Business formation in Malaysia

Setting Up Foreign-ed Company in Malaysia

business formation in malaysia

Setting Up Foreign-ed Company in Malaysia

Malaysia is one of the top private investment destinations in Southeast Asia. Why is this so? Because many foreign investors have seen the opportunities and capabilities of Malaysia across the different industries. So if you are interested in setting up a foreign-owned company in Malaysia, you are on the right track.  

At Klozer, setting up a foreign-owned company in Malaysia is one of our expertise. But before you acquire our services, here is some information we believe you need to know in order to start your business in Malaysia.

Basic Requirements

Setting up a company under the 1965 Companies Act is the same for both Malaysian companies and foreign-invested companies. You will be required to set up a Private Limited Company, commonly known as ‘Sendirian Berhad’ or ‘Sdn. Bhd.’

These are the basic requirements to do so:

– Capital of RM1

– Minimum of one resident director

– Minimum of one subscriber to company shares

– A company secretary who is a member of a professional body or licensed by Companies Commision of Malaysia (SSM)

Equity Policy

Foreign investors are allowed to hold 100% equity in most industries, except for strategic sectors of national interest (water, telecommunications, energy, and the likes).

Business Licenses

Different industries come with different regulations. Generally, business licenses will be categorized into one of these three groups: General licenses, Sector Industry Specific licenses, and Activity Specific licenses.

Wholesale Retail Trade License

Foreign-owned companies are most likely to require a Wholesale Retail Trade license, which can be easily attained as long as the foreign participation has a foreign equity of 51% or more. Do note that the company must be listed in the Malaysia Distributive Trade Services that include, wholesale, retail, franchise, practitioners, direct selling, and supplier. Additionally, specifically for the Wholesale Retail Trade License, a minimum capital of RM1 million is required.

Equity Policy

Foreign investors are allowed to hold 100% equity in most industries, except for strategic sectors of national interest (water, telecommunications, energy, and the likes).

Business Licenses

Different industries come with different regulations. Generally, business licenses will be categorized into one of these three groups: General licenses, Sector Industry Specific licenses, and Activity Specific licenses.

Wholesale Retail Trade License

Foreign-owned companies are most likely to require a Wholesale Retail Trade license, which can be easily attained as long as the foreign participation has a foreign equity of 51% or more. Do note that the company must be listed in the Malaysia Distributive Trade Services that include, wholesale, retail, franchise, practitioners, direct selling, and supplier. Additionally, specifically for the Wholesale Retail Trade License, a minimum capital of RM1 million is required.

Are you interested in partnering with the experienced professionals at Klozer for setting up a foreign-ed company in Malaysia?

Then drop us a message and we will get back to you soon.

× Let's Chat!