Doing Business in the United Kingdom VS Malaysia – A Comparison
Entrepreneurs comparing the United Kingdom and Malaysia often weigh global connectivity against cost-efficiency and regional growth. Both countries offer attractive business environments, but they cater to different strategies. Your choice depends on your market, budget, and expansion goals.
3E Accounting highlights the United Kingdom’s strengths in legal transparency, fast digital incorporation, and access to international markets. Malaysia, meanwhile, is known for its cost advantages, government support for small businesses, and regional access within ASEAN.
The United Kingdom: Offers a transparent legal system, stable governance, and high investor confidence across industries.
Malaysia: Pro-business policies, a multilingual workforce, and government initiatives like tax exemptions and SME funding, though bureaucracy still affects some sectors.
Taxation
The United Kingdom: Corporate tax rate is 25%, with incentives for R&D and reliefs for small businesses. Capital gains are taxed depending on the asset and holding period.
Malaysia: Corporate tax is 24% for resident companies, 17% for SMEs under certain thresholds. Capital gains are generally not taxed, except for real property gains.
Malaysia: Incorporation is straightforward through SSM, usually completed within 1–3 working days, but still involves manual verification and approvals.
Cost of Living and Business Operations
The United Kingdom: Operational costs vary by region. Cities outside London offer affordable rent and access to skilled talent.
Malaysia: Low cost of living, affordable office space, and competitive salaries make it attractive for startups and regional offices.
Access to Markets
The United Kingdom: Strong global trade network with access to Europe, Asia, and North America. Logistics and digital infrastructure are advanced.
Malaysia: Strategically located in Southeast Asia with access to ASEAN, China, and India. Free trade agreements provide regional benefits.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
The United Kingdom
Malaysia
Business Environment
Stable, transparent, globally connected
Pro-business, cost-efficient, regionally strong
Corporate Tax Rate
25%
24% (17% for eligible SMEs)
Capital Gains Tax
Applies based on asset and duration
Not taxed (except real property gains)
Ease of Incorporation
Fully online, completed in 1 day
1–3 days, semi-digital with manual approvals
Business Costs
Moderate outside London
Low cost across major cities
Market Access
Global, including Europe and North America
Regional access to ASEAN, China, and India
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
The UK has a fully online process completed in one day. Malaysia’s system takes 1–3 days and involves both digital and manual steps. See this UK company registration guide for reference.
Yes. The UK government offers business finance support such as grants, loans, and tax incentives.
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.