This is very common discussion, hide and sick information and rumour that foreigner can not do business alone as local partner is a requirement. It is not a true that local partner is required to register, do business in Malaysia as foreigner.

Non-resident, foreigner can hold 100% shares of the entity by law of Malaysia (condition apply). This is noticeable in SME business owners if director is foreigner that one local is must to start business in Malaysia.

We guarantee that local is not required (condition apply) to register Sdn Bhd company and start any business in Malaysia as foreigner. Yes, some businesses have restriction as like travel and air ticketing for foreign shareholding companies.

There is no issue from banking site to disallow foreign directors open business account in Malaysia. But, local banks discourage foreign directorship companies (unknown issue). Although, as guideline of Malaysia, SSM and Companies Act, foreigner can hold 100 percent shares of the entity. Yes, foreigner can hold 100% shares of the company in Malaysia by Law and SSM guideline.

Advantages and disadvantages of local partner

There is some advantages of local director in the company with foreign directors as follows:

• Open bank account
• Obtain business license
• Low investment (investment capital RM 500k-1 million is not required)
• Miscellaneous

There are many disadvantages to allocate shares to local of foreign shareholding companies:

• Internal conflict
• Profit and loss fighting
• A percentages of profit share with local monthly basis

Tips:

• There is no requirement to appoint local director in any foreign shareholding company in Malaysia.
• Investment capital of register a company must be RM 500,000-1 million if shares are hold by foreign directors (no local is in the company).
• Read more on steps, cost of Sdn Bhd company registration in Malaysia as foreigner.