Once you have chosen Malaysia as your preferred investment hub, there are a few investment factors that you must consider.
Setting a company in Malaysia as an outsider will require you to understand that shares will limit the company. Besides, you also need the services of a licensed company secretary to form a company in Malaysia as Sdn Bhd (Sendirian Berhad).
You should note that all businesses and industries in Malaysia allow for a hundred percent ownership by foreigners. There are industries, known as specialized industries where you will be required to collaborate with a local.
Examples of specialized industries include:
Depending on the prevailing economic scenario in Malaysia, the list of specialized industries may vary from time to time.
Incorporate a Malaysia Company-Type of Company
For an investor looking to set up a Malaysia Sdn Bhd, you will find that there are investment categories to choose from, depending on your permit application.
- 100% Foreign Owned
If looking to start a business that is a hundred percent foreign owned, you would need a minimum capital of RM500, 000 for consultancy and advisory businesses.
For import, export, trading and restaurant businesses, investors need RM 1million or more. As a Malaysian foreign shareholder, you need to have a business concept that is unique, and which will benefit Malaysia’s economy.
- Joint Partnership With a Local( Minimum Fifty Percent Stake)
Partnerships require a minimum capital injection of RM 350, 000 and should have an authorization capital of RM 500, 000.
Malaysian investors need to take the following steps during the incorporation process:
- If you have a business that is a hundred percent foreign owned, you need to look into your scope of business activities with your advisors
- Name the shareholders and business directors
- Recommend three company names, and perform searches so as to check whether they are available
- Once the selected name is confirmed, prepare all the relevant business documents as well as the list of shareholders and directors
- Send the incorporation documents to the Commission of Companies in Malaysia for approval
- Once the documents get approved, you will receive a certificate of registration
To incorporate a Malaysia company Sdn Bhd, you need to meet the following requirements;
- Have a minimum of two directors
- Minimum of two shareholders
- Make a decision on the ownership structure–Whether it will be a joint partnership or a hundred percent foreign owned. The decision made will affect the paid up capital
Once incorporated, the Malaysian company will have a name that ends with Sdn Bhd and means that it is a limited company.
Upon receiving the incorporation certificate, your business will be expected to provide its registration number in all its official communications, business cards as well as any documents that it sends out.
More information on setting a Sdn Bhd company in Malaysia.