Step by Step Guide for Foreigners to Start a Business in Malaysia

14 min read|Last Updated: April 15, 2024|

Want to start a business in malaysia as a foreigner? Entrepreneurial-minded small business owners eyeing international expansion, often find Malaysia an appealing destination to start a company. Due to its vibrant commercial environment, and comparatively lower cost of living.

Moreover, in addition to tax breaks and streamlined registration processes, Malaysia offers incentives and support for foreign businesses. These factors collectively make it an attractive choice for entrepreneurs seeking to establish a presence in Southeast Asia. Additionally, the country’s strategic location and robust infrastructure further enhance its appeal as a business destination.

Can a foreigner own a business in Malaysia?

The answer is a big yes. According to the Company Act 2016, a foreigner is allowed to incorporate a certain type of business entity and solely the entity so long as they have a legitimate residential address in Malaysia.

Which type of business structure is best suited for foreigners starting a company in Malaysia?

The recommended business structure for foreigners starting a company in Malaysia is a private limited company, also known as the term Sdn. Bhd.

Here are some comparisons between private limited company, and other business structures in Malaysiato highlight why private limited company is the best option.

Sole Proprietorship and Partnership VS Private Limited Company (Sdn. Bhd.)

As many might know, most Malaysian prefer to incorporate a sole proprietorship or partnership compared to a private limited Company (Sdn. Bhd.) due to the cheap cost to incorporate and maintain, and easy registration. However, such option is not opened for foreigner as only Malaysian citizen or Permanent Resident (PR) is allowed to operate such business structure.

Other drawbacks that these two business structures are:

  • Owner/Partners are liable towards all the debts accumulated by the business
  • Creditors have the power to sue owners/partners if they filed for bankruptcy in order to claim the debt owed
  • It is not so easy to encourage third party investors or bankers to fund the business

While the cost and annual compliance requirements for maintaining a sole proprietorship or partnership may indeed be lower compared to a private limited company (Sdn. Bhd.), it’s crucial to consider the higher risk of personal bankruptcy for the owner or partners in these structures.

Subsidiary VS Private Limited Company (Sdn. Bhd.)

A subsidiary and a private limited Company (Sdn. Bhd.) are quite similar. However, setting up a subsidiary can be difficult and rigorous compared to incorporating a private limited Company (Sdn. Bhd.). More documents are needed such as:

  • Board of resolution from parent Company to approve the incorporation of a subsidiary Company
  • Memorandum of appointment or power of attorney authorising the person residing in Malaysia to accept the notices on behalf of the parent Company
  • Statutory declaration by the agent of the parent Company
  • Company particulars of parent Company certified by the appointed Company Secretary

Incorporating a subsidiary in Malaysia differs from incorporating a private limited company (Sdn. Bhd.), in that the incorporation fee is dependent on the authorized share capital. For instance, with an authorized share capital of MYR 400,000, the incorporation fee is MYR 1,000. The fee increases with higher authorized share capital.

As for tax treatment, branches are not given the opportunity to enjoy local corporate tax benefits. Thus, they are treated as a non-resident entity whereby the corporate tax rate will be 24% flat.

Branch VS Private Limited Company (Sdn. Bhd.)

As for a branch office, it is considered an extension for a parent Company. That is to say, they are not allowed to engage in any bank account opening without conforming to specific regulations.

  • Use a different company name that is unique and reflects your business activities for the Malaysia market. from parent Company
  • Use different business activities from parent Company
  • Use for long-term

Typically, a branch serves as a means for the parent company to assess and explore foreign markets. Fully owned by the parent company, a branch office operates similarly to a subsidiary but with distinct annual compliance obligations. These obligations entail the filing of an annual return, audited financial statements for the branch itself, as well as audited financial statements for the parent company.

As for tax treatment, branches are not given the opportunity to enjoy local corporate tax benefits. Because, they are treated as a non-resident entity whereby the corporate tax rate will be 24% flat.

Best Industries for Foreign Investments in Malaysia

Based on the information above, potential foreign investors might re-think of their strategy to expand their business from their home country into Malaysia. Do not worry, as Malaysia still offers numerous other industries available for you to venture into. Additionally, the Malaysian Investment Development Authority (MIDA) has listed some incentives for new investments.

