Company Registration in Malaysia for Foreigner

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;

• Education
• Agriculture
• 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

Address

• 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.

Bank account

• 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

1. There should be a signature in pre-submission copies where shareholders information is clear and visible
2. Company name accepted by the SSM
3. MOA, AOA and other documentary forms which is submitted to SSM
4. Online payment confirmed to SSM. Secretary can make online payment for themselves
5. The approval of company registration takes around 1 to 2 days
6. Super form should be purchase online for My Data SSM as this form needs a bank account to be opened
7. 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
8. It takes 2-3 days for the company registration to get approved
9. Some of the copies which SSM provide are Incorporation and memorandum at free cost

Branch office in Malaysia

1. Board meeting resolution from parent company’s shareholder
2. Remittance of Ringgit 500K to 1000K along with accounts report.
3. Business profile and certified copies need to submit to examine.
4. Branch Office open might take 2 weeks’ time if no issue is found.

New Sdn Bhd Company Registration Fee in Malaysia for foreigner

Registration, formation and license fees, cost as follow: –

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