FAQS by foreigners with intention to set up business in Malaysia.
1) Can we form company for business in Malaysia? Incorporation of Malaysia Private Limited Company with only Foreign Directors and Shareholders?
Yes. If you wish to start your business in Malaysia, we can incorporate your Malaysia Company with a few simple steps.
2) How much and how long to incorporate the company?
Fee for incorporation of foreign owned Malaysia Company:
|RM 3,800.00 (for Malaysian company with foreign company as shareholders)|
|RM 3,200.00 (for Malaysian company with foreign individual as shareholders)|
Estimated completion time of Company Incorporation will be 2-3 weeks from day of 1st Payment.
3) What are the requirements and procedures to incorporate the company?
Incorporation procedures & requirements:
|1) To complete company incorporation standard Application Form via email.|
|2) Attached scan copy of applicant passport — At least 2 persons for directorship and shareholders. (Directors and Shareholders can be the same people)|
|3) 1st Payment RM 1,000.00 to our bank account by TT or online Credit Card/Paypal/Phone CC charging.|
|1) Commencement of Name Search.|
|2) Confirmation of Company name availability — 1 working day.|
|3) In the event all Company Name provided is not available, you will be informed immediately to provide New Company Name selection until successful name search.|
|4) Booking & registration of confirmed Company name for incorporation — 2 working days.|
|1) All Company incorporation documents will be prepared & send by email to you within 3 working days.|
|2) You are required to print out all documents 2 copies each and sign all the documents at all relevant places.|
|3) Return all hard copy documents signed to us by courier.|
|4) Balance payment RM 2,200.00 to our bank account by TT or online Credit Card/Paypal/Phone CC charging.|
|1) Upon receive of your courier, we will submit to SSM for processing.|
|2) Certificate of Incorporation and Company Registration Number will be ready for collection from SSM — 5 working days.|
|3) Final completion for delivery of your company to you — 3 working days.|
4) Do we need business and residence addresses to incorporate the Malaysia Company with foreign Directors? Can you assist us to arrange for the address requirements?
Yes to both. We can assist in fulfilling the above requirement.
5) Can you let me know more about the company incorporated through you? What is the company you can incorporate for us?
The Company basic details,
|Local Malaysian Private Limited Company (Sendirian Berhad)|
|2 Foreign Directors (you can invite local director if you wish)|
|2 Foreign Shareholders (you can invite local shareholder if you wish)|
|RM2.00 Paid up Capital*|
|RM 100,000.00 Authorized Capital**|
6) What is Paid up Capital and Authorized Capital?
* Paid up Capital is the amount of money injected into the company by the shareholders from time to time, when required for its business and certain capital status required by the government in relation to the company business or licensing/permit application. Paid up Capital money once injected, belongs to the company as a separate entity and it is NOT and CANNOT be treated as shareholders/directors loans or advances.
** Authorized capital is only a figure limit on how much you can increase your Paid up Capital at your discretion for the need of your company. It is not an amount that is represented financially in your account. You can also increase from time to time your Authorized Capital to a higher limit if your business required a bigger Paid up Capital.
7) What is the difference between Paid up Capital & Shareholders/Directors advances/loan?
Advances/loans are funds that you can withdraw and repay back to foreign bank account with lesser limitation. Paid up Capital is fund belongs to the Malaysian Company, any transfer of fund to foreign country will be subjected to scrutiny.
8) What is the statutory cost to maintain the company in Malaysia?
Other than the operational expenses required by your business, the other costs will be as follows,
Statutory and continuation cost of Malaysia private limited company.
|1) Certified company secretary fees RM720/year. For the preparation & maintenance of your company statutory records.|
|2) Filing of annual return for submission of yearly financial information - RM400/year.|
|3) Auditing & Taxation preparation of your company account is required for the annual return submission mentioned above. Fee starting from RM 1,000.00/year for dormant company. The actual fee is depending on volume of financial transactions of the company. For an average size company estimated RM 3 to 4,000.00/year.|
|4) You also require to engage someone to prepare your company financial account for auditing & taxation purposes. You are also able to outsource such work to us. Our fee starts from RM 1,800.00 to prepare your company end of year financial accounts.|
9) Can we get expatriate visa or working permits in Malaysia? Can we work or conduct/run our business in Malaysia?
Yes you can. You and any of your foreign partners once registered a fully foreign owned Malaysia company you are able to apply for directors/professional working visa with some standard requirement. This visa allows you to work, conduct your business and have multiple travels in/out of Malaysia.
10) What is the difference in Expatriate Visa, Director Visa or DP10 Visa? What is a Professional Work Permit Visa?
Expatriate Visa, Director Visa or the DP10 Visa, all are the same and commonly used names “Employment Pass, Professional Work Permit or Professional Pass”).
Professional Work Permit is issued to Top Level Management (Company Directors, Managers) and highly skilled professionals. It means that an expatriate from another country is one of the company director/shareholder or Highly Skilled staff and offered a Top level position/Skilled Job in Malaysia.
11) What is the requirement and how can I apply for expatriate visa or working permit?
Government of Malaysia has made very easy procedure for the issuance of Work Permits for investors. Once your company is incorporated with a minimum of RM 500,000 fully Paid up Capital, which will be stated in Section “D” of FORM 24 of Company your registration, you may then apply for your professional visa (work permit). With the permit you will be able to run your business operation in Malaysia.
12) How can the expatriate visa or working permit application be done? What are the procedures?
Upon incorporation of you company and the minimum requirement of RM500,000 fully Paid up Capital are fulfilled, we can assist you to get a tenancy agreement for your business address. With the business address you can proceed to apply through our municipal councils for a legitimate business license.
After obtaining the business license, you may then go directly to Immigration Department to submit the “DP10 Application”. After the official EXPATRIATE COMMITTEE (EC) decision on your DP10 Application is obtained and then the DP10 approved by immigration, your work permit sticker can be pasted on your passport.
13) Can you assist in the expatriate visa or working permit application?
Yes. We can assist in all the necessary preparation/documentation for you to legally eligible to apply for business license, expatriate visa, Director/Professional Visa or working permit. You are required to arrange submission of your application personally through government municipal councils and immigration.
For your information, ONLY Local Government and Immigration Department has the RIGHT to “Accept or Reject” your business license and work permit application. No One can interfere or has any influence to change the Government's decision.
14) Can my wife or family come with me to Malaysia?
Yes your family can stay in Malaysia. Your wife can also follow you to Malaysia and are permitted to seek employment by applying through the same process.
15) What is i-Kad?
i-Kad is an employment Pass ID Card. Upon Confirmation of your Professional Visa, the Immigration issue a i-kad (card) used as your Expatriate Identity Card for traveling within Malaysia.
16) Can I apply for Permanent Residency in Malaysia?
Yes you can apply for Permanent Residency after 3 years upon working in Malaysia on a Professional Work Permit. But, please bear in mind it is the sole RIGHT of Malaysian Government to grant PR to foreigner. No One has any influence to change the Government's decision. For PR and Work Permit related inquiries, always consult DIRECTLY with Immigration Department.