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Malaysia Foreign Company Registration-Formation
Our guide line will help you detailed indication of new company registration / incorporation requirements, cost, time frame, process for registering a private limited company in Malaysia and information of how to register/ incorporate a company in Malaysia for foreigner?
Malaysia Foreign Company Registration-Formation, incorporation
Our information of Malaysia foreign company registration-formation will help to take decision of registering new company:
- Ensure institution Name , a place what shall be used correspondence, MOA, Papers those are attested by the person of government endorsed, license for starting, and others those required permissions including VAT to doing foreign trading;
- 2 (two) directors and 2 (two) share holders are required to create new business and at most 50 (fifty) share holders are allowed for holding shares of the company;
- It is said that local directors need to be appointed who are residing of Malaysian to meet with requirement of Malaysian foreign company registration-formation guide line. To solve a simple but complex problem come picture of hiring local directors to register/ incorporate a new company in Malaysia for foreigner;
- Without opening an account with bank jobs remain incomplete after completion of incorporation process;
- Exempted tax those institutions are built up inside of freely trading zone;
- Lowest split value of RM 500,000 or the same of international currency for full overseas enterprise;
- Each organization have some administration job to handle by professional people like secretary to make them facilitate towards mission of industry;
- Lowest share value of RM 350,000 (RM three hundred and fifty thousand) to create Joint Venturing enterprise;
- Tax applied on products and services but in general income Tax rate is 26 per cent;
- An overseas person government welcome starting new investment in positive sectors containing ownership;
- Top management persons are given work permit and different term visa on condition of completion right rules application;
- Government fees vary upon amount of authorized capital but no charges on paid up amount as guideline of Malaysia foreign company registration- formation;
- Directors visa and work permit for Sdn Bhd enterprise cost is Ringgit half (1/2) million in Malaysia foreign company registration-formation setup as policy;
Income tax is not applicable if Malaysia foreign company registration- formation does not meet with profit.
- But the employees shall pay taxation and doing so registration with Inland Revenue board should ensure;
- Filing up prescribe forms, MOA preparation as form 48A, form 13A to proceed in Malaysia foreign company registration-formation as a new company.
- Sdn Bhd meaning is Sendirian Berhad that is called private limited company in Malaysia that is registered/ incorporated from SSM;
- Proprietorship and partnership company registration in Malaysia is not allowed by foreigners. Opening a bank account is not easier as foreigner;
- Company secretary shall be preceding registration documents to authority board;
Employees salary is started RM 4500 to above. More than 2 millions foreign workforce are working in Malaysia as official record recently;
Duration: one to two weeks may take time to complete entire process to set up own share holding company in Malaysia;
Steps of new company registration process in Malaysia
Why focus in Malaysia for investment now days? Malaysia, approximately is foreign investment US$ 26,904,012 of 2015-2016 that is much higher than many Asian counties. Tourist visits in Malaysia every year around 11,316,994,810 plus (-). The reason of focusing the points are why foreign investors planning to register a company in Malaysia?
As investors he will collect information about law and new company registration process in Malaysia as foreigner. Entrepreneur can contact the consultant or company secretary for a guide line. Name approval of the new company is an important part in Malaysia. Though exact name approval is not easier because lots of companies are registered everyday from different country. Therefore 3 or four name can be selected as primary job of incorporation the company. Besides, prescribe forms have to fill up and put sign by the directors, namely Form 48 A, MoA and AoA, form 44, form 49 and form 24. Notary public is must of form 48 A from the origin country of promoters. Company secretary shall complete all process of new company incorporation after getting all required papers duly. It may take 10 days to complete new company incorporation process in Malaysia except days of company name approval. For the small and medium companies can choice virtual office considering cost of running business as Malaysia foreign company registration-formation process.
As business direction of Malaysia foreign company registration-formation you are requested to apply for Income tax certificate within seven months of registering/ incorporating new company in Malaysia and within 3 (three) months of first selling a new company shall obtain income tax certificate from revenue office of Malaysia.
