Opening a SDN BHD Company in Malaysia

Foreign entrepreneurs ask regularly what is the process of opening a sdn bhd company in Malaysia by capital of Ringgit 3000 to 1 million. Nonresidents can open sdn bhd company and can’t proprietorship business as fdi law.

Law and rules are changing time to time as same at the beginning 2 share holders were required to open SDN BHD company. But as new changes:

“No more fees on authorized capital” “No need 2 shareholders” and some other changes are made.

Steps of opening a company in Malaysia are:

Step one	Company Proposed Name Approval (Name should be meaningful)
Step two	Required documents submission to SSM for company registration Malaysia (Secretary will do it)
Step three	Rent office, take picture of furniture, layout plan, fill up form and apply for Sign Board and Premise license
Step four	EPF and SOCSO licenses are need as law of country
Step five	Export and import license if need and ensure sample copy to be approve
Step six	Halal license and WRT if business is relating of soft drink and retail and whole sale
Step seven	Submit all required papers to ESD to register business (if have plan of visa application)
Step eight	Now apply for employment visa and hire foreign staffs.

Required investment capital

Proprietorship	Ringgit 250,000 (if have plan to hire foreign staffs)
Joint Venture	Ringgit 350,000 minimum where local partner will hold maximum number of shares (if have plan of visa application)
100% foreign ownership	Ringgit 500,000 to 1.5 million or above if have plan to apply for visa.
100% foreign ownership but without visa application	Ringgit 3000 to 4000 is OK.

Yes, opening sdn bhd company in Malaysia takes normally 3-5 days if no incident from SSM. Proposed business name is rejected normally being no vacant. So, it’s advised to prepare 3 (three) business name and apply one by one.

SDN BHD Registration cost

As plan of opening SDN BHD company in Malaysia if the entrepreneur is foreigner is advised to know the process, cost and time line. Discussion with right consultant about business plan is superior idea.

Showing paid up capital initially 1 million or above decision is unnecessarily and useless that is wrongly suggested by some consultant. Genuine businessmen do not scare of employment visa rather focus on business as visa is secondary that will obtain on time.

Main reasons of visa application rejection are doubtful by immigration department as no fruitful business but main intention on visa for the director! Many entrepreneurs do not know that after opening sdn bhd company there are some other licenses require to start business lawfully.

In case of new businessmen is suggested to make a good plan and prepare financial forecasting and share them with bankers to feel comfortable about you opening business account.

Bank account rejection is regular practice as lack of pre-planning by the entrepreneurs. It is suggested to know the whole process from good consultant how to open a company in Malaysia as foreigner and open bank account and apply for employment visa.

Summary:

Director	1 (one)
Nominee	Optional
Company structure	SDN BHD (Private limited)
Paid up capital	RM 3000 to 1 million as need
Contact	Good consultant

Problems:

Opening a company in Malaysia is not an issue but running business by local staffs is major issue and challenging. If the director has no visa to stay in Malaysia longer and monitor business is risky to be successful. Many practical challenges have to take by the foreign directors after open a company. But expenses will not stop but continue even business fall in loss.

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