1. What kind of a business entity can a foreigner register in Malaysia?
Foreign investors are only allowed to set up private limited companies, also called Sendirian Berhad (Sdn Bhd) companies. Only resident Malaysians are allowed to set up sole proprietor or public liability companies. However, a foreigner can register a 100% foreign owned business with a minimum RM500,000 paid-up capital depends on the nature of business. For retail, wholesale and distributive business natures, the 100% foreign ownership Sdn Bhd Company will be subjected to Ministry of Consumerism and Trade and only “unique” (businesses that local Malaysians do not have the knowledge or skills) business will be granted, this is to protect Malaysians opportunities and competitions. For some business nature, the paid capital would higher to meet the necessary requirement of the relevant authorities to issue the trade license or work permit for your business.
2. What you need to fulfil before a registering a Malaysia company?
- Propose 3 names and search to confirm availability
- Define the nature of your business activities
- Decide on your shareholding structure (minimum one shareholder required)
- Decide on key positions of directors (minimum one director)
- Prepare the necessary incorporation documents
3. How many business activities/natures should be selected?
The maximum business activity/nature required by a company is three. CCM will not allow for a company to have more than 3 business activity/nature.
4. What is meant by Name Search and Name Reservation?
A Name Search is a process of using SSM MyCoID System as an initial step to ensure that the desired company name is available. This is only a preliminary Name Search. Final approval of the name is granted by SSM upon review of Name Reservation Form. While Name Reservation is a process of submission a form to SSM for company name approval and reservation. Filing a name reservation will prevent another company from forming with that name.
5. What are the common reasons that the proposed name application will be rejected by SSM?
- Proposed company’s name is similar to those existing ones and may cause confusion to the public (unless a consent letter is granted).
- Proposed company’s name is similar to the former name of existing company and may create undesirable confusion to the Public members.
- Proposed company’s name is prohibited by the Companies Act 2016 or any other relevant Acts.
- Proposed company’s name is undesired for use as company name, for example, Ekor Ayam Sdn Bhd.
6. Does a person need working visa, PR status or etc to be a Director?
The Companies Act 2016 stated that need a minimum of 1 Directors in a company. For Foreigner the requirement is that the Director must be a resident or have primary place of resident in Malaysia. The law however does not say you need working visa, PR status or etc. to be a Director. So, all you need to show is you have a local correspondence address. But here is where it gets a bit tricky, yes you can register as a Director but when performing your duties as a Director, the law will deem that you are working and thus you will need a working visa, business card or etc.
7. What are the Capital requirements for company when applying working visa/permit?
the minimum paid-up capital requirement to set-up a Company is RM1, but you will need to have the minimum paid-up capital to apply for working visa/permit. The company eligibility criteria as below:
- You need to have a private limited company (example: ABC Sdn Bhd)
- Company paid up capital requirement:
- 100% Equity local owned: RM250,000;
- Joint venture (minimum foreign equity is 30% shareholding in the company): RM350,000; or
- 100% Equity foreign owned: RM500,000.
- For Equity Foreign-owned companies operating in wholesale, retail and trade (restaurant): RM1,000,000.
8. What is the Government fee for company registration Malaysia?
The Government fee charged by Company Commission Malaysia (CCM Malaysia) involved are as follows:
- RM50 – Reservation of Name for 30 days only
- RM1,010.00 – Government Fees
9. How long is the incorporation process company in Malaysia?
The entire incorporation process in Malaysia will take about 3-7 working days to complete. This includes registering your business with Suruhanjaya Syarikat Malaysia (SSM), the national regulatory body for Malaysia company registration. The incorporation time frame would depend greatly on the accuracy and completion of the documents and information provided. The speed of the process will also depend upon SSM’s MyCoID online system.