Branch Office open in Malaysia
As our guide lines of Malaysia foreign company registration-formation investors will find necessary information to setup branch/ representative office:-
- Various official papers of the head firm should be prepared with attested by embassy;
- Meeting decision from sponsors ;
- Power given a human who shall proceed taking liabilities in favor of mother organization;
- About more a month (4 weeks ) might needful to complete registration process;
- It needs time a longer time because of going permission though many government body; Ten weeks to twelve weeks;
|Questions||Answers relating of Malaysia foreign company registration-formation|
|How many directors are required?||There are two directors require to register a new company as law of Malaysia.|
|Is it allowed to register a company without investor visa?||Yes. Allow. Without investor visa share holders or directors can run business.|
|Is 100 present foreign ownership is allowed in Malaysia?||Yes. Allow. As Malaysia foreign company registration-formation process foreign investors can hold 100 percent ownership.|
|Local nominee directorship is required to register/ incorporate a new company?||No. As guideline of Malaysia foreign company registration-formation procedure without local residing nominee director foreign investor can incorporate business in Malaysia.|
|Which banks are preferred to open corporate account in Malaysia as foreigner?||OCBC Bank & Standard Chartered Bank|
|How can I open bank account as Malaysia foreign company registration-formation?||It’s difficult if your paid up capital is below of RM 500,000 and if you are NOT professional visa holder. We recommend the investors and guide to process account opening that increase possibility of successful.|
|How much should invest for joint venture company?||If you register a private limited company with local, Malaysian partner you will require paid up capital of RM 350,000 instead of RM 500,000.|
Fees of new company registration in Malaysia
|Category||Consultancy fees||Type of company|
|A||RM 5000 (fees for new company registration in Malaysia)||For small size company those are service or general trading company|
|B||RM 10000 (As Malaysia foreign company registration-formation fees)||For medium size company: import export company|
|C||RM 15000 plus for new company incorporation in Malaysia||For large size company: Manufacture company|
Government fees of registering and incorporating new company in Malaysia and our guide line of Malaysia foreign company registration-formation are as follows:-
Company Act 1965, Division 1, key sections are discussed for Incorporation of new company and our writing topic as Malaysia foreign company registration-formation:
|Section 14.||Formation of companies.||(1) Two or more persons are eligible to incorporate a new company.
(2) Company may be as the following category— (a) a company limited by shares; (b) a company limited by guarantee that is not shares; (c) a company can be limited both by shares and guarantee; or (d) another one is an unlimited company.
|Section 15||Private company||(1) (a) restricts the right to transfer its shares in case of private limited company in Malaysia;
(b) Members limitation up to fifty (50) maximum.
(c) Public subscription is restricted being private limited company
|Section 16||Registration and incorporation||Certificate of incorporation
(4) The registrar shall certify with seal that is—(a) a company limited by shares;
(b) a corporation limited by guarantee that is not share;
(c) a company can be incorporated as limited both by shares and guarantee; or
(d) another one is an unlimited company.
|Section 17||Membership of holding company||(1) A firm cannot be an associate of a company which is its holding company shall be canceled|
|Section 18||Requirements as to memorandum||(1) There shall be written name, objective, shares, name of directors, auditor, first secretary and others.|
|Section 54||Return as to allotments||Where a company shall allot shares to the directors with value of each shares|
|Section 124||Qualification of director||A number of shares that shall be purchased by the share holders as mentioning number of Article of Association.
Penalty: In case of failure One thousand RM shall be penalized as Default penalty.
|Section 143||Annual general meeting||Each after 15 months company shall hold a meeting with presence of the directors is called AGM, provided that twenty one month’s may consider in case of first AGM|
|Section 152||Special resolutions||A meeting resolution is passed by the ¾ majority voting is called Special resolution|
|Section 165||Annual return submission by corporation in favor of a share money||Return should be part II English Schedule of every company.
Penalty: Two thousand ringgit. Default penalty
|Section 217||Application of winding up||Every company can petition by court for winding up the company|
Note: Contact us to rent virtual/ small office with low cost in Malaysia.
You may find other writing apart of Malaysia foreign company registration-formation as below:-
- You may know in more detail procedure of company registration in Malaysia
- Do you need business license in Malaysia?
- Our small business ideas in Malaysia will help to start new business.
- Click here to know advantage of setting up business in Malaysia.
- Find information problems of starting a business in Malaysia.
- Different types of business plan in Malaysia have been discussed.
- Although Malaysia is a peaceful country yet some problems to live in Malaysia.
- We have discussed different types of visa in Malaysia.
- Click here to know information relating Income Tax filing Malaysia
- How to start a business in Malaysia as foreigner, look the video.
SFM CONSULTING FIRM SDN BHD a sister concern of S & F CONSULTING FIRM LIMITED
Jalan Tun Mohd Fuad, Taman Tun Dr. Ismail
Kuala Lumpur, Malaysia