Company registration in Malaysia for foreigner is easy that can do by 2 days whether directors available in Malaysia or overseas. 100% foreign owned company in Malaysia is possible terms and conditions are applied.
Malaysia is one of the most recommended countries to start a profitable business. A foreigner can register a company with 100% shares of the Sdn Bhd company. You can start service, retail, trading, export, import or manufacture company in Malaysia as foreigner.
Registration Guideline of Sdn Bhd Company when directors are foreigner
- Application for Malaysian company’s commission (SSM) for the registration of Sdn Bhd company.
- SSM means Suruhanjaya Syarikat Malaysia which is the authority for company approval from where company name must get approval at first.
- A foreign company should be registered with SSM in Malaysia as sole proprietorship company is not permissible.
- Some documents shall be prepared by company secretary and submit them to SSM as registration process.
- Either company secretary (COSEC) or director can make online payment of government fee and get approval same day if all are perfect.
Company with foreign shareholders
Any type of company is permissible by foreigner to hold 100 percent shares as local partner is not necessary (terms and conditions are applicable). There is some restricted businesses must have look before planning to start a company in Malaysia.
- Tourism company
- Air ticket selling
- Wood and timber business
- Any retail business (either capital 1 million or take local partner)
The following industries are supported by the Malaysian government which are encourages for the foreigners to invest business in;
- Banking and finance
- Tourism outbound and ticketing
- Petroleum, oil and gas
Legal requirements of registration
- As per the companies act 1965 all companies will have to submit the annual return within 12 months from the incorporated date.
- There will be severe consequences faced by the applicants if they do not submit the annual report within the given period
- Auditor will have to check the full accounts of the company and check the incomes and expenses of supporting papers
- According to the law there should at least be 1 shareholder to register the Sdn Bhd company
- It is not required to take a local person for company registration in Malaysia as foreigner.
- As company act it is required to hire a legal guardian, 1 company secretary, to maintain documents and SSM works. Either old COSEC sign or director sign on appointment letter to hire new company secretary, in case of COSEC changes.
- A dependent pass holder can form a company as a shareholder
- And an MM2H holder can be a shareholder of a company.
- Age of director (shareholder) shall be at least 18 years as passport.
- No bankruptcy record is available in own country against the foreign director.
Business plan check list
- Valid passport of the directors
- Location of the company in Malaysia (retail business) but corporate business have no issue of the location.
- Investment and costing plan (take advise from consultant)
- Other rules and regulation to carry on business during the year.
- Yearly costing and responsibilities.
- Living cost and work permit procedure.
- Directors must have ideas on income tax, EPF and SOCSO in Malaysia
- There should be a registered, business and residence address in Malaysia for all foreign directors.
- As per the requirement in Malaysia all company secretary use their office address as registered address.
- For foreign investors in the country it is recommended for them to open a bank account in a foreign bank. Some of the banks which can HSBC, OCBC, UOB and Standard Chartered Bank as all these have super online banking facilities.
- Passport, SSM documents, board meeting resolution and income tax (own country) documents are ask for to begin bank account in foreign banks.
- Banker ask for clear business plan and financial forecasting to feel comfortable open a business account.
- A residence address of the director is one of the most important list to open bank account in any foreign banks.
Services of the company
- The private limited ( company registration in Malaysia ) company registration for foreigner (any type of business).
- Virtual office address for business communication purpose.
- Company Secretary Service as to appoint COSEC is compulsory for all Sdn Bhd company in Malaysia.
- Bank account open in HSBC, OCBC, UOB and SCB (foreign directorship company)
- Income Tax filing and management accounts.
Structure of foreign ownership service company
- Foreign owners can hold 100% shares of the company as local partner and shareholder is not required.
- We recommend to keep equity Ringgit 2000 at least and increase capital anytime when require.
- There is at least one foreign director is needed to register Sdn Bhd company.
Note: Foreign director can not apply for work permit to live in Malaysia unless investment capital of the company is Ringgit 500,000/-. Contact with us for consultation over WhatsApp: +601151177141.
Structure of foreign ownership retail, manufacture, export and import company
Process of company registration in Malaysia is same for foreigner either business is service, export, trade, retail and manufacture. The difference is require investment capital for the purpose of work permit application, WRT license, retail business and others.
Key points of investment capital for foreign ownership company
- Retail business- Investment capital must be 1 million unless there is 1 local shareholder who holds majority shares
- Export and import business- Any amount can keep in equity investment but it is recommended to keep Ringgit 2000.
- Trading business- It is recommended to keep capital Ringgit 2000 at least.
- Manufacture- 1 million, investment is required to get other licenses. But, company registration at the beginning can do by keeping capital Ringgit 2000.
Procedure of foreign company registration in Malaysia
Directors are proposed to write 3 company names to check availability as major part of foreign company registration in Malaysia. As it is noticeable that, similar name is matched and it is rejected and RM50 is required to submit each new name.
- Three names should select considering own brand, meaningful and un-common.
- The duration takes 1 to 2 days for the approval of company name
- During this process there should be written maximum three natures of businesses.
