Company Registration in Malaysia for Foreigner

Company registration in Malaysia for foreigner is not easier in 2020.

Malaysia is one of the most recommended countries to start a profitable business. A foreigner can register a company with 100% foreign scholarship which is known as Sdn Bhd. If you want to receive a full foreign ownership then the company have to be specific about the industries which is consulted by the government of Malaysia.

Registration Guide for Foreigners

• Application for Malaysian company’s commission (SSM) for the registration of local company.
• SSM means Suruhanjaya Syarikat Malaysia which is the authority for company approval
• A foreign company should be registered with SSM in Malaysia.
• As per the company law the company, cooperative, association, group and other type of corporates outside Malaysia.
• An association of unincorporated association and any other groups which may or many not be prosecuted under the law of origin or secretary or official group which are appointed officially for a certain purpose without the concern of headquarters or the main business place

Recommended industries for foreigners to start business in Malaysia

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:

• 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 form the Sdn Bhd company
• It is not required for a local person to start a business in Malaysia. Since it is not hard and costly to travel once or twice to Singapore.
• In the company act it is required to hire a legal guardian where 1 secretary is needed to maintain documents, a signature should be taken from a newly appointed secretary before the old secretary quits
• A dependent pass holder can form a company as a shareholder
• And an MM2H holder can be a shareholder of a company.

Business plan:

• A business plan and the opening of a company in Malaysia can be done in your own country
• But it is required to open a bank account in Malaysia, therefore while opening a bank account it is required for you to be in the country

Address:

• There should be a registered address in Malaysia and correspondence address
• As per the requirement in Malaysia all company secretary use their office address as registered address of the customer so due to this when SSM secretary issue any letter it is immediately updated

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 OCBC, UOB and Standard Chartered Bank since all these have online banking facilities
• Passport copies and SSM forms are required to be prepared for the banks
• The business plan, goal and history are needed to be explained to the bank person
• The financial statement and details are also required to be briefed to the bank person

Services of the company:

• The private limited company registration in Malaysia for foreigners are SDN and BHD whish are in Malay
• Virtual office address
• RM 500 is the starting capital for accounting service

Foreign ownership company structure:

• A foreigner can take 100 percent of the company share which the foreigner invests around RM 4000
• The capital of RM 500K needs to be in the funded when the company import foreign staffs and apply for WRT
• For joint venture company, majority of the shares by local capital. But a company can open paid-up capital of RM 2.

Proposed name:

• Three names should be selected for the company name
• There are high chances of name rejection if the name is not capable
• The cost of getting the company name approves is RM 50 only
• The duration takes 1 to 2 days for the acceptance of company name
• During this process there should be a submission of the three natures of business and shareholders passport
• When there is no name the secretary of the company will not be able to register the company in the country for both local and foreign investors

Preparation of documents:

• Shareholders passport copies, address information, email and contact numbers
• Memorandum of Association and forms which are prepared by the company secretary along with the shareholders information
• SSM will be provided by secretary after the online payment in done
• The SSM fees for Sdn Bhd company registration is Ringgit 1010

Eligibility of shareholder:

• The shareholder who is 18 years old should have no record of Bankruptcy, imprisonment and allegation in own country
• A shareholder and the director of Sdn Bhd can hold a dependent visa
• Student pass holder has restriction to be a shareholder and director of Sdn Bhd

Benefits of local shareholder:

• It is beneficial in having a local shareholder who helps in company start up and registration
• It is suggested to initially show a capital of Ringgit 4,000
• If it is a local shareholder then it will not be necessary for them to have WRT license
• A foreigner who is a shareholder has a benefit in opening a bank account

Opening a bank account as a foreigner:

It is recommended for foreigners to not open a local bank in Malaysia since the banks are not flexible for foreign shareholders.

Some of the documentations to be gathered by the foreign investors are as follows:

• Company background
• Nature of businesses
• Financial forecasting
• Number of staff members
• Rental office details
• Shareholders non-allegations in own country

Visa and work permit:

• Visa permission is very important and required for all foreigners who would like to stay a little longer in Malaysia.
• The approval of ESD has the right of working permit.
• There are many documents to be prepared for the approval of ESD application.
• The process duration takes around 4 months.

Proprietorship and partnership company:

• Foreigners are not allowed to open proprietorship and partnership business.
• Only local people are allowed to open the above type of company

Company secretary in Malaysia:

•  Company secretary should be appointed by every company in Malaysia
• A person who has license only has the eligibility to be a secretary of the company
• Chartered secretary qualified member and license holder from SSM are eligible to act as secretary.

Steps of Company Registration in Malaysia in 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 found.

New Company Registration Fee in Malaysia

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

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