known for digital innovation and startup support. Below, we compare both countries in detail so you can choose based on your priorities.
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Key Comparison Points
Business Environment
- Malaysia: Political stability, strong legal frameworks, and active government support through MIDA and the Companies Commission of Malaysia (SSM) make Malaysia a top choice in Southeast Asia.
- Lithuania: A member of the EU and Eurozone with strong institutions and a highly digitalized public sector, Lithuania ranks well for ease of doing business and low bureaucracy.
Taxation
- Malaysia: The corporate tax rate is 24%, but small and medium enterprises enjoy reduced rates and exemptions. No capital gains tax applies to most asset disposals. More details are available under our services.
- Lithuania: The corporate tax rate is 15%, one of the lowest in the EU. Capital gains are taxed as part of corporate income, but startups may access tax reliefs and innovation grants.
Ease of Company Incorporation
- Malaysia: With online registration through the SSM and fast approvals, the process is quick. For a seamless setup, consider company incorporation in Malaysia with local experts like 3E Accounting.
- Lithuania: Company formation is simple, especially for EU residents. Most steps are digital, and non-EU residents can still register through legal agents or e-Residency-like processes.
Cost of Living and Business Operations
- Malaysia: One of the most cost-efficient places in Asia. Office rent, salaries, and utilities are low. Many startups benefit from using affordable company incorporation services.
- Lithuania: Lower cost of living than Western Europe, though still higher than Malaysia. Office rent in Vilnius is reasonable, and tech labor is affordable compared to other EU capitals.
Access to Markets
- Malaysia: Strategically located in the heart of ASEAN, with access to 650 million consumers. It’s a smart launchpad for anyone setting up businesses in Malaysia aiming for regional growth.
- Lithuania: EU and Schengen access, close ties to Nordic and Eastern European markets, plus digital infrastructure that appeals to startups targeting the European market.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
| Factor | Malaysia | Lithuania |
|---|---|---|
| Business Environment | Stable, supportive government, investor-friendly | EU member, digitally advanced, startup-friendly |
| Corporate Tax Rate | 24% | 15% |
| Capital Gains Tax | No | Yes (included in corporate income) |
| Ease of Incorporation | Online, 1–3 days via SSM | Fully digital, quick for EU residents |
| Business Costs | Low operating and living costs | Moderate by EU standards |
| Market Access | ASEAN, CPTPP, RCEP | EU, Nordic, and Eastern Europe |
Benefits of Choosing 3E Accounting
Selecting the right partner is crucial when it comes to starting a business in Malaysia. At 3E Accounting, we offer a comprehensive range of solutions designed to simplify the entire process of company incorporation in Malaysia. From ensuring compliance with local regulations to providing expert guidance tailored to your specific needs, we make the journey seamless.
For entrepreneurs looking to navigate Malaysia company registration or explore company setup in Malaysia, our team provides unmatched expertise and support. Additionally, our company incorporation services are tailored to help you succeed in the competitive business environment.
With a deep understanding of the region’s business landscape, we also provide resources for setting up businesses in Malaysia, ensuring that every step is clear and efficient. Whether you need assistance with corporate secretarial or company secretary services, we are here to help.
To explore our services or discuss your business needs, contact 3E Accounting. With our strong presence in Malaysia and a proven track record, we are your trusted partner for success in Asia.
Frequently Asked Questions
Why is Malaysia considered a cost-effective business destination?
Answer: Malaysia offers lower startup and operational costs compared to most Asian and European countries. Entrepreneurs starting a business in Malaysia can benefit from affordable office rentals, competitive salaries, and government-backed incentives.
What is the corporate tax rate in Malaysia compared to Lithuania?
Answer: Malaysia has a corporate tax rate of 24%, while Lithuania offers a lower rate of 15%. However, Malaysia provides various exemptions and tax incentives, especially for SMEs. You can explore these in the range of services available to support tax planning.
How do I begin Malaysia company registration as a foreigner?
Answer: The process is digital, fast, and guided by the Companies Commission of Malaysia (SSM). Foreigners can refer to this Malaysia company registration guide to get started smoothly.
What services are available for company incorporation in Malaysia?
Answer: Firms like 3E Accounting offer complete company incorporation in Malaysia packages including name search, document filing, and compliance advisory.
What’s the benefit of using company incorporation services in Malaysia?
Answer: Using professional company incorporation services helps avoid delays, ensures compliance, and offers expert advice on structure, licensing, and taxes.
Is Lithuania better for digital startups than Malaysia?
Answer: Lithuania has strong digital infrastructure and a growing fintech sector. However, Malaysia is increasingly attractive for tech startups, especially for those setting up businesses in Malaysia focused on Southeast Asia’s fast-growing consumer base.
Who should I contact for help with company setup in Malaysia?
Answer: You can contact 3E Accounting for assistance with licensing, setup, registration, and post-incorporation compliance.
What ongoing compliance services are available for Malaysian companies?
Answer: After incorporation, companies can benefit from corporate secretarial and company secretary services to handle filings, resolutions, and statutory requirements.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