- Sdn Bhd (Limited Liability) company registration is completed by 1-2 hours if name is approved earlier.
Preparation of documents
- Foreign director of the company shall sign on papers where basic information is written. For example parents name, permanent address, email and contact number are available.
- Memorandum of Association and forms which are prepared by the company secretary along with the shareholders information.
- Company secretary can make registration payment by online to SSM.
- Government fee (SSM) for Sdn Bhd company registration is Ringgit 1010.
Benefits of local shareholder in a foreign ownership company
- Advantage is if apply for other business license after company registration in Malaysia for foreigner.
- In case of starting a retail company Ringgit one million is required in equity investment if foreign shareholders hold 100% shares. Whereas Ringgit one million is not required if any local shareholder is there along with foreign partner.
- Foreign director get advantage when process of account open if there is any local shareholder in the company.
Visa and work permit
- At the beginning to start a business, foreign director shall visit as tourist (social pass) and complete necessary works to prepare documents to apply for work permit.
- ESD registration is the important to apply for work permit as director or CEO or Top management.
- There are around 8-15 kinds of documents required to submit to ESD
- The process takes around 15 days to 2 months.
Proprietorship and partnership company
- Foreigners are not allowed to open proprietorship and partnership business in Malaysia.
- Only local people are allowed to open sole proprietorship and partnership company.
Company secretary in Malaysia
- Company secretary should be appointed by every Sdn Bhd company in Malaysia.
- A person who has license only has the eligibility to be a secretary of the company. License secretary (issued by SSM) and chartered secretarial qualified members are eligible to be a company secretary.
- No others can process for company registration unless is qualified member and license holder.
Steps of company registration in Malaysia for foreigner
- There should be a signature in pre-submission copies where shareholders information is clear and visible
- Company name accepted by the SSM
- MOA, AOA and other documentary forms which is submitted to SSM
- Online payment confirmed to SSM. Secretary can make online payment for themselves
- The approval of company registration takes around 1 to 2 days
- Super form should be purchase online for My Data SSM as this form needs a bank account to be opened
- Every year a company report should be submitted to SSM to keep track on company’s regular basis. This is also included for companies which are yet to start
- It takes 2-3 days for the company registration to get approved
- Some of the copies which SSM provide are Incorporation and memorandum at free cost
Branch office in Malaysia
- Board meeting resolution from parent company’s shareholder
- 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 is found.
New Sdn Bhd Company Registration Fee in Malaysia for foreigner
|Category||Consultancy Fee|| Type of company |
|A||RM2500 (Incorporation from SSM, 1-year secretary service).||For small size- service or general trading|
|B||RM2500 ( Sdn Bhd Incorporation, 1-year secretary service).||For medium size- import export company |
|C||RM2500 (Incorporation in SSM, 1-year company secretary service).||For large size- Manufacture company|
Registration, formation and license fees, cost as follow: –
|Description of services||License||Fees|
|Company Incorporation, 1-year company secretary and bank account.||Incorporation by SSM||2500|
|Prepare supporting papers and apply for signboard and premise license|| Signboard & Premise ||1200|
|Prepare supporting papers and apply for export and import license||Export & Import||3000|
|Prepare supporting documents and apply for WRT license for nonresidents||WRT||3000|
|To prepare supporting papers and apply for Kinder garden school license||Dagang.net||Negotiable|
|Add your product and/ or brand name with company name permission||Notification||1000|
|Prepare supporting papers and apply for Trademark license.||Trademark||2000-3000|
One word answer about company Registration in Malaysia for foreigner
How many shareholders need to form LLC (Sdn Bhd) ?
1 (one) can open Sdn Bhd company but we recommend of 2 persons.
How long takes to register Sdn Bhd?
Normally within 2-3 days a company registration are done through SSM.
How much paid up capital required to register Sdn Bhd company in Malaysia?
Ringgit 1 (one) at least but we recommend to keep equity RM2000.
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 authorised capital?
It is no longer now a day as new law.
How much is the cost of Sdn Bhd company registration?
2500 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 (HSBC, OCBC, UOB, SCB)
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. But, it is rare now to get any local person to act same.
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. To apply for WRT license equity investment capital of the company must be Ringgit 1 million.
How can I get business visa in Malaysia?
Only ESD registration company can apply of Business Visa. To apply for ESD equity investment capital of the company shall be RM 500,000 (100% foreign own company), RM 350,000 for joint venture company.
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?
Yes. Allow. Foreigner can register Sdn Bhd company with social visit visa (tourist).
Is 100 present foreign ownership allow in Malaysia?
Yes. Allow. Foreign investors can hold 100 percent ownership without local partner (T&C apply)
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?
OCBC Bank & Standard Chartered Bank, HSBC & UOB.
How can I open bank account as foreign shareholding company?
Contact with S & F Consulting Firm, we guarantee to open bank account with foreign banks
How much should invest for joint venture company?
RM 350,000 instead of RM500,000 as recommendation to apply for ESD registration. Ringgit 2000 is recommended to register Sdn Bhd company if no intention to apply for ESD (work permit).