Under the Company Commission of Malaysia (CCM), all foreigners only are allowed to register a private limited by shares (Sendirian Berhad – “Sdn Bhd”) company in Malaysia. Foreigners are not allowed to register sole proprietor, enterprise or LLP companies in Malaysia, these entities are meant for Malaysian only.
No. there is no limitation upon the citizenship of the person be appointed as shareholder for a business.
No. Not necessary as the company secretary or the local agent appointed can provide the incorporation while you are in your home country.
The most common industry license needed by foreigners is Wholesale, Retail Trade WRT License. This license is applicable to the non-resident company (100% foreign ownership) permission to participate in retail, franchise, restaurant, trading, import, export, and consultancy businesses.
The WRT license will only be approved by WRT license approving authority is the Ministry of Trade and Consumerism of Malaysia for “unique” types of trade.
The company minimum paid-up capital requirement for all categories of WRT license application is RM1 million, with company full set-up with valid tenancy agreement and phone line.
For newly set-up company, may be able to submit with a business plan and investment plan in Malaysia prior setting the office.
The processing time for the approval is about 1-2 months and may take longer if inspection of office is required.
The types of offences convicted by court that disqualifying a person from being a director are offence related to the promotion, formation or management of corporation, offence involving bribery, fraud or dishonesty or any offence under Section 213, 217, 218, 228 and 539 Companies Act 2016.
While, the restrictions are the person is disqualified from being a director and prohibited from taking part directly or indirectly in the management of any company.
The requirements for foreign director/member are he/she must be above 18 years old and those who named as the director of company should have a principal or only place of residence within Malaysia (Section 196 (4) (a) of the Companies Act 2016).
As per Section 259(1) of the Companies Act 2016, the private company should submit the Financial Statement to the Registrar within 30 days from the financial statement and reports are circulated to its member.
While according to Section 259(3), every officer who contravene this section commit an offence and shall on conviction, be liable to a fine not exceeding RM50,000. In the case of a continuing offence, a further fine not exceeding RM1,000.00 for each day during which the offence continues after conviction.