Some of the industries are poised for growth, attracting foreign investments and potential for permanent residency for investors.

1. Manufacturing sector

Pioneer Status

A company granted Pioneer Status (PS) in Malaysia benefits from a five-year partial exemption from income tax. During this period, starting from its Production Day, only 30% of its statutory income is taxable. Additionally, any unabsorbed capital allowances and accumulated losses incurred during the pioneer period can be carried forward and deducted from the company’s post-pioneer income for subsequent years. This provision allows companies to offset previous losses and investment costs against future taxable income, thereby facilitating long-term financial sustainability and growth. Moreover, it encourages investment in innovation and development within the Malaysian business landscape.

Investment Tax Allowance

A company awarded Investment Tax Allowance (ITA) in Malaysia receives a 60% allowance on qualifying capital expenditure, including approved factory, plant, and machinery expenses incurred within five years from the initial qualifying expenditure date. As a result, this allowance can be offset against 70% of the company’s statutory income for each assessment year. Any unused allowance can be carried forward to subsequent years until fully utilized, possibly affecting financial strategies for ASEAN companies. The remaining 30% of the statutory income is subject to taxation at the prevailing company tax rate, which ranges between 17% to 24%. This incentive aims to encourage investment in capital assets and boost economic growth by providing tax relief on qualifying expenditure for eligible companies.

2. Agricultural sector

Incentive for food production

Specific incentives are introduced to attract investment into food projects both at the farm level as well as at the production/processing level. Consequently, these incentives will enhance the supply of raw materials for the food processing sector, thereby reducing reliance on imports of such raw materials.

  • A company which invests in its subsidiary company engaged in food production activities, can be considered for tax deduction equivalent to the amount of investment made in that subsidiary for that year of assessment
  • The subsidiary company undertaking food production activities can be considered for full tax exemption on its statutory income for 10 years of assessment for new project or 5 years of assessment for expansion projects

Incentive for Production of Halal Product

The government is also actively encouraging new investments in halal food production and, consequently, aiming to increase the use of modern and state-of-the-art machinery and equipment in producing high-quality halal food that complies with international standards. Moreover, companies that invest in halal food production and have already obtained halal certification from JAKIM are conversely eligible for the investment tax allowance (ITA) of 100% of qualifying capital expenditure incurred within a period of 5 years.

3. Biotechnology industry

  • An exemption of 100% statutory income derived from a new business or an expansion project that is equivalent to an allowance of 100% qualifying capital expenditure incurred for 5 years
  • Concessionary tax rate of 20% on statutory income from qualifying activities for 10 years upon expiry of tax exemption period
  • Exemption from import duty and sales tax on raw materials/components/machineries/equipment
  • Double deduction on expenditure incurred for R&D
  • Double deduction on expenditure incurred for promotion of exports is a significant advantage for companies looking to set up a business in Malaysia.

Malaysia is a country moving towards high-income country by the year 2030. One of the approaches moving towards that goal is by granting direct tax incentives partially or total relief from income tax payment for a specified period for foreign investments venturing into specific industries, which may include eligibility for permanent residency under certain conditions.

Company Types for Foreigners

The most prevalent business structure favored by foreigners seeking to establish a company in Malaysia is the Private Limited Company (Sdn Bhd). You can find out more about the requirements to set up a Sdn Bhd here.

Below are also other options that they are allowed to set up:

What to do after setting up a company in Malaysia as a foreigner?

After starting a company in Malaysia as a foreigner, you will need to adhere to the local regulations that you may not be familiar with. Here, you will find the steps and the business plan that you will need to follow to be fully operational.

Step 1: Opening a Corporate bank account

Once a company is incorporated, the next step typically involves opening a corporate bank account. Amid travel restrictions imposed by the pandemic, most banks have transitioned to online communication with clients. Bankers often utilize their international databases to verify the backgrounds of foreign clients, a practice that underscores the importance of transparency in company incorporation. However, it’s important to note that Malaysia’s bank policies may prohibit certain nationalities from opening bank accounts. For examples:

  • Israel
  • Iran
  • Iraq
  • Serbia

Step 2: Business license

Following incorporation, companies typically require business licenses before commencing operations, including business premise and signboard licenses from state authorities if renting an office. Notably, sector-specific businesses may necessitate distinct paid-up capital requirements.

