If you own an expanding business and have identified Malaysia as a potential location for future trade, there is much to consider. Moving into any unknown market is fraught with risk, plus you must ensure that you fully comply with Malaysian government directives, which are very complex regarding foreign businesses.
Seek Out the Help of a Leading Local Law Company
This is by far the best approach, as a KL-based law firm would be very familiar with the laws concerning setting up a business, and they can advise you as to the best type of company formation. Simply search with Google for ‘company registration in Malaysia’ and you will receive a long list of websites of law firms that handle the process.
Free Virtual Consultation
Due to the current Covid-19 global pandemic, the law company would be happy to offer you a free video call, during which you can ask any questions you might have, and should you decide to go ahead, the entire process usually takes about 7 days. If you would like some help with effective business communication, here is an informative article on the subject.
Company Formation Options
There are several ways that you can set up a business in Malaysia, which include:
- Offshore Company – The offshore company is one that is excluded from its domestic parent and can therefore register in Malaysia as an offshore entity. This type of company enjoys low tax rates, and this might be the best option for you if you wish to acquire property, or as a holding company for investments.
- Private Limited Company – Known as Sdn Bhd, this allows to set up a legal entity, one that can trade, acquire assets, enter into business agreements and go into debt. This is the most common form of foreign business registration and the shareholders have limited liability, which is limited to the amount they have invested in the business. If you have done your market research and are sure there is a demand for your products or services, talk to a local legal company who can assist you with the company formation.
- Representative Office – This is ideal for companies that wish to carry out extensive market research in Malaysia, and this non-trading entity offers from 2-5 years, in which to carry out market research and analysis. The good news is that no tax is levied on a representative office, and this allows you to investigate the many investment opportunities there are in Malaysia, and when you are ready to move into a trading entity, your legal support can make the application. Click here for more information on setting up a business in Malaysia, which will prove to be invaluable.
In some sectors, foreigners are allowed to own 100% of the company, yet there are protected sectors when the majority of shareholders must be Malaysian, as with education, agriculture, banking and finance.
Whatever your business requirements when looking to invest in Malaysia, you need to consult with a leading KL law firm, as they have the know-how to advise and facilitate the right package for you.