Business and Company Entities Permitted in Malaysia
To start a business in Malaysia as a foreigner, one should understand the entities foreigners are allowed to operate. The Malaysian government rarely allows investors from other countries to set up corporations in the textile, food industries, medical and pharmaceuticals, minerals, and wood industries. However, the government encourages foreigners to invest in the services and manufacturing industries. In its 2016-2020 plan, it cited the service sector as the primary economic driver in the country. To register a business entity in Malaysia depends on the things the investor considers significant for the business. They include; cash for licenses, office space, initial bank deposits, compliance and maintenance procedures, and tax regulations.
Below are the business entities foreign investors should look into for investment in Malaysia.
- Private Limited Company
Malaysian government encourages knowledge transfer, export, growth, and job creation in the manufacturing and service sectors owned by foreign investors.
A foreign investor can register a Sendirian Barhan (sdn bhd) with 100% foreign ownership equivalent to a Malaysian Private Limited Company (LLC). For a corporation to be 100% foreign, doing consultancy and advisory business, the investor should have a minimum of RM500 000. For a restaurant, import, export, and trading business, they should have at least RM1 million.
To get a business license with 100% foreign-owned corporation structure, one should prove how the business will provide employment and improve the country’s economy. If it’s a joint venture with a Malaysian national as a partner with a minimum control of 50%, one needs to have a minimum capital of RM 350 000 and an authorized capital of RM 500 000.
Foreign investors can request for exceptions in employing Malaysian nationals for the positions of directors and shareholders though not guaranteed.
- A Labuan Company
Labuan companies in Malaysia rent …