It is wise to know some basics of Malaysia when you are up for sdn bhd company registration Malaysia as a foreigner. First of all, you should know the country well. If you think you know the ins and outs of this country, proceed for the registration process. Registering a sdn bhd company needs investment capital as minimum of RM 2 only. You also have to follow company registration guidelines of SSM. Getting business licenses along with ESD, WRT, Halal and Signboard is also compulsory as need.
All these are for registering a company in Malaysia where FDI inflow is increasing day by day. According to the world bank, the FDI record in Malaysia was $ 11,507, 697, 706 last year. With no doubt, this figure represents a great economy. As a developing country, the economy of Malaysia is growing at an exponential rate. Both foreign and local investors are contributing to economic uplift. Another reason for such uplift is the country’s Lower population density of 32.6 million only. Whereas, the land area is about 325,000 square km.
Consider economy and FDI in Malaysia to register a company
Unemployment rate is bit higher than inflation rate 3. one. Major export countries are USA, China, Thailand, Singapore, Japan, India, and Indonesia. Currency of Ringgit is 4 times smaller than US$. Foreign investment tax rate should reduce with more facilities to increase of economy. Why Singapore is more development country as foreign investment rate is higher. Major foreign investment sectors are Oil, Gas, construction, IT and others. Main cities of Malaysia are Kuala Lumpur, Ipoh, Johor Bahru, George Town, Malacca and Penang. But now a day Putrajaya is a clean and plan base city that attract foreigners.
- 1 Investment and Paid Up Capital of Registering a Company in Malaysia for Foreigner
- 2 Shareholding Information of Private Limited Company
- 3 16 Quick Guideline about Sdn Bhd Company Registration Malaysia
- 4 Joint Venture Company Registration Paid up Capital Malaysia
- 5 Steps of Company Registration Malaysia for Foreigner
- 6 Check Requirement of Limited Company Formation in Malaysia
- 7 Online Sdn Bhd Company Registration Fees in Malaysia
- 8 How to Register a Company in Malaysia Online?
- 9 Legal Process of Register a Company
Investment and Paid Up Capital of Registering a Company in Malaysia for Foreigner
Investment, paid up capital in Ringgit 5000 is ok at the beginning, later increase as need.
- One good format of company registration is Sdn Bhd and investment recommended RM 5000 at the beginning.
- To start export and import business increase capital in Ringgit 500,000/-
- To start manufacture company, show capital in Ringgit 5000 later increase 1 million.
- If you do not have plan to apply of work permit is good advised to show capital in Ringgit 5000 only.
- To start a service business, show your paid up, investment, capital in Ringgit 5000/-
- Those businesses relating of retail and wholesale are good advised to show paid up 1 Million.
Update about Holiday in Malaysia before register a Sdn Bhd company
There are fifty days holidays as government declaration. Standard office days are Monday to Friday, time 9 am to 5 pm. There are two holidays in week, Saturday and Sunday.
Average salary information
|Executive officer||RM 1500 – RM 1700|
|Administrative manager||RM 4600 – RM 5000|
|Brand manager||RM 6000 – RM 7000|
|Assistant General Manager||RM 9000 – RM 10000|
|Business Executive||RM 3000 – RM 3500|
|Audit Manager||RM 5000 – RM 6000|
The standard monthly salary for executive, 2 years’ experience is RM 1500 – RM 1700. Whereas for an admin manager and managerial posts, 4-5 years’ experience is RM 6000. Manager who has experience 7-8 years, salary range is RM 7000-9000. Accounting executive, 2 years’ experience is RM 3000-3500 and manager is RM 7000-8000.
