Online business registration as local Malaysian is easy as no restrictions of opening bank account, paid up capital hiring staffs and operations. Whereas Sdn Bhd company registration process as foreigner is easier but operation is incredibly challenging. Foreign entrepreneurs neither can stay longer as tourist visa nor import staffs from overseas until work permit is managed. To obtain work permit is more challenging as the list of documents are matter of time and costly after registering a company. Once the foreign shareholders run business from overseas and never know work permit will be approved or not after a long time. Holding a tourist visa of a director entering Malaysia frequently is questionable and harassment by immigration of Malaysia. If work permit or residence visa is not approved, then the operation investment will be meaningless. And now, a foreign shareholder is facing more complication to decide how to continue the business by hiring local staffs. And local staffs never bring result than importing staffs from overseas. This is the true story and not an imagination as many companies of foreign shareholding are strike off, later, when face the reality. To carry on business as foreigner by local staffs is like director is responsible to employees for all. Now, easy questions might be asked, how the others are doing business in Malaysia where shareholders are foreigners? Foreign entrepreneurs who are success in Malaysia are: 1. Multinational company 2. New business but big investment 3. Huge manpower setup and well organized 4. Local and foreign partnership 5. Cost effective to setup factory or operational office to control South Asia.
Online Business Registration Process step by step
- Hire company secretary who is eligible to process registration by online
- Propose 2/3 names as common name is matched in Malaysia frequently.
- Reserve a selected name with ending Sdn Bhd as title (limited liability)
- Fill up a form given by secretary and sign as declaration as pre-company registration.
- Secretary will proceed along with require documents to SSM
- Registration is completed by 3-5 days
- Buy business registration forms from website of MYDATA SSM
Business Bank Account
- Renowned consultancy firm arrange banker to sign of account opening forms sitting in secretary office
- Foreign entrepreneurs are recommended to open business account with HSBC, SCB, OCBC
- Initial deposit start from RM 30,000 to 50,000 and monthly maintenance cost is applicable
- Online transfer and international transfer (TT) are much easier by foreign banks without hassle.
- Submit your SSM copies those received after registration of a company.
Other Business License
- Apart from company incorporation some other licenses are needed as registration process
- Signboard and premise license by DBKL & MBPJ local council in Malaysia
- Income tax number
- Export and import license in terms of export import businesses
- Halal license
- WRT license (wholesale and retail trade)
Investment capital of business registration
- Export import
Service business: In case of service-related businesses recommended investment, capital is RM 2000-5000. As WRT license might not require most of the companies as law of Malaysia.
Export and import: If the nature of business is relating of retail must require investment capital RM 1 million. And, it is complicated by local authority, DBKL and MBPJ now a days if shares of business are hold 100% by foreign investors.
Manufacture: We recommend investing RM 1 million as minimum in case of manufacture company registration by online.
Now, investment amount depends on nature of business and work permit application. If work permit/ residence visa is not required is recommended to invest RM 2000-5000. In case of retail business must take a good advisory from expert (S & F Consulting Firm) before processing of business registration.
How to find business registration number in Malaysia?
You can check whether your business is registered or not and what is the number of registrations. Search in Google my data ssm, https://www.mydata-ssm.com.my/, open an account as personal, director or secretary. Once verification of email is completed then log in. Search the company name and have look the registration number through SSM of Malaysia. Now, if you like to check who are the director, secretary, where is address and so on must buy the forms. Each form cost start from RM 15 to 25 and in case of certified copies to buy must add some more. At the time of online business registration all forms will not be provided at free of cost by SSM. You can get super form, particulars of director, initially at free. Some directors ask for all copies with free of cost from secretary is lack of knowledge.
What others are relating with business registration?
Generally online business registration is quite easy, but you must need local residence and business address, email, and contact number. And hiring a license company secretary is must by law for all Sdn Bhd companies. No license from SSM is no qualified to be secretary. So, company secretary and address are must before start of new business registration.