For instance, when a local company ventures into the wholesale business, it can obtain a Wholesale, Retail, and Trade (WRT) license with a paid-up capital of MYR 250,000. Conversely, however, a 100% foreign-owned company seeking the same license must have a MYR 1,000,000 paid-up capital. Importantly, unless mandated by local authorities, foreign-owned companies are not obliged to appoint a local nominee director despite applying for sector-specific business licenses. This aspect underscores the regulatory distinctions between local and foreign entities, highlighting the nuances of doing business in Malaysia.  This aspect makes Malaysia an attractive location for setting up a business as a foreigner, offering flexibility and ease of operation.

Step 3: Registration of EPF and SOCSO

After establishing a company in Malaysia as a foreigner, the process of hiring local employees entails registering their Employees Provident Fund (EPF) profile within 7 days of the first employment. This can be done either at a physical counter or online through the official website, ensuring compliance with regulations and facilitating seamless integration into the workforce. EPF registration is mandatory for employers to contribute to the employee retirement benefit scheme based on their monthly wages. Subsequently, following the establishment of the company, the next step entails registering the Social Security Organisation (SOCSO) profile within 30 days of hiring the first employee. This can be done via email application to

Furthermore, SOCSO registration is obligatory as it provides social security protection to private sector employees in accordance with the Employees’ Social Security Act 1969. Additionally, compliance with this requirement ensures the welfare and security of the workforce, promoting a conducive working environment.

You can read more about EPF, SOCSO, and other employee contributions in our article here.

Step 4: Registration with Inland Revenue Board (LHDN)

Following the establishment of your company in Malaysia, the next step involves registering your company profile with the Inland Revenue Board (LHDN). This registration is essential not only for completing annual tax filings but also for mandatory monthly tax deductions (MTD) from employees’ salaries. MTD, a mechanism for income tax deduction, aims to lessen the financial burden on employees by deducting a portion of their current remuneration package. These deductions aim to alleviate the need for employees to pay a lump sum when the actual tax amount is determined at the end of the year. Consequently, this system provides employees with a more manageable approach to fulfilling their tax obligations.

Step 5: Annual Business Reporting

Currently, the Company Act 2016 has eased the annual business reporting requirement for private limited companies. Some of the filings to do include:

  1. File annual return according to the Company anniversary date – date of when the Company was initially incorporated. Example: The Company was incorporated in 21.07.2018, the first annual return must be filed by 21.07.2019 or before 20.08.2019 (30 days). Late filing penalty may be imposed if the filing is done after 30 days.
  2. Lodge unaudited financial statement with the Companies Commission of Malaysia – Suruhanjaya Syarikat Malaysia (SSM) is the authority for company registration and shareholder information in Malaysia.. This type of business entity is exempted from preparing an audited report if they meet one of the criteria:
    • Dormant companies
    • Zero-revenue companies
    • Threshold-qualified companies – Revenue < MYR 100,000, total assets < MYR 300,000 and employee < 5 people

File the annual tax return filing with Inland Revenue Board – Lembaga Hasil Dalam Negeri (LHDN) even though the Company was deemed dormant for the annual period

Application of work visa – Employment Pass

Basically, in Malaysia, the Malaysian Development Investment Authority (MIDA) oversees various work visa options tailored to different circumstances, with the Malaysia Employment Pass in particular being the most common. Besides for individuals seeking a long-term stay with the opportunity to invest, the Malaysia My Second Home (MM2H) Programme is a particularly excellent option. Participants in this program are permitted to reside and invest in Malaysia for an extended duration. However, it’s important to note that MM2H participants are generally not allowed to work or be employed in Malaysia, unless they have been issued special work passes by the relevant authorities.

Depending on the type of job and skills, various working passes are issued when obtaining a work permit. These passes are tailored to the specific requirements and qualifications of the applicant, ensuring appropriate authorization for employment in Malaysia.

  • Employment Pass: This pass is issued to employees with specific skills, usually for technical or managerial jobs. The minimum period is usually 2 years.
  • Temporary Employment Pass: Issued for employment for less than 2 years or for jobs with a monthly salary less than MYR 5,000
  • Professional Visit Pass: Issued to foreign nationals who remain employed by the company in the home country but are required by a Malaysian company to provide certain services for a period up to 6 months.

