Company registration in Malaysia for foreigner
Company registration in Malaysia for foreigner is not easier in 2019.
Malaysia is the best place of foreign investment in 2019 and onward. Low cost setting up business climate attracts foreigners to invest in Malaysia. Here, a foreigner can take 100 percent ownership without local shareholder. Sdn Bhd Company is the right format for foreigners.
1. Legal Requirements
As Companies Act 1965, all companies will submit annual return within period of 12 months from incorporate date. It is a punishable offence if fail to submit annual report within the period. Auditor will review full accounting of the company and check supporting papers of income and expenses.
As law minimum one shareholder need to form a Sdn Bhd company in Malaysia. It is not a requirement that foreign need someone as local to start a business, rather foreigner can do business without work permit. Although, it is a hassle and costly to travel in Malaysia every month as tourist to look after your business. Nominee director is not a requirement like Singapore but workable in some cases like open bank account and licensing.
As Company Act, each company will hire one company secretary as legal guardian:
- Appoint 1 secretary to maintain your legal documents.
- Take signature on resignation and appoint new secretary by old secretary to change the company secretary.
- Appoint auditor within short period of registering a company in Malaysia.
Now there might have a question can student be a shareholder? It is true that foreign student cannot be a shareholder in Malaysian law. Who is 18 years old and sound mind being eligible to be shareholder of a company. Can dependent pass holder become owner of a company? Yes, can, dependent pass holder can form a company as shareholder. Can MM2H holder open a company in Malaysia? Yes can, MM2H holder can be shareholder of a company.
2. Business plan
You can make a business plan sitting overseas and open a company. Be remember, you must visit in Malaysia to open a bank account.
You must have registered address in Malaysia and correspondence address might be a separate one. As the practice of Malaysia, all company secretary uses their office address as a registered address of the customers. As a result, when any letter is issued from the SSM secretary is updated immediately.
4. Bank Account
Foreign banks are recommended as foreigner to facilitate opening a bank account. We can recommend for OCBC, UOB and Standard Chartered Bank as all of them have online banking facilities.
- Passport copies and SSM super forms are ready for banks
- Bank guy would like to know the business goal and previous history
- Bank officer also be curious about financial forecasting.
5. Services of the company
- Private Limited Company Registration in Malaysia for
foreigner(SDN BHD as Malaysia language)
- Company Secretary and Virtual Office Address
- Accounting service starts from RM 500
6. Foreign ownership company structure
As you know that foreigner can take 100 percent of company share as that investment needs RM 4000. When Ringgit 500000 is a requirement of investment capital? The capital RM 500 K needs when the company import foreign staffs and apply of WRT. In case of a joint venture company, majority shares are held by local capital 350 need. But, any company can open as paid-up capital of RM 2.
7. Proposed name
- First of all, recommend three propose a name to select.
- There might have a chance of rejection as an inability of the name.
- Company name approval cost by SSM is RM 50 only.
- Company name approval normal time is 1-2 days.
- Three nature of businesses and shareholders passport copies are needful to process.
- Without a name, the secretary is unable of company registration in Malaysia for foreigner and local.
8. Documents preparation
- Passport copy of shareholder (s) along with local address, email and contact number.
- MOA and Forms will prepare by Secretary (CS) upon information of shareholders.
- Secretary will proceed to SSM after online payment.
- SSM fees of Sdn Bhd company registration are Ringgit 1010 (One Thousand and Ten).
- SSM (Suruhanjaya Syarikat Malaysia) is the authority of the company approval.
9. Who can be shareholder
Any person who is 18 years old and have no record: –
- Allegation in own country
The dependent visa holder can be a shareholder and the director of an Sdn Bhd company. Student Pass holder has restriction to be shareholder and director of an Sdn Bhd.
10. The benefit of local shareholder
No, local shareholder is not required to open a company in Malaysia. Benefits of hiring local shareholders:
- We suggest showing capital Ringgit 4K at the initial.
- No need for WRT license if a local person is a shareholder.
- Advantage of the opening bank account as a shareholder (s) is a foreigner.
11. Bank Account Open as Foreigner
Local banks are not flexible if shareholders are foreigners. Foreign banks welcome to foreign shareholding companies upon some conditions: –
- Company background
- Nature of business
- Financial forecasting
- Number of staffs and own rental office
- No allegation against shareholders in own country.
12. Visa and work permit
Visa permission is needed foreigners like to stay longer in Malaysia to look after the ness. ESD approval company has the right of working permit. There are many documents need to be ready to apply for ESD approval. It is a long process of 4 months journey.
