Starting Business in Malaysia as a Foreigner  

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Malaysia, is a conducive place and is backed by structured governance and regulations which makes it ideal for a foreigner to conduct their business within the laws of the country. The infrastructural network, availability of land, Labour supply both skilled and unskilled, marketing framework and a matured financial banking structure presents an ideal opportunity for the growth of your business.

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Starting a business in Malaysia

There are several factors that you need to consider before you embark on starting your business. The factors to put into consideration will be highly depending on the type of business you want to venture in. Here you are some considerations that will guide you towards successfully setting up your business in Malaysia.

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Type of business to engage in

Are there readily available business opportunities which you are keen in? This will be the key determinant to the success of your business as you don’t have to invest too much for development of the business. You also need to know whether the business is viable and ascertain the competitiveness of the business in the market. It is strongly advice that you do research and find out which businesses are permitted to foreigners.

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Most suitable entity for foreigners

You need to decide which entity would be suitable for your business entity. Do you want to be wholly owned by foreigners or would prefer local participation and if so what would be the level of shareholding. It is important that you have an Agent whom you know of to act for you on matters relating to the Companies Act 2016 Malaysia. The nature of your business will also determine whether you will obtain rights to fully own your foreign entity or not.

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Licensing

Prior to starting your business, you must seek permission from the authorities and obtain the necessary licensing depending on the type of business. That said, you need to understand the type of trade license that you need to acquire. The Malaysian business license you receive will be determined by the nature of the business you want to engage in.

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Registration costs

The work permits and trade licenses definitely incur cost which has to be paid for before commencing business. However, the amount to be paid will vary depending on the complexity of the business you want to start. Most importantly, do not overlook the costs of setting up the business because this is where most of your investment capital will be channeled.

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Visa option

Now that you have successfully set up your company, you need to know how you and your family can travel to Malaysia without hassle. Inquire about the various visa options that can be applied with Immigration Authority in Malaysia and a decision on the most suitable visa for you and your family.

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Problems faced by foreign investors

Understand the culture of the country, the various racial compositions, Government Policies, Labour Laws which are faced by foreign investors. Ensure you find out the challenges that you are likely to face as a foreign entrepreneur so that you can find solutions before you start the business.

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Conclusion

Apart from the formalities that have to be adhered to, Malaysia does not have stringent measures that may limit the way foreigners do business and let Ina2ndformation assist you in the company set up and other regulatory requirements so that you have minimal issues and you can focus on starting off your business.