Any private limited Company (Sdn. Bhd.), local and foreign alike is able to apply an Employment Pass for their foreign candidates. You only need to apply for a business license if the authority deems the business is listed for such licenses. The estimate duration to apply an Employment Pass can be 6 months or more, making it an important consideration for those seeking permanent residency in Malaysia.

Tax Structure in Malaysia

In Malaysia, the tax structure is territorial. Although, both residents and non-residents alike are taxed on their Malaysian-sourced income, whereas any foreign-sourced income is normally not taxable. Additionally, this principle applies uniformly to both local and foreign-owned companies alike. Moreover, it underscores the equitable treatment of all entities operating within Malaysia’s tax jurisdiction.

Based on the year assessment (YA) 2020, the corporate tax rate is as follows:

  1. Company with paid-up capital < than MYR 2.5 million
  2. On the first MYR 600,000 profit is taxed at 17%
  3. Subsequent balance will be taxed at 24%

However, for companies with paid-up capital exceeding MYR 2.5 million, the tax rate is flat at 24%. Additionally, this provision applies irrespective of the company’s size or industry.

Our thoughts

The requirements, annual compliance obligations, and costs for establishing a private limited company (Sdn. Bhd.) in Malaysia, tax regulations are consistent for both local and foreign entities. Furthermore, the tax structure is advantageous for such companies, as it utilizes a territorial tax system. Under this system, only income sourced within Malaysia is subject to taxation, while foreign-sourced income remains untaxed.. This demonstrates the transparency of Malaysian government agencies in ensuring a level playing field for incorporation processes between local and foreign entities, ultimately showcasing the country’s welcoming attitude towards foreign investment.


Come down to our office or connect with us virtually for an incorporation assessment today.


Is it necessary for foreigners to reside in Malaysia to start a business?2024-03-07T18:17:16+08:00

While not mandatory for all business types, certain visa options and business structures may require residency or a local representative.

What is the corporate tax rate for businesses in Malaysia?2024-03-07T18:20:42+08:00

The standard corporate tax rate is 24%. However, SMEs with paid-up capital of RM2.5 million or less benefit from a 17% tax rate on the first RM600,000.

Are there any restrictions on foreign ownership in Malaysia?2024-03-07T18:22:22+08:00

While Malaysia is generally open to foreign investment, certain sectors have specific foreign ownership limits or require prior regulatory approvals.

Do certain Sdn Bhd Companies require more Licenses than others?2024-03-07T18:23:13+08:00

The licenses required by any Sdn Bhd company depend on what business activities are conducted by the company in question. Therefore, the number of licenses required will vary from company to company.

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  1. Profile Picture For PHP
    Justus May 10, 2022 at 10:58 pm - Reply

    Hello, My name is Justus,
    I will like to ask what document and licenses do u need to start a car rental business in Malaysia.

    • Profile Picture For PHP
      Paul Hype Page May 17, 2022 at 9:57 am

      Hi Justus, to better advise on the licenses and documents to start your company, we would appreciate if we can do a call instead. This is to have a better understanding of your business and provide the necessary information more accurately.

      You can schedule a time via our contact form here:

      Alternatively, you can leave us a message on WhatsApp and we will respond soonest:


  2. Profile Picture For PHP
    Mandasari August 16, 2021 at 11:33 am - Reply

    Hi, my name is Manda,
    My company is in Korea and Indonesia, and we have a plan to open a company in Malaysia (Kota Kinabalu). Since we didn’t have a team in Malaysia we need a consultant to guide us for the step by step how to open a company in Malaysia (such as what the document we need, how to get the employee, and many more). For the basic first, can you give me a hint of what document or what we have to do to open a company in Malaysia?

  3. Profile Picture For PHP
    Eskulin March 24, 2021 at 10:24 pm - Reply

    Hi there!
    Is it possible to open a business (small restaurant, bistro/café or food truck) as a foreigner in Malaysia?
    I’m confused because I found this article

    Now I’m not sure about it. Need more information regarding this

    Thank you

  4. Profile Picture For PHP
    Kian Seng March 17, 2021 at 11:36 am - Reply

    Hi, I’m Kian Seng. I’m planning to set up a cosmetic factory in Malaysia and partnership with Foreigner. What do I need to prepare? Do we need to apply for a special license to set up a factory? How about the partnership with Foreigner?