When speak with a representative of consultancy firm you cannot see the real picture. There are many firms who is the right one to pick is difficult. The choice one whom you selected firm have no real secretary. Whereas secretary will proceed of sdn bhd company registration by online and whereas flying secretary create big issue. The process of sdn bhd company is not complicated but all process should be as SSM need. Foreign investors like to open sdn bhd company by 1 shareholder.
|Permission Authority||Company||Share %|
|SSM||Foreign ownership||100 percent|
|SSM||Joint Venture||49 percent foreign|
|SSM||Branch Office||100 percent parent|
16 Quick Guideline about Sdn Bhd Company Registration Malaysia
- Hire a company secretary
- Let secretary prepare MoA and Forms
- Three Proposed company name let secretary check if available
- As guideline, name approval might need 2 days as preliminary job of company registration.
- Set paid up capital, at initial in Ringgit 2000-5000.
- Pay government fees in Ringgit 1010.
- Name approval fees in Ringgit 60 (sixty).
- Submit all papers to SSM by online
- Company Incorporation Process will complete by 2 days
- Let secretary buy super form from mydata ssm
- Secretary will prepare board resolution
- Open bank account in OCBC, Standard Chartered and UOB
- Rent an office with tenancy agreement (1 year)
- Next step is apply for business licenses (example signboard, premise, import, Halal etc).
- Apply to ESD to check and verify your company
- Apply for employment pass and hire foreign staffs.
Download important forms before register a Sdn Bhd company
Joint Venture Company Registration Paid up Capital Malaysia
As joint Venture (JV) company registration process capital needs in Ringgit 2000- 5000 at the beginning. Later increase up to 350,000/- if have intention of employment visa application after ESD registration. The difference of 100 % ownership is 350 K instead of 500000/-. Local partner should hold majority shares of the company. We recommend holding 80 percent shares by local if apply for work permit. Tax calculation will be imposed as shareholding proportion. Moreover, WRT license application is getting exemption being local partner.
Shelf Company Registration
No meaning if buy shelf company as registration from SSM takes 4 days. Shelf company is good to buy where business registration takes long time. Be careful of debt and history of shelf company before buy. As bank account is easier so why need to buy shelf company is meaningless. Cost of buying shelf company is higher than open new company.
Steps of Company Registration Malaysia for Foreigner
- Search in Google “Company registration consultant in Malaysia” and call S & F.
- Speak with representative of S & F Consulting Firm.
- Ask them unknown questions to make you 100 percent clear.
- Discuss over phone about licensing after Sdn Bhd registration.
- How many licenses need as your nature of business?
- How much paid up is suitable for your business take a good advice.
- Ask them to know what the process is of applying work permit.
- 1 shareholder is the need as SSM instruction to form a sdn bhd company.
- At most fifty shareholders can add in one company.
- Nature of business select in one sentence, for example Accounting service provider.
- Speak with real license company secretary as 90% are flying secretary.
- Complete discussion about total process and professional fees
- Let CS start the process of registering a company name
- Fill up a form where basic information and bankruptcy declaration are mention.
- Open bank account in prior advisory with S & F consulting Firm.
- Ask your secretary (our company secretary) to prepare board resolution of bank account.
- Apply for other licenses as need considering the nature of business.
- Discuss with representative of S & F Consulting Firm about work permit.
- Assign license representative of S & F to apply for signboard & Premise license.
- EFP registration and SOCSO number manage by S & F team to contribute them.
- Let S & F Team apply for Income Tax Certificate (Corporate).
- Let S & F handle to apply of Halal, import, ESD & notification license.
