India VS Malaysia: Which Country Should You Open Your Business?
India and Malaysia are countries rooted in business innovations. Both countries encourage new and innovative start-ups. With a worldwide purpose of providing support to Small and Medium Scale Enterprises ( SMEs), both countries acknowledge that start-ups serve an important role in their respective economy. Such a concept is the reason why most investors are setting up their business in India and Malaysia. But which is better for doing business? To help you decide, continue reading the points below. These explanations will help you understand business cultures in India VS Malaysia.
Corporate Tax Rates
One of the first things a business owner should check before setting up a business is the corporate tax rate. In comparing India VS Malaysia, India has lower corporate tax rates. These rates are applicable for businesses registered within the region. Businesses that do not demand any privileges or bonuses have a reduced rate of 22%.
On the other hand, in Malaysia, corporate tax rates are a bit high. It is around 24% and one of the highest tax rates in Asia.
Getting a Business License
In reviewing business-friendly assets of a country, what comes next to taxes are business licenses. In India, passport holders from 160 partner countries can secure a business license online. The registration process is fully automated. This implies that foreign business owners need not personally go to an embassy or consul office. Also, upon approval, the issuance of the Indian Business License to the client is through email.
Whereas, you could fall into a trap between having a bank account or getting a business license in Malaysia. As a foreigner investing in the country, you cannot secure a business license until you have opened a bank account. On top of that, the Malaysian embassy asks for proof of deposits in the business’s name to grant your business license.
Corruption and Bureaucratic System
In the same manner, you could face issues on corruption and bureaucracy while starting your business in Malaysia. Thus, several predetermined measurements must be done to prevent such unpleasant business outcomes.
As opposed to these issues in Malaysia, the Indian government offers business-friendly reforms. Specifically, through the Startup India campaign, the government revamped tax exemptions, copyright amendments, and development policies. All these improvements are on top of the government’s efforts in decreasing red tape for new businesses.
Differences in Race and Culture
Understanding the culture, fundamental values, and beliefs and how it can influence the working environment is essential for a business to succeed. As a cultural hotbed, India is a multi-racial country. Indians speak multiple languages and have distinct cultures from North to South. These relations bound by culture is what business people root for in India.
While doing business in Malaysia, you might face race or culture clashes. Malaysia is strict and conventional with its religious beliefs and socio-cultural traditions.
Start by Working With High-end Business Partners
A business is less likely to succeed on its own if highly competitive business partners must support it. 3E Accounting is one good business partner you can work with. The company is essentially a champion for what it does. We are your one-stop-shop for all your business needs.
Lastly, India provides start-ups with a helping environment. So, the earlier you start, the sooner your business becomes the next big thing. Contact us, and let’s get your business in India started.
