Doing Business in India VS Malaysia – A Comparison
Entrepreneurs and investors often face a dilemma when choosing between India and Malaysia as their preferred business destination. Both countries offer unique opportunities and challenges, making the decision a strategic one. India is known for its competitive business landscape, lower costs for small businesses, and high quality of life, while Malaysia stands out for its political stability, ease of doing business, and strong trade connectivity.
Key Comparison Points
Business Environment
- India: India’s business environment is dynamic, supported by government initiatives like “Make In India” and a growing startup ecosystem.
- Malaysia: Malaysia offers a politically stable environment with strong government support for foreign investors through policies like the Malaysia Investment Development Authority (MIDA).
Taxation
- India: India’s corporate tax rate is 22% for most companies and 15% for new manufacturing companies, with various tax incentives for startups.
- Malaysia: Malaysia’s corporate tax rate is 24%, with additional tax incentives for specific industries such as manufacturing and technology.
Ease of Company Incorporation
- India: India has streamlined its incorporation process with digital platforms like MCA21, making it easier to register a business.
- Malaysia: Malaysia’s incorporation process is straightforward, supported by the Companies Commission of Malaysia (SSM) and online registration systems.
Cost of Living and Business Operations
- India: India offers lower operational costs, affordable office spaces, and a cost-effective workforce, making it ideal for small businesses.
- Malaysia: Malaysia has higher operational costs compared to India, but offers modern infrastructure and a higher standard of living.
Access to Markets
- India: India’s large domestic market and trade agreements with ASEAN countries make it a key player in the global economy.
- Malaysia: Malaysia is strategically located in Southeast Asia and has strong trade agreements, including being part of the CPTPP and RCEP.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
India |
Malaysia |
Business Environment |
Dynamic with government initiatives |
Stable with strong government support |
Corporate Tax Rate |
22% (15% for new manufacturing) |
24% |
Capital Gains Tax |
Varies based on asset type |
Exempt for most categories |
Ease of Incorporation |
Streamlined digital process |
Straightforward with SSM |
Business Costs |
Low operational costs |
Higher operational costs |
Market Access |
Large domestic market, ASEAN agreements |
Strategic location, CPTPP and RCEP |

Benefits of Choosing 3E Accounting
When navigating the complexities of doing business in India or Malaysia, partnering with a reliable corporate service provider like 3E Accounting can make all the difference. With expertise in starting a business in India, a step-by-step guide to India company registration, and India company incorporation, 3E Accounting ensures a seamless setup process tailored to your needs. For company setup or any other assistance, feel free to contact us. Choose 3E Accounting for a hassle-free experience and focus on growing your business with confidence.
Ready to Expand into India? Choose 3E Accounting Today!
Stay Secure, Stay Successful With 3E Accounting Services
Contact Us Now
Frequently Asked Questions
India offers a dynamic business environment with government support through initiatives like “Make in India”, lower operational costs, and a large domestic market. For entrepreneurs interested in starting a business in India, these advantages make it a compelling choice.
You can follow a structured process for India company registration, which has been made efficient through digital platforms like MCA21. 3E Accounting provides a detailed guide and support throughout the process.
Yes, India offers a corporate tax rate of 22% for most companies and 15% for new manufacturing companies, compared to Malaysia’s 24%. There are also multiple tax incentives available for startups in India.
India generally has lower operational costs, affordable office spaces, and cost-effective manpower, making it ideal for small to mid-size businesses compared to the higher operational costs in Malaysia.
India boasts a massive domestic market with growing demand across sectors and has favorable trade ties with ASEAN countries. If you’re considering setting up businesses in India, this wide market access can be a huge advantage.
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.