Well, many of us are still unknown to the facts and requirements that are crucial for setting up a Company in Malaysia or any New business entity in Malaysia.
If you are a business owner or any sole investor, who is planning to set up a company or a business firm in Malaysia, this article is going to come in handy for you in a great deal.
Me and my company S & F Consulting Firm Limited, has tried our best to provide all sort of legal and valid information that is required for setting up a new business in Malaysia.
The article consumes all steps, requirements, licenses, laws and problems that one comes to encounter while setting up a new business in Malaysia.
Steps to be considered for Setting up a Company in Malaysia
There are usually 6 individual steps to look into when an investor or a business owner is said to be mentally ready for SETTING UP A COMPANY IN MALAYSIA. These are as follows
2 Company Directors who are citizen of Malaysia or permanent resident of Malaysia –
Well the business companies in Malaysia can appoint more than two company directors if required but at least two of them are said to Citizen of Malaysia or permanent resident of Malaysia.
The company directors are said to be individuals or characters rather than company bodies as Malaysian Government does not recognize corporate directors.
2 Company Shareholders –
Well it is not said to be a must that all these Shareholders appointed by the company has to be Citizen of Malaysia or permanent resident of Malaysia. Yet certain businesses do require a majority of Malaysian ownership.
It is often considered from past experiences and results that businesses owned and operated by Malaysian has some advantage over bidding for government tenders and project.
Role of a company secretary –
To set up any sort company in Malaysia it is a must to have an officially appointed company secretary. The company secretary has an important role to play over company administration and filing in Malaysia.
The official appointed company secretary is said to be licensed by the Malaysian Companies Commission (SSM). Some business company in Malaysia even appoint company secretary on the basis of qualification as a lawyer or accountant.
Setting up a company in Malaysia requires a valid business address –
well if you wish to setup your own company in Malaysia you need to have your own business office in Malaysia. The Business Advisory firms along with our company S & F Consulting Firm Limited can help you find the ideal location for your company address.
Company Share capital –
No limitation is bounded against share capital for setting up a company in Malaysia.
Valid Bank Account –
It is essential to have a valid bank account in any corporate bank of Malaysia to register a company by proper means. The account name is usually designated under the Approved Company Name by SSM.
Mandatory requirements and Cost for Setting Up A Company in Malaysia:
| 1) | Desired proposed company name Approval from SSM |
| 2) | Valid and authentic documents to be submitted to SSM for company registration. |
| 3) | Apply for Sign Board and Premise license -- Rent office, take picture of furniture and layout plan. Collect appropriate form and apply. |
| 4) | EPF and SOCSO licenses |
| 5) | Export and import license if needed. |
| 6) | Halal license and WRT if business is relating of soft drink and retail or whole sale |
| 7) | Submit all authentic papers to ESD to register business. These steps are stated to be mandatory only if have plans for visa application. |
| 8) | Apply for employment visa and hire foreign staffs for the company. |
Required investment capital for setting up a company in Malaysia:
| 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. |
Well this were all about the facts to take in consideration for setting up a company in Malaysia by an foreign investor or any business owner. It usually takes about 3-5 working days if no issues amended by the SSM, also called The Companies Commission of Malaysia.
They are the sole body of act who is responsible for all sort of issues related to business registration and business regulatory affairs for all sort of business entities incorporated in the entire country.
The Proposed business name submitted to SSM by the business owners and foreign investors is rejected normally being no vacant. So, it’s advised to start in the name application propose with 3 (three) business name and apply one by one.
Problems often faced by Business Owners:
Setting up a company in Malaysia is not a big issue to overcome with but running the business at a smooth rate by the local staffs is a major issue and challenging for the business owners.
If company director does not have appropriate visa to stay in Malaysia for monitoring business, it often becomes risky and problematic to ensure successful business outcomes.
Several practical challenges is encountered by the foreign directors after setting up a company in Malaysia. Nevertheless, expenses and other related issues never stops to continue or grow in even if the business fall in loss.