Cost of online company registration
As Malaysian government fee of limited company registration is RM 1200 but without other services. Additionally, secretary services, business address, certify ssm copies, board resolution, bank account open, SSM copies are separate bills must carry by the directors. Ready office desk rent in the amount of RM 400 only that is cost effective as businessman. Whereas rent a full office is costly and decoration cost are needed. At the beginning one/ two ready desk rent by low budget is smart choice. Yearly costs are:
- Annual return in RM 1500-1800 including return, secretary service and virtual address rent
- Tax fee in RM 800-1200
- Financial statement fees RM 1000-5000 (depend on business transactions)
- Audit fee is RM 3000-4000
- License renewal fee is RM 600-1000
Post business registration steps
Yearly return submission before expiry of birthday of your company is must whether do business or not in Malaysia. Ignoring return submission must accept a letter of penalty amounting RM 5000 and above from SSM. Director will decide a year of tax and accounting as own choice but avoiding rush period is recommended. You can apply for work permit as director or manager or executive after ESD registration. To apply of work permit within next 4-6 months are recommended when online business registration is done, and operation are started also. Without commencement of business applying for work permit will bring negative result. But yes, you can submit to review your application by valid papers to approve by immigration. Generally, immigration takes long time from 3 months to 12 months.
Culture and behavior as part of business
Think about culture there before processing of any new business registration fee and investment. Never mind, we belief that we look. People who enter in Malaysia from Asian countries are considered poor in general. Only, white colors are rich and demandable in Malaysia. Never consider white colors have money, talent, assets or not. As black people from Asian who comes to work are poor, so it is considered all the people of that country are poor. Now, who leaves the chair in respect if the person is poor. Labor force who works is Malaysia from Asian countries, 90% of them have own house and small land of paddy in their country. But why then labors come to work there if they have land and house? Easy to answer is they have no job in own country and all of them are unemployed, indeed. Can you think life of labor force in Singapore? Are they neglected by local? No, why, you must know the answer. This is the difference between Malaysia and Singapore people. On course, Malaysia is one of the best development country in Asia and there are still many scoops of development. We have noticed, many Malaysian are illegal in Australia, https://www.nst.com.my/opinion/letters/2019/04/479487/illegal-malaysian-workers-australia-reveal-they-shun-wages-home-not , https://www.thestar.com.my/news/nation/2020/02/28/five-malaysians-prevented-from-entering-australia-to-illegally-work-in-farms Anyway, never mind, there are many business opportunities in Malaysia for local and foreign investors. Still, administration gets appreciation as anyone can submit police report to investigate and action. Hence, tourist & entrepreneurs feels comfortable to travel and start business in Malaysia. Administration of Malaysian government is better than all Asian countries if compare, except Singapore. On the other hand, some labors, tourists, and students never returned to home country when visa is expired and lives there illegally. As a result, a bad identity carries of home country as illegal persons. Who respects the illegal person!
Top 5 challenging in Malaysia after online business registration as foreigner
- Business operation by local staffs
- Work permit
- Local government (DBKL, MBPJ)
Why Malaysia is one of the best in Asian country considering business hub?
- Roads and highway
- Power supply
- Cool politics
- Job opportunity
- Head office of multinational companies
- Palm Oil
- Neighbor of Singapore
- Living cost is reasonable
After all, it is recommended to foreign entrepreneurs welcome to Malaysia as your business hub of Asia. Apply for work permit within next 6 months after registering Sdn Bhd company and start of operation. Hire local staffs & rent ready office by low budget and carry on business until work permit is approved. Of course, this is challenging to operate company from overseas and holding tourist visa as director of the company. If any local is allocated majority shares of business is the best to do business without any hassle after registration.
1. LLC (Sdn Bhd Company) 2. Proprietorship 3. LLP 4. Branch office
This is Malaysian language Sendirian Berhad is called private limited company one of the most popular type of company registration in Malaysia for local and foreigners.
1. Easy to register 2. Shareholders can allocate shares as need 3. Multiple shareholders can add 4. Any decision can make by shareholders unanimously. 5. Banking facilities 6. Foreigners have only one choice is Sdn Bhd.
Multiple number of shareholders and company is eligible to sell their shares publicly. This type of company will register with stock exchange to offer shares to publics.
In a word, Ringgit 1200 is government fees including name and incorporation. Secretary and other fees are separate.