How a Foreign Company Owner Can Relocate a Company to Malaysia
The company owner has to first establish if products or services the company is dealing in are allowed to be sold in Malaysia so as to know whether it is possible to go ahead and relocate to the country. This is because most countries only allow specific foreign industries to invest in the country. Those allowed to do so gain acceptance based on the economic benefits these industries bring to the country.
However, there is usually no such limitation imposed on the establishment of foreign companies in Malaysia. This is because the government of Malaysia has always strived to boost the country’s export levels, exchange of knowledge with other countries, and employment rate. As a foreign company owner, however, one has to register with complete foreign ownership as a private limited company in Malaysia. Doing so will allow the owner to acquire a business license. For this business license to be acceptable, the company has to prove that it will have a positive impact on the economy of Malaysia. Once the registration has been deemed to be successful, the company would then be able to relocate into the country.
What Must Be Done upon a Foreign Company’s Relocation to Malaysia
Upon successful relocation to Malaysia, a company has to find out the terms and conditions under which foreign companies operate in Malaysia. For instance, the foreign company needs to ensure that it creates employment opportunities for Malaysian citizens to work in this company. This is because one of the most important reasons why the government of Malaysia encourages the entry of foreign investors into the country is because doing so boosts the economy of the country. One of the ways in which this economic development can be achieved is through creation of employment for local citizens.
Every foreign company is to establish a representative office in the country. This is to be done to assist the head office in market research. In Malaysia, market research involves studying the market trends in Malaysia, assessing development of the products sold there, business planning, and determining what after-sales services will be offered. Most foreign companies cannot actively engage in both trading activities and revenue generation at the same time; thus, the use of a representative office serves as a major step towards the fulfillment of the company’s business goals.
If you have already relocated the foreign company to Malaysia and need assistance with the setup of a representative office, we at Paul Hype Page & Co are able to help in this matter. We will guide you through the entire process in such a way that you will face as few problems as possible when it has been completed.
When setting up a company in Malaysia, the company owner has to pay for any registration charges. The value of such charges will depend on the demands of each local authority figure involved. The company must also acquire all the necessary business licenses, open a local bank account for the purpose of conducting financial transactions, and become familiar with the tax regulations so that the company will be compliant with all of Malaysia’s tax laws.
Laws that Govern Relocated Foreign Companies in Malaysia
Due to the relocation and establishment of many foreign companies in Malaysia, the country’s government established many laws which had an effect on how these companies operate. One such law related to the role of the agent. Before a foreign company is allowed to operate in Malaysia, it has to appoint a Malaysian agent. The agent is to be answerable for all the activities conducted and decisions made by the foreign company. This agent is also responsible for all the charges which are imposed against the company.
Every foreign company is to have a registered office in the country. From this office, all information regarding the operations of the foreign company is to be addressed. This registered office is to always be available to the general public during working hours.
Foreign companies which have branch offices in Malaysia are required to pay corporate tax as a non-resident company. The branch office is also disqualified from receiving any local tax incentives.
Matters related to corporate tax, tax incentives, and other aspects of taxation in Malaysia can sometimes be difficult to understand.
All foreign companies in Malaysia have to carry out their operations through a company which has been locally incorporated in Malaysia. This must be done to allow the foreign company to carry out all of its legal retail or wholesale trade activities in a manner approved by the Malaysian government.
For a company to be successful in its operations, it has to carefully explore its market and take all opportunities which present themselves, whether locally or in a foreign country such as Malaysia. When a company gains access to opportunities providing promising returns in a foreign country, it should consider relocation after taking into consideration all the laws governing this relocation. Companies which relocate to Malaysia after doing so will be certain to find corporate success there.