    • Profile Picture For PHP
      Paul Hype Page March 26, 2021 at 9:38 am

      Hi Kian Seng,

      Feel free to interact with us in the forum if you need further clarification. We will be happy to assist.

      Best Regards,

  5. Profile Picture For PHP
    neha March 12, 2021 at 4:47 pm - Reply


    as a foreigner looking to start a contracting + renovation business in KL. Our head office is in SG.
    – is SDN BHD is the best structure
    – Do i need the wrt license or any other licenses or just incorporation will help me start

  6. Profile Picture For PHP
    Awadhesh Kumar March 11, 2021 at 1:13 am - Reply

    Dear Sir,
    i Am Very Excited To Know That If i Am Worker In A Malaysian Retails Company, Is It Possible To Have Any Chances To Register A Company/Business And Do Side Business Under My Own Company Name ?
    Looking Forward For Your Answer.

    Thank You So Much For Have This Types Of Services And I Hope Best Wished For You All Guys.

    Thanks & Regards

  7. Profile Picture For PHP
    Kate February 1, 2021 at 3:12 pm - Reply

    Hi, we are planning to open a private limited company and its home-based bakery. How much is the paid-up capital?

  8. Profile Picture For PHP
    Chong November 30, 2020 at 10:35 pm - Reply

    Hello, I’m Chong. We would like to set up a company in Malaysia with 100% shareholder will be a singapore registered company, 1 foreigner director and 1 local malaysian director, carry out IT consultancy business in Malaysia.

    – Will our company needs to apply a WRT licence? If yes, is the WRT licence needed whether the business office location is in peninsula malaysia / sabah or sarawak?
    – What is the minimum paid up capital for the sdn. bhd. to apply an employment pass for the foreigner director?

    Thank you.

    • Profile Picture For PHP
      Tiwi December 4, 2020 at 1:40 pm

      Hi Chong,
      To set up a 100% IT consultancy company in Malaysia, you do not need to apply for a WRT license regardless your office is based in the peninsular or Malaysia’s Borneo. The minimum paid-up capital for a Sdn. Bhd to apply for an Employment Pass (EP) for a foreign director is RM500, 000.

      Please contact us via Paul Hype Page to discuss further.

  9. Profile Picture For PHP
    Crystal November 17, 2020 at 10:05 am - Reply

    Hi, our company has 2 directors, both of them are Singaporean.
    Previously, we have 1 Malaysian director, but she already resigned in 2018. We try to renew business license as MPSJ business license still shows her name on the license. Is there any penalty for the late update in MPSJ?
    If update in MPSJ, need to fill in the Lampiran A. Lampiran A is required Visa for foreigner, but Singaporean no need Visa. How should I do?
    Please advise. Thanks.

    • Profile Picture For PHP
      Tiwi November 18, 2020 at 8:57 am

      Hi, you should make necessary changes to company profile before renewing license as your ex-director no longer represents your company.
      As for the penalty, it will depend on MPSJ. Please approach them for clarification.
      There should not be a need for visas for foreigners if you are not physically living and working in Malaysia.
      Do contact us via WhatsApp at +65 8483 3084 or email us at for further assistance.

      Please contact us via Paul Hype Page to discuss further.

  10. Profile Picture For PHP
    Wael November 13, 2020 at 6:06 pm - Reply

    What is the minimum capital requirements for a limited liability company fully owned by a foreigner?

    • Profile Picture For PHP
      Tiwi November 17, 2020 at 10:28 am

      Hi Wael,
      We are sorry we cannot advise you since we do not provide limited liability company incorporation. We are happy to assist you with a private limited company incorporation

      Thank you for your question.
      Warm regards

  11. Profile Picture For PHP
    CH November 9, 2020 at 4:21 pm - Reply

    What is the min requirement to set up a 100% foreigner owned company and a company that has both foreigner and local?

    • Profile Picture For PHP
      Tiwi November 13, 2020 at 3:42 pm

      Hi CH, minimum requirements regardless of foreign or local owned company is that you must have one secretary, one registered office address, and a local residence.
      If it is 100% foreign owned company, our incorporation package is RM2,548.
      If the company has both foreigner and local, it is RM2,048.