13. Proprietorship and Partnership company
Foreigners are not permitted to open proprietorship or partnership business. Only local Malaysian can open same.
14. Why and Who is Company Secretary?
- Company Secretary appoints for all companies are mandatory in Malaysia
- Only who has a license is eligible to be a secretary.
- Chartered Secretary qualified member and license holder from SSM are eligible to Act as Secretary.
9 steps of company registration in Malaysia for
- Put signature in pre-submission copies where shareholders information is visible.
- Proposed name approval by SSM
- Submission of documents (MoA, AoA and Forms) to SSM
- Payment confirm by online to SSM. Secretary can pay by online if you make payment order to Secretary.
- Wait for 1-2 days to get approval of company registration.
- Buy Super Form from online of My Data SSM as this form need to open bank account.
- Yearly submit report to SSM to be regular company even business not startup.
- It might take 2-3 days to be approve of registration.
- SSM provide some copies- 1) Incorporation 2) Memorandum at free of cost.
Branch Office open in Malaysia
As foreign company like to open branch of parent company to enjoy tax. Need of opening branch are as follows: –
- Board Meeting Resolution from parent company’s shareholders.
- Remittance of Ringgit 500K to 1000K along with accounts report.
- Business profile and certified copies need to submit to examine.
- Branch Office open might take 2 weeks’ time if no issue found.
New company registration fee in Malaysia
|Category||Consultancy Fee|| Type of company |
|A||RM 4000 (Incorporation, 1-year secretary and virtual address)||For small size-service or general trading|
|B||RM 4000 ( Incorporation, 1-year secretary and virtual address )||For medium size-import export company |
|C||RM 4000 (Incorporation, 1-year secretary and virtual address)||For large size-Manufacture company|
Registration, formation and license fees, cost as follow: –
|Description of services||License||Fees|
|Company Incorporation, 1-year secretary and virtual address & bank account.||Incorporation by SSM||4000-5000|
|Prepare supporting papers and apply for signboard and premise license|| Signboard
& Premise ||2000|
|Prepare supporting papers and apply for export and import license||Export & Import||4000|
|Prepare supporting documents and apply for WRT license for nonresidents||WRT||4000|
|Prepare supporting papers and apply for Kinder garden school license||Dagang.net||Negotiable|
|Add product and/ or brand name with company name permission||Notification||1000|
|Prepare supporting papers and apply for Trademark license.||Trade Mark||4000-5000|
One word answer about company Registration in Malaysia for foreigner
How many shareholders need to form LLC ?
1 (one) can open Sdn Bhd company but we recommend of 2 persons.
How long takes to register Sdn Bhd?
Normally within 4-5 days a company registration are done through SSM.
How much paid up capital need?
350 K for JV and 500 K for fully foreign own company Sdn Bhd company
Do I need to have office in Malaysia?
Yes (Virtual office also allow). The virtual address allows for company registration in Malaysia for foreigners. But physical office rental agreement act as strength of the company.
What about authorized capital?
It is no longer now a day as new law.
How much is the cost of Sdn Bhd company registration?
4000 include incorporation, virtual address and secretary 1 year.
How many other licenses need to start business?
Signboard, premise, EPF, Export, Import, Halal and WRT as nature of business.
Can S & F assist to open bank account?
Yes, we ensure of bank account in foreign banks.
How I will buy shelf company?
Shelf is a ready company but business not run yet. We provide same if you want to buy from us.
Do I need nominee director in Malaysia?
No need actually.
How much cost for nominee director service?
Ringgit 3000 or negotiable as yearly charge.
Can a foreigner register a company in Malaysia?
Yes, can. And foreigner can hold 100 percent shares of company.
Can foreigner open restaurant in Malaysia?
Yes, can. Foreigner can open restaurant in Malaysia. But WRT and Halal licenses are additionally need.
How can I get business visa in Malaysia?
Only ESD registration company can apply of Business Visa.
Can foreign company open bank account in Malaysia?
Yes, can. Expert of S & F can assist to open Business bank account for foreigners in Malaysia.
Is it allowed to register a company without investor visa?
Is 100 present foreign ownership allow in Malaysia?
Yes. Allow. Foreign investors can hold 100 percent ownership.
Local nominee directorship need to register a new company?
No. As guideline of FDI without local nominee director foreign investor can open company.
Which banks recommended to open corporate account in Malaysia as foreigner?
How can I open bank account as foreign shareholding company?
It’s difficult if paid up capital is below of RM 500,000 and hold tourist visa . We recommend the investors to follow our guideline to avoid negative result.
How much should invest for joint venture company?
RM 350,000 instead of RM 500,000 as recommendation
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