Important Key Points About Company Registration In Malaysia:

• Bank account
• Local Director
• RM 500,000
• Share capital
• Restaurant business
• Export / Import license
• MM2H
• Address
• Fees

Bank account

If you are a business owner or an investor who is planning to setup his/her own business entity in Malaysia, I would simply suggest you to study all related aspects and procedures needed to open a bank account in Malaysia as a foreigner. This is mainly because of the guidelines and regulations amended by Malaysian Government over Bank Account Opening by foreigners in Malaysia. The Foreign Investors are highly recommended to contact representatives of different banks incorporated within the country to make sure where or in which banks they are allowed to make transaction or open an account with. Usually, the local banks in Malaysia does not allow or discourage the foreigners to open an account with them due to several regulatory issues. Not to worry for my foreign investors friends as the scenario there is much acceptable for us. The foreign investors can easily open their personal and corporate account with the foreign banks incorporated and established in different cities all over Malaysia.
This issue often turns out to be a huge problem for the foreign investors – The main target becomes the small and medium business entities. Well foreign companies and foreign investors with big investment to make has nothing to worry about. Such companies are considered as exception and can easily open their desired company bank account in both the Local and Foreign banks established in Malaysia.

Local Director

Foreign investors usually chose Limited Liability Company, LLC as their desire business entity in Malaysia. As per company law and regulation, LLC in Malaysia is said to have at least two company directors to be incorporated. And these company directors are asked to be permanent resident off Malaysia. This is not a valid or correct information at all. The company directors are not asked to be physically present for accomplishing all steps for company registration Malaysia. The foreign company has the right to appoint local director(s) to resolve small issues and other mandatory works for company registration. All Limited Liability Company are asked to appoint a Company Secretary (it is a must) who can sent all sort of important documents to the Foreign Company Directors through courier or other electronic manner that needs signature. The company director can sign the authentic paper works and send it back to the respective company secretary through similar manner. The company secretary and other local appointed directors can easily finish up the remaining work related to company registration. The Local company directors can be hired or appointed WITHOUT holding any company shares.

RM 500,000

Often, we can see this in several professional sites related to company registration in Malaysia that it requires to remit RM 500,000 to incorporate a Private Limited Company or Limited Liability Company in Malaysia. But honestly, the information provided is not true. As business owners and sole investors can incorporate their PVT or LLC business entity in Malaysia by remitting less then the amount specified. The PVT or LLC business entities that requires formulate certain aspects i.e. to overcome immigration issue, acquiring work permit, obtaining business visa has to remit RM 500,000 for incorporation purpose. However, one won’t find such information in Company Act 1965 about remitting RM 500,000. Hence it can be said that such law or step is self-issues or impowered by the Authority People.

Share Capital

Business owners and foreign investors often come up with one question when it comes to incorporate a new business entity in Malaysia. The question is simple and straightforward -- What minimum capital is required to be submitted to start a business/small business in Malaysia?
Well the answer is simpler -- Any Amount can be submitted as share capital for registering a Private Limited Company or Limited Liability Company (or other form) in Malaysia. Actually, there is no fixed capital mentioned to be submitted at any law book, regulatory guidelines or company registration program. Yet for incorporating or establishing a big industry with big business plans RM 500,000 is asked to be paid as Capital Shares for future betterment.

Restaurant business

The Restaurant Business is always considered as a prime, lucrative and profit-making business policy for maximum investors with dreams to setup their own business in Malaysia. To be very honest it does not require much to plan and to set up a Restaurant Business in Malaysia by the investors. Malaysians love to eat and street food along with restaurant cuisines are always in demand. Hence, we can state that food business or restaurant business is simply a everyday cash business which never stops to go down only if your restaurant is established in the right location and standard food quality is maintained. The restaurant business can be incorporated in Malaysia by the means of a small capital share invested say, RM 30000 to RM 40000. One can also enjoy the availability of skilled multi-cultural staffs to work in your restaurant. Food Business and Restaurant Business Licensing are the most easiest to achieve if compared to others.

Export/ import license

Export/Import Business is considered as one of the most growing and talked business in Malaysia currently. As like all other businesses in Malaysia the Export Import business needs authentic permit from the SSM (sole statutory body that maintains company registration and regulatory facts) along with an authorized Export / Import license to start off with business operation. The investors or the business heads are always recommended to check out whether their business nature, product or service is stated legal or illegal by the Malaysian Government. Cause if it is not permitted or stated illegal one would not be allowed to get the Export Import License in Malaysia from the desired Ministry.

MM2H

The MM2H is a popular program mainly derived for foreigners staying or doing business in Malaysia. The MM2H stands for “Malaysia My Second Home” is simply a program that can be facilitated by all citizens of all age who wants or needs to live in Malaysia under long term visa. The Malaysian Government does not only allow the Visa Holders to live in Malaysia rather they are facilitated with several other benifitis and opportunities such as, purchasing property, buying house or a transportation eg: Car, Children Education. One can even call up their family members in Malaysia i.e. Husband, spouse along with work permit facility upon situation demand.

Address

As mentioned above often we see in different professional sites that an appropriate business address must be conducted by the business entity to accomplish the registration process related to Private Limited Company or Limited Liability Company in Malaysia. However, this information is also not 100% true as it is not mandatory at all for the SME. Yet business related to communication and manufacturing requires a business address but is said to be not mandatory related with company incorporation aspects and processing. It should be clear to the business owners and investors that Registered Address and Business Address are two separate issues to count.

Fees

Fess for company registration comes with demand and your personal requirement. Yes, if you demand to get better service you would simply need to pay a bit more than you usually expect.

Miscellaneous

Office Rental: Yes, to run your business in ease and hassle free it is require to have an authentic office address or a complete designed office before or after your business entity is incorporated and ready to operate in Malaysia. Business owners and sole investors can rent a Virtual Office at the beginning stage of their business operations and can later shift to their own permanent office. This surly help them to save money and time.

Sign Board and Premise License: This Sign Board and Premise License is an important aspect to deal with and required by the business entities for being operation in Malaysia. All business companies established or to be incorporated in future need to have permission for this license.
Supporting papers required to obtain this Sign Board and Premise License:
1) Office rental agreement
2) Pictures of your fully furnished office
3) Office decoration chart (PLANNING)
4) Pictures of both Indoor and outdoor places where the sign board will be placed.

ESD registration: ESD registration is accomplished by all business companies incorporated in Malaysia under the Expatriate Service Department of government in Putrajaya. This government agency is the sole body responsible for supporting and processing the Registration system.
Supporting papers required for ESD registration:
1) Company staffs
2) Financial statement
3) Detailed quota of hiring staffs
4) Copy of rental agreement
5) Other necessary documents as asked.
Why and when do you need this ESD?
Well the answer is quite simple to understand, If your company and your company work nature requires to hire foreign employees then you would simply require a valid permit to do so. The ESD registration is what that permit is all about and honestly to get that permit from the desired authorized body is not an easy task. Approval time required often cross over 3–4 months. Unless there is no ESD approval business companies or business owners can NOT bring or import foreign staffs at any cost, it is considered illegal if done so.