      Please contact us via Paul Hype Page to discuss further.
      Thank you for your question.
      Warm regards

  12. Profile Picture For PHP
    Jane October 25, 2020 at 11:25 pm - Reply

    Hello, I have an employment pass for a company in KL. Can I run a side business? Thinking of starting one in gift hampers. I’m British.
    What capital is required?
    What’s the cost of setting up a business here?
    My husband doesn’t have a degree but is a graphic designer. Is there a way of him getting a work visa?

    • Profile Picture For PHP
      Tiwi November 6, 2020 at 11:50 am

      Hi Jane,

      Yes, you can run a business in Malaysia and the company can be 100% foreign owned. Our service fee is RM2,048.
      We can assist your husband to get employment pass in Malaysia.

      Please contact us via Paul Hype Page to discuss further.
      Thank you for your question.
      Warm regards

  13. Profile Picture For PHP
    Meheruna Alam October 23, 2020 at 11:19 pm - Reply


    Hello, this is Meheruna, Im expat here. We have a online home food delivery app setup at Bangladesh. We want to expand or start our home food delivery service here through our app. As being a foreigner, is this possible? If its possible, then what would be the best option? A. Register company here? B. Have a branch/francise of Banladesh registered company here? Can you please give us some idea?

    • Profile Picture For PHP
      Tiwi November 6, 2020 at 11:49 am

      Yes, you can open a company here. The company can be 100% foreign owned. We can assist you to set up a private limited.

      Please contact us via Paul Hype Page to discuss further.

  14. Profile Picture For PHP
    Alavi August 23, 2020 at 6:55 pm - Reply

    Hello, I am interested to register an IT consultancy business in KL. I would also like to know if it’s possible to get a employment visa under my registered company in KL and what is total cost to get everything setup. Also how much paid up capital is required for IT consultancy. Thank you

    • Profile Picture For PHP
      Tiwi September 10, 2020 at 9:39 am

      Dear Alavi,

      Thank you for contacting us.

      We are happy to assist you with your company incorporation and employment pass application. The minimum paid up capital is RM500,000. Please refer to the cost details below.
      Package for foreign entrepreneurs relocating to Malaysia: Company Incorporation with Employment Pass

      Company Registration: RM100
      Registration Fee (Government Fee): RM1060
      Appointment of Company Secretary (for 1 year): RM600
      Employment Pass: RM6600
      Registered Office Address (for 1 year): RM288


      Additional services (Optional)
      – Bank Account opening RM2,500 (NO NEED TO TRAVEL TO MALAYSIA)
      – Malaysia residential address (for Directors/Shareholders) RM500
      – Corporate shareholders
      – Additional Company Secretary services
      – Dependant Pass applications

      *Kindly note that a residential address is required by law for all Directors and Shareholders.
      * To apply for EP, registered company must have corresponding business licenses

      Please contact us via Paul Hype Page to discuss further.

      Thank you for your question.
      Warm regards

  15. Profile Picture For PHP
    Soud Sk Minhajul Islam August 14, 2020 at 12:29 am - Reply

    Hi Sir
    I want to open a restaurant i KL .So what are the process i need to do .
    And how i get business visa to do my restaurant business.

    • Profile Picture For PHP
      Tiwi September 10, 2020 at 9:32 am

      Dear Soud,
      Thank you for contacting us.
      Please be informed that to open a restaurant you must first incorporate your company. We are happy to assist you with the incorporation of the company. The company can be 100% foreign-owned and you’re not required to be physically present in Malaysia.

      Please contact us via Paul Hype Page to discuss further.

      Thank you for your question.
      Warm regards

  16. Profile Picture For PHP
    Omar Al Abri August 9, 2020 at 4:42 am - Reply

    I’m planning to open treading company ( export and import) and I’m from Oman
    So how much will cost me to open and run the company

    • Profile Picture For PHP
      Tiwi September 4, 2020 at 10:26 am

      Hi Omar,

      We can assist you to open a company in Singapore, Malaysia, and Indonesia. Which company you’re interested to?


      Thank you for contacting us.

      We are happy to assist you with your incorporation of Sdn. Bhd. in Malaysia.

      Please be informed that the company can be 100% foreign owned and you are not required to be physically present in Malaysia as it can be done online using our in-house system – iBizfile. 😊

      To understand what is required for incorporation/to START your incorporation, please find the link below.