Check Requirement of Limited Company Formation in Malaysia
|Director||One||Sdn Bhd company formation|
|Nominee||Not necessary||Sdn Bhd and Branch|
|Benefit||Appoint Nominee||Visa and Bank account|
|Nominee Fee||If need||2000-3000, yearly|
|Directors form||Buy from My Data||SSM|
|Paid up fee||No More||SSM|
|Dependent||Can open company||Sdn Bhd|
|Visa by 4000||Not possible||Immigration|
|Visa||Capital 500K-1 M||ESD|
|WRT License||Visa||Ministry of Trade|
|51% local share||WRT no need||Ministry of Trade|
|Time for ESD||3-6 months||Expatriate Service Dept.|
Online Sdn Bhd Company Registration Fees in Malaysia
- Company name registration in Ringgit 60
- Sdn Bhd company registration fees by SSM in Ringgit 1010 (government fees)
- Company Secretary annual fee in Ringgit 1000
- Virtual Office rent fee in Ringgit 120 per year
- Buy forms and print copies in Ringgit 100 per year
- Company chop by secretary in Ringgit 10 per seal
- Board resolution in Ringgit 15 per copy
- Documents deliver by courier fees in Ringgit 20 each
- Company seal in Ringgit 100/-Miscellaneous in Ringgit 100/-
- SSM documents fees
We are not charging above mentioning fees. Rather, we do change for company registration service in package as below:-
|Registration & professional Fees RM||Description||Nature of Business|
|3500||SSM, professional fee, secretary, chop and Virtual Office||Service companies|
|8500||SSM, professional fee, secretary, chop, Virtual Office, signboard and export import license fee||Export Import|
|14000||SSM, professional fee, secretary, chop, Virtual Office, export import license, environment and manufacture||Manufacture|
Note: Above fees schedule are exclude of business license and visa.
Registration along with other necessary license fee as follows:-
|Description of services||License||Our Fees|
|Company Incorporation, Forms, Secretary, Virtual Office & Bank Account||Incorporation||3000-4000|
|Prepare papers for signboard and premise license||Signboard & Premise||2000|
|Prepare papers for export and import license||Export & Import||3000|
|Prepare documents of WRT license for nonresidents||WRT||3000|
|Prepare papers for Kinder garden and Halal License||Dagang Net||Fees vary (Contact us)|
|Add/ change brand name||Notification||1000|
|Prepare papers for Trademark license||Trade Mark||2000|
Note: above fees are inclusive government and professional fees.
How to Register a Company in Malaysia Online?
|Relating of registration||Require capital before and after registration (RM)||Time|
|LLC (Sdn Bhd) company||Recommended minimum RM 2000, initially to register a company||2-3 days|
|Hire company secretary||1200-2000||Yearly|
|Open bank account||Initial capital RM 30K-50K||15-30 days|
|Signboard license||2000-RM 500,000 (Paid up)||5-7 days|
|Export & Import license||2000-500000 (paid up)||1-3 months|
|Halal License||500000-1 million (paid up)||15-30 days|
|Expatriate visa (work permit)||500,000-RM 1 million||1-3 months|
|Annual Return||1500-3000||5-7 days|
|Tax filing||1000-1500||10-15 days|
|Financial statement||2000-5000||15-30 days|
|Strike off||1500-2000||7-10 days|
Legal Process of Register a Company
This process is under the company’s act 1965, SDN BHD.
|14||Registration of companies||At least two individuals need to register a company in Malaysia online. Individuals can register a company as limit by guarantee or, limited by shares. Or, it is limitless company|
|15||Private limited company||Shares are not allow to transfer within a private limited company. A greatest of fifty members are limit as shareholders . The provision of public shares is not allow by law.|
Registration and incorporation process
|The registrar office offers a certificate of incorporation.|
The office of government registrar provides a certificate of a limited company. A certified copy must provide to a limited company as a guarantee of shares. A certified copy must ready for an unlimited company.
|17||Partners of holding company||A company will cancel if it becomes an associate firm.|
Requirements to register a company
|Shareholders name, company, auditor, number of shares and secretary name will mention.|
|54||Company return of allotment||The shares of a company shall be shared as a value of per share.|
|124||Directors qualification||Shareholder will buy company share and a fine RM 1000 count if fails to buy.|
|143||Annual General Meeting (AGM)||Companies should hold AGM within the year (12 months). In situations of new companies, they are allow a most of twenty-one months to host an AGM|
|152||Special board meeting resolutions||The meetings must pass by majority votes, at least 75%|
|165||Annual Return Submission||Companies should submit the returns , but a fine of RM 2000 is impose on the defaulters.|
|212||Procedure of company winding up||The procedure of the company winding up|
|211||Wing up||A company can either shut as wish or through a court of law verdict.|
Sdn Bhd Company Registration Lodgment by a Company Secretary
• As law, each sdn bhd must have one license secretary.
