Foreigner To Setup A Company in Malaysia

Foreigner to Setup Company in Malaysia

Many foreigners were confused as to which is the right legal entity they should have to start their business in Malaysia. There are overwhelming questions facing by foreigners especially when Malaysia is totally new to you.


The key concerns of the Foreigners

  1. My business nature – is it eligible for foreign ownership?
  2. Which is the best recommended tax structure for my business?
  3. What licenses shall I get and how I can get the trade license for my business?
  4. What kind of set-up is suitable for my application of licenses and work visa in future?
  5. What are the requirements and compliances for renewal of trade license, work visa, etc?
  6. What are the compliance I need to meet to maintain the company status every year?
  7. Shall I comply with any legal obligation to hire Malaysians and Expatriates?


The Type of Business Entities in Malaysia for Foreigners – What are the stages?

Best to avoid shocks during the journey of the full process – finally discovered that the business structure formed is not eligible for successful approvals for each stage from licensing to visa for you and your expatriate’s employees. The importance of setting up the right business entity for foreigners begins at first step, ensuring all profiling, documentations, each stages connected to each, well presented to the following authorities for the 5 initial stages:

  • Registry Commission for your Company Entity (Companies Commission, Labuan Financial Authority, Malaysia Investment Development Authority, etc)
  • Multiple Trade Licenses from Local Town Council, Ministry Trade Consumerism, Tourism, Central Bank, Education, Transport authorities, etc.
  • Letter of Recommendation for relevant authorities to boost your application.
  • Expatriate Work Visa from the Immigration Department of Malaysia.
  • Compliance and maintenance keeping company status active (Company Commission, Company Secretary, Auditor, Accountant and Tax Agencies)

Each authority has their own set of requirement on profiling, setting and documentation. To minimize risk and cost, it is advisable to set the right profile that enable acceptance of all authorities for all applications. Getting it right from the first step is crucial to enjoy hassle free, minimize cost and avoid stressing moments in the whole process.


The Type of Business Entities in Malaysia for Foreigners – Which one is for you?

Which one is right for you? Currently, the most common business entity adopted by foreigners in Malaysia is as follows:

  • Malaysian Sdn. Bhd. Company
  • labuan International Business
  • Regional/ Representative Office

Disregards where the location of your business, most trade licenses and work visa applications will be handled by relevant authorities with head their quarters situated in Kuala Lumpur, capital city of Malaysia.