      To understand what is required for your employment pass/to START your employment pass, please find the link below.

      Here is a Demo Video to show you what our process looks like: – MSIA INCORP

      Please contact us via Paul Hype Page to discuss further.

      Thank you for your question.
      Warm regards

  17. Profile Picture For PHP
    Brian August 8, 2020 at 4:49 pm - Reply

    Hi. I run a cafe (sole proprietor) and would like to convert this into a Sdn Bhd with three foreign partners who currently hold work permits in Malaysia (in an unrelated industry). Is this possible, and if so, can they then obtain employment passes? If yes, is this something you can do?


    • Profile Picture For PHP
      Tiwi September 4, 2020 at 10:24 am

      Hi Brian,

      We can assist to apply the employment pass category I

      Kindly note the following requirements for an Employment Pass application:

      Individual requirements:
      – Have a job offer in Malaysia OR incorporate your own company in Malaysia.

      – Work in a managerial, executive or specialised job.

      – Have acceptable qualifications, usually a good university degree, professional qualifications or specialist skills.

      The below are the different categories of an Employment Pass. Kindly note that we only provide services for a category 1 EP.
      Category I (EPI) – for applicants who earn a fixed monthly salary of at least RM10,000 and a valid employment contract for a minimum of 5 years.

      Category II (EPII) – for applicants who earn a fixed monthly salary of at least RM5,000 up to RM9,999 and a valid employment contract of 2 years.

      Category III (EPIII) – for applicants who earn a fixed monthly salary of between RM3,000 to 4,999 and a valid employment contract period not exceeding 12 months.

      Company requirements:
      – The company must have the relevant business licenses
      – The company should be operational for a recommended period of 3 to 6 months
      – The company must have the minimum paid up capital in the bank account

      Please contact us via Paul Hype Page to discuss further.

      Thank you for your question.
      Warm regards

  18. Profile Picture For PHP
    Lyssya lily July 4, 2020 at 2:00 am - Reply

    How much is the minimum paid up capital for a foreigner to open a hair salon biz in Malaysia.

    • Profile Picture For PHP
      Tiwi July 15, 2020 at 9:35 am

      Hi Lyssya Lily
      The minimum paid up capital varies based on your business and other factors. In order to give you the most relevant advice, we would need to understand more on your business plans. To discuss further, please contact us at Paul Hype Page.

      Thank you for your comment.
      Warm regards

  19. Profile Picture For PHP
    Lyssya lily July 4, 2020 at 1:51 am - Reply

    I have a friend from manila who would like to open a hair salon in Johor Malaysia. What procedure or document requirements does he need to do.

    • Profile Picture For PHP
      Tiwi July 15, 2020 at 9:34 am

      Hi Lyssya Lily
      In order to open a hair salon in Johor, your friend needs to first incorporate a company in Malaysia. We are able to help with that.
      Our package for locals is as follows:

      Malaysia Company Registration RM 100
      Registration Fee (Government Fee) RM 1060
      Appointment of Company Secretary (for 1 year) RM 600
      Registered Office Address (for 1 year) RM 288
      (Additional RM500/annual for shareholder/director that need the use of Malaysia resident address)
      Total RM 2,048
      After incorporation, your friend would require a number of licenses, depending on his specific business requirements. We are also able to assist with that. To discuss further, please contact us at Paul Hype Page.

      Thank you for your comment.
      Warm regards

  20. Profile Picture For PHP
    MUHANAD BADER June 21, 2020 at 2:54 am - Reply

    i wondering if i can open branch in Malaysia my company head office in united kingdom UK ?
    the branch in Malaysia just office do Consults and online marketing can be hire worker from out Malaysia to work inside ?
    what the capital require from Malaysia government to start business .
    kind regards

    • Profile Picture For PHP
      Tiwi July 6, 2020 at 11:37 am

      Hi Muhanad Bader
      If you open a branch office in Malaysia, you will not be able to conduct and sales activities or make private purchases. For your needs, it would be best to incorporate a Sdn Bhd. This allows your Malaysian office to conduct any and all business activities it will be required to perform.
      Our fees for such a package would be
      Incorporation with Employment Pass
      Malaysia Company Registration RM100
      Registration Fee (Government Fee) RM1060
      Appointment of Company Secretary (for 1 year) RM600
      Application for Employment Pass (EP) RM6600
      (Do not include Government Fees)
      Registered Office Address (for 1 year) RM288
      Total RM 8,648
      This package includes the application for employment pass, which will allow you to hire an employee from outside of Malaysia.
      The minimum paid up capital is RM1.
      To facilitate further discussion, please contact us at Paul Hype Page.