• Company secretary can be a license and ICS qualified member
• Company is not a shareholder but legal guardian
• Hire secretary by good payment as honor
• Share transfer jobs are under secretary
• New director appointment and share increase are undersecretary job
• Any board resolution including AGM are secretary responsibility
• Annual return submission and liaison with auditors are secretary responsibility
Disqualification of Sdn Bhd company registration as section 139
- When the law convicts a person
- When one becomes bankrupt
- The government can withhold any license if found guilty by the directors of a company
Qualification of company secretary section 139 A
- If any individual possesses a license from the registrar office
- The person has a license from a company’s secretarial department upon passing exam
The procedure of transferring company shares
The secretary will fill the info on form 32A on behalf of shareholders and then put signing as shown below:
- Write the name of the company
- Full info of share transferor
- Full info as a form of a transferee
- The quantity of shares be transfer
- Value of every share and total shares
Board meeting Minutes procedure after company formation in Malaysia
Before or after knowing how to register a company in Malaysia online, you may notice some of the following rules:
As section 143, all companies must host a yearly meeting attending majority members. And resolved accounts by members. It is also notable that a new company should hold a meeting within a period not exceeding 21 months. Afterward, AGM formalities must hold within twelve months.
Annual Returns Submission rules as part of regulation of limited company
As section 165, directors will appoint chartered accountant to complete audit report.
Bank account open difficulties after company registration
We have noticed that most of the small and medium companies open as guideline of the company secretary. But no one secretary or adviser will ensure opening bank account for the clients! As a result, most of the investors face difficulties after registering a company in Malaysia. More information of problem and solution of an opening bank account in Malaysia.
Recommended banks list of Malaysia: OCBC
Wind up a company in Malaysia
Company can be winding up whether as wish or, verdict of court. Surrendering all debt and any financial directors can wind up company as section 217 . And company wind up by verdict of court upon confirmation of all debt and liabilities. Fee of wind up are as follows:
The process of appointment of new director in Malaysia
A new director selected by the decision of the board members. And approve by final meetings of AGM as well as the procedure of the company registrar office. The incoming manager should be of sound mind, have the ability to work as a director. Director should not imprisoned, guilty or convicted in a court of law.
Starting a restaurant business in Malaysia
The investors need to find a suitable place where the restaurant will situate. The right place is important in starting a restaurant business. The second aspect to consider is selecting the appropriate person for the proper position. Another tip is decorating your restaurant as well as setting aside capital of RM 20,000 – RM 50,000. Finally, make sure to complete the legal process to register a company in Malaysia online via SSM.
The requirements of an export-import business in Malaysia
You should note that all products are allow for export purposes . Import licenses issued by the department of standard and concern department. Additionally sample taste should perform for every product to permit by the department. Nonetheless, you should register a company first before applying for an export license. Export import license can apply after sdn bhd company registration Malaysia is done by SSM.
According to the Co-ordination Act 1975 (ICA), shareholders should invest more than RM 2,500,000. Benefit is to recruit more than 70 staffs to get licenses from industrial department.
In situations of project approval, the investors should invest RM 140,000. Where 80% staffs should recruit from Malaysia. Technical, supervisors, as well as managerial employees, should hire from the Malaysian people.
