How to Start a Company in Malaysia as a Foreigner

Setting up your own business in Malaysia? It's a great opportunity but not without its challenges. Malaysia ranks as one of the best places to do business. So, it's clear that Malaysia's a top spot for overseas entrepreneurs. If you're from abroad and looking to set up a business here, there are a few legal and admin hoops to jump through.

Can a Foreigner Start a Business in Malaysia?

Yes, foreigners can start businesses in Malaysia, but there’s a twist.

Malaysia, being part of big international trade agreements like the ASEAN Free Trade Area, is all for foreign investment and trade. The government here is quite keen on getting foreign investors on board and has even rolled out a few policies and schemes to pull in that overseas expertise.

That said, it's not a free-for-all. If you're from outside and want to start a business in Malaysia, there are a few rules you need to follow.

But this is nothing to worry about. Have a look at the accommodation sector in Malaysia, thriving with international names like PARKROYAL Penang Resort. So, the good news is you can start a business here, whether it’s a hotel near Georgetown Penang catering to art enthusiasts or a café in Kuala Lumpur serving traditional British scones – but you'll need to be savvy about the rules and restrictions in place.

Choose the Right Business Structure

First things first, you need to pick up the right structure for your business. For investors from abroad, the options include:

• Limited Liability Partnership
• Partnership
• Sole Trader
• Private Limited Company
• Representative Office
• Branch Office

Choose a Suitable Name

Once you’ve decided on the right business structure, it's time to choose a name. Once you know what you want to name your company, you'll want to do a quick check with the Companies Commission of Malaysia (SSM) to make sure it's not already taken.

When you've given it the once-over, and everything is clear, you can officially register your chosen name with the SSM. If the name is approved, you can proceed to the next step.

Registration

Now it’s time for you to get the company on the books.

First, you need to register the company name with the SSM. Once the name is approved, you have a 30-day period to get the company registered. However, if you want a bit more time, you can request an extension for just RM 5,000.

Documents required:

• A copy of the ID for each of the directors
• Declaration of compliance
• Declaration by a director
• Constitution

Make sure everything is in order and above board.

Post Registration

It’s not all over once the company is registered; there are a few more aspects to take care of in order to get your company up and running.

Here’s a breakdown:

• Open a business bank account.
• Figure out which business licenses you're going to need.
• Get yourself registered for the provident fund.
• Decide on your auditors.
• And lastly, get your head around your tax responsibilities.

A Final Word

Starting a company in Malaysia as a foreigner is not without its complications. But the country is one of the top business destinations in the world, and you’d be mad not to tap into the investment potential this country has. So, keep your head high and press on!