      Thank you for your comment.
      Warm regards

  21. Profile Picture For PHP
    Li Fong June 20, 2020 at 3:17 pm - Reply

    Hi Paul,
    My company is a Renovation Contractor in Singapore and is thinking of setting up a manufacturing factory in Johor for manufacturing furniture & fixtures of wood (including upholstery).

    Can a foreign company set up this type of factory in Malaysia?
    Can this factory by 100% owned by foreigner?
    If not, What is the % shareholdings between foreigners & Malaysians?
    Must the Director be a local Malaysians (Malay)?
    What is the minimum investment?


    • Profile Picture For PHP
      Tiwi July 6, 2020 at 11:10 am

      Hi Li Fong
      Yes it is possible to set up a 100% foreign owned company in Malaysia, as a Sdn Bhd. If your directors are not residing in Malaysia however, you will need a Malaysian resident to be a director as well.
      The minimum paid-up capital is RM1. This amount can be changed later.
      To facilitate further discussion, please contact us at Paul Hype Page.

      Thank you for your comment.

      Warm regards

  22. Profile Picture For PHP
    Supantha June 18, 2020 at 3:16 am - Reply

    Is the Sdn Bhd 100% foreign ownership limited to those few categories ? Mentioned –
    Petroleum, Oil and Gas
    Banking and Finance
    Tourism Outbound and Ticketing

    Can it be applied for trading and retailing sector too ? Import and Export as well as domestic retail

    • Profile Picture For PHP
      Tiwi June 26, 2020 at 9:39 am

      Hi Supantha

      All Sdn Bhd’s can be 100% foreign owned. However, if you will be partaking in industries such as Petroleum, Oil and Gas, Banking and Finance etc., and you’d like to apply for licenses under the relevant authorities, you are likely to require local shares and local directors.
      If you are operating on a smaller scale in industries like Education (for example, a tuition centre), or Tourism (for example, a travel consulting agency), you may have 100% foreign owned shares and directorship.
      If you would like our assistance in that matter, or you have further questions, please contact us.
      Thank you for your question and hope to hear from you soon.
      Warm regards

  23. Profile Picture For PHP
    Syed Md Musfique February 24, 2020 at 9:54 pm - Reply

    Hi im Syed Md Musfique.
    would like to invest in runnining resturant in kualampur, i get a visa for one month should i elligible.
    please get me advise.

    • Profile Picture For PHP
      Tiwiyah Kumaran March 20, 2020 at 9:40 am

      Hello Syed,

      It is possible for a person who holds a work visa which is valid in Malaysia to start a restaurant there. However, certain licenses which will depend on the nature of the restaurant will be required before it may be established.
      Contact us at any time if you would like to know more about this topic.

  24. Profile Picture For PHP
    sumit January 31, 2020 at 5:07 pm - Reply


    We would like to set up a company in malaysia and shall do the business of scrap metal import and sell locally or will do export to other countries

    • Profile Picture For PHP
      Tiwiyah Kumaran February 12, 2020 at 10:44 am

      Hello Sumit,

      Could you please provide us with further information? We are interested in finding out more about your plans.

      Thank you.

  25. Profile Picture For PHP
    Mohammed Raees November 17, 2019 at 9:13 pm - Reply

    Hi. I am an Indian and specifically looking for buy and run car wash and detailing centres in and around KL. I saw already running businesses for sale. I am foreigner to Malaysia only visited this month as tourist. How I can start a company for this specific business, is it allowed to foreigners. And how about me getting a visa so that I can come there and handle this business on my own. Kindly provide the as much details as possible. Thanks.

    • Profile Picture For PHP
      Tiwiyah Kumaran November 25, 2019 at 9:52 am

      Hello Mohammed,

      As a foreigner who would like to start a business in Malaysia, you will need to first obtain an Employment Pass. Once you have done so, you may begin with the incorporation of any business of your choice.

      Please contact us for further information on incorporation in Malaysia or the Employment Pass.

      Thank you.

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