With its unique position right in the heart of Asia, starting a business in Malaysia is one of the best decisions you could make for your business.
Strategically located next to other leading markets of Asia in the likes of Singapore and Indonesia, Malaysia’s strong economic growth and stability has been a source of major attraction over the years.
As one of the most vibrant countries in Asia, Malaysia offers many advantages as an investment destination and starting your own business here.
This has been confirmed by its robust growth in private investment in the country, despite the change of the government in the which has expanded at a compounded General Election and also the 1 Malaysia Development Berhad saga.
Entrepreneur is sure to find what they’re looking for right here in Malaysia. But the question is, what types of businesses in Malaysia can you get yourself involved in and get yourself to invest in? Considering the fact that Malaysia offer opportunity to foreigners in comparison to their own citizens more, there are a lot of opportunity for a foreigner to start their company. From oil and gas to something as simple as starting a Public Relation agency, here we talk about how to start up a Trading Company in Malaysia.
Benefits of Registering a Trading Company in Malaysia
Asia has some great countries to consider for a foreign investor who wants to set up a base of operations in this region.
Friendly and hospitable, Malaysia has successfully attracted many foreign to venture into the trading business into the country over the years.
Among the benefits to registering a trading company in Malaysia are:
- The ease of registering a business. If all your paperwork is in order, it can be done in as quickly as a week.
- Its strategic location makes it easily accessible to other ASEAN economies
- There’s no restriction on foreign shareholding, which means businesses in Malaysia can be 100% foreign owned.
- Malaysia is a much more cost effective alternative compared to its neighbour, Singapore. Especially if you’re considering the cost of labour.
- English is widely spoken as a business language, so communicating locally is not a problem.
- Opening a bank account in Malaysia for corporate use is a relatively straightforward process. Plus, Malaysia is home to some of the world’s major banks
- Malaysia has several liberalisation programmes which welcome foreign investment into the country several large sectors.
- It has a highly developed infrastructure in both transport and telecommunications.
- It has a sound political environment and legal framework which governs the country.
- Labuan is a highly regarded offshore company jurisdiction if you’re considering setting up an offshore company in Malaysia.
- The Labuan International Business and Financial Centre offer foreign investors attractive offshore company benefits. Many investors also look into setting up their businesses in Labuan
- Its world class education system makes it ideal for investors looking to migrate with their families
- With the ample of workforce in Malaysia, it is easier to find a professional staff here
Basic Requirements to Set Up a Trading Company in Malaysia
As a foreigner, you must set up a Private Limited Company (identified through the words Sdn. Bhd) as it is the most common business vehicle in Malaysia for starting own business.
The basic requirements to set-up a Locally Incorporated Company under Companies Act, 1965 are the same for both Malaysian and Foreigner setup:
- One subscriber to the shares of the company (Section 14 CA);
- One resident director (Section 122); and
- One company secretary who can is:
- An individual who is a member of a professional body prescribes by the Minister of Domestic Trade Cooperative and Consumerism; or
- An individual licensed by the Companies Commission of Malaysia (SSM)
- A minimum paid-up capital of RM1million
Both the director and company secretary shall have their principal or only place or residence within Malaysia.
Wholesale, Retail Trade (WRT) License
The most common license required for a foreign-owned company is WRT license. Before you even plan to venture into the trading industry, you must first obtain this license.
This WRT license is applicable to any Foreign Participation (i.e. foreign equity at 51% and above) in the Malaysia Distributive Trade Services include wholesalers, retailers, franchise practitioners, direct sellers, suppliers, who channel their goods in the domestic market, and commission agents or other representatives including those of international trading companies.
The WRT license is required by all the said business sectors before they can apply for a Malaysian Employment Pass.
For the WRT license application, the minimum paid up capital requirement is RM 1 million, with company full set-up i.e. with business premises supported with a valid tenancy agreement, phone line and etc. Failing which, and if fraud is detected, the consequences will result in jail term.
Paul Hype Page & Co – SSM service provider and Asean Chartered Accountant.
Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia
Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.
How we can help you:
We will call you back, please click below link and make appointment with our Sales consultant:
Step 1- Listen to your Business plan and Relocation needs.
Step 2- Analysis your Malaysia Tax Planning
Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa
Step 4- Arrange for your Spouse and Children Visa
Step 5- Assist as your company to hire staffs and handle all HR matters
Step 6- Every financial year end, we assist you with your yearly SSM Finanical and Tax Compliance
Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.
Get in Touch with Us Today.
Paul Hype Page