Business Entities in Malaysia for Foreigners


The Type of Business Entities in Malaysia for Foreigners - The Concerns?

  Many foreigners were confused as to which is the right entity they should have to start their business in Malaysia. There are overwhelming questions facing by foreigners especially 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 nature?
  3. Getting the right trade licenses for my business or if my business need it all?
  4. What kind of set-up I need to comply ready prior to my application of licenses and work visa?
  5. What is the requirement and compliance for renewal of trade license, work visa, etc?
  6. What are the compliance I need to meet to maintain the company status?
  7. What is the compliance becoming an employer hiring local 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 of Domestic Trade and Consumer Affairs, 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:
  • Incorporating Malaysian Company Sdn Bhd
  • Advantages Registering Malaysia Labuan Company
  • Representative and Regional Office Setting Up in Malaysia
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.

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