Allow import license for the below products:
- Raw Sugar produce
- Other Sugar produce
- Wheat Flour Foods
- Different types of milk
- Clay and powder
- Iron and steel products
- Pipe and tube goods
- Optical disc, Toner and printer
- Photocopy machine and Medicine
- Plastics, chemicals and Tyres
- Heavy weight trunks, tractor, vehicles and motor cycle
- Refine sugar, bricks and cinematographic
- Any milk, waste iron and recycling
Note: Apply to Import Export Control Division, Kuala Lumpur, Malaysia with supporting papers. Product test, legal papers, figure of import goods mention after sdn bhd company registration in Malaysia as non-resident .
Import prohibition list in Malaysia are as follows:
- Currency, bank note and coin
- Chemical products selling and producing that is dangerous and harmful
- Pen, pencil, syringe goods
- Products that is not permitted by government
- Knifes or Draggers and such items that are dangerous
- Cards, tapes, films, painting, books and other media
- Photocopy and Quran, holy book
- Radioactive materials
- Turtle eggs
- Broadcast radio for communication is not allowed
- Piranha Fish not allow by government
- Illegal goods those are harmful for health is punishable offence, sentence death. But any products that are permissible by health department can import.
Factory setup more information: Department of Chemistry Malaysia , Malaysian Investment Department Authority
There are companies that you cannot start up in Malaysia by owning their full shares as a foreigner. These companies include:
- Petroleum, Oil, and Gas
- Bank or any financial company
- Tourism company
- Various agricultural businesses
- Education fields with some exception
Work permit in Malaysia after company open
|Type of visa||Qualification||Tenure|
|Professional visit pass||Skill personnel||1 year|
|Employment pass||Long time social pass, social pass and dependent pass-upon contract||5 years, at most|
|Temporary employment pass||Helpers and maid||1 year|
Source, ESD-Expatriate Service Department- Malaysia. Only after opening a company is permitted to apply for work permit. There are around 11-12 number of documents need to be prepare to apply. It does not mean that who register a company and get work permit.
Income Tax for Malaysian Company
- All companies should get tax number within three months of the first sale. Use company number when pay taxation after calculation.
- A company is oblige to submit income tax Malaysia within a year if its paid-up capital is less than RM 2,500,000.
- After filling form C, a company should pay its tax within the first seven months
- A company should also submit tax returns even if it does not generate income
Taking advantage of export, import and income tax open business in Tax-Free Zone. Foreign investors prefer Tax Free Zone, Port Klang of Malaysia to set up the business.
|Nature of business||Taxable income (RM)||CIT rate for this year (percent)|
|Local enterprise||Nil||Twenty four|
|Resident company If paid up capital is more than RM 2.5 millions||First 500K|
|Foreign company||Tax rate||24 percent|
Audit firm in Malaysia
As the Audit Act of 1957, Malaysia companies appoint auditor who is member of MIA. the National Audit Department in Malaysia. Contact S & F Consulting Firm Asia Sdn Bhd to prepare audited accounts.
Labuan company Vs SDN BHD Malaysia Company Registration Process
|Requirement||Labuan||Malaysia Company Registration (Sdn Bhd)|
|Paid up capital||1000000||4000-500000|
|Export Import license||Not need||Require|
|Work permit||250000||500000-1 M|
|Director tax||No need||24 percent|
|Bank account||Easy||Not easy|
With this, most foreigners prefer opening Labuan Companies to enjoy tax and visa.
At least one share holder need to form Private limited company formation in Malaysia.
Yes. foreigner is permissible of private limited company registration without business visa and work permit.
As process of company formation in Malaysia foreign owners can hold full shares. Company can open without local partners .
No need. Company formation in Malaysia is possible without local partners and nominee director.
To meet with all requirements of SSM, by any amount of paid up capital new company register in Malaysia. But, without keeping paid up capital of RM 500,000 company can not list of ESD
Company shares increase filling up Form 24, 11 up on all terms and conditions of government.
Some other articles related to company registration process you may find useful information:-
A-03-13 Tropicana Avenue, No 12 Persiaran Tropicana, Petaling Jaya, Selangor, Malaysia, 47410