Generally speaking, it is possible for a foreign company or foreign investor to open a company bank account in Malaysia, which should not be technically difficult, but different banks may have different rules and requirements. If you are planning to invest or start a business in Malaysia, we recommend that you work with a reputable company such as Rising Global Consultants Sdn. Bhd Malaysia and let them assist you in opening a company bank account.

Another common problem is that foreign investors find it difficult (or impossible) to apply for a work permit under the name of their new company. In fact, the Malaysian Investment Development Authority (MIDA) has developed several different visa options for entrepreneurs on a case-by-case basis. If you are only in Malaysia to conduct pre-operation research and explore business options, you can apply for a short-term visit pass (socialization). If you are certain that you will be residing in Malaysia for a period of two years, you can apply for a Visitor’s Pass (Temporary Employment).

In Malaysia, expatriates can take full control of a 100% foreign-owned private limited company (Sdn. Bhd.), but there are some limitations when it comes to company formation.

Below is a snapshot of the minimum establishment requirements for a 100% foreign owned private limited company (Sdn. Bhd.):

Paid-up capital: RM1 million
License Requirements: Retailers, Traders (Import & Export), Distributors, Restaurants, Franchisees, Service & Consultants Service & Consultants are required to apply for a Wholesale & Retail Trade (WRT) license.
If you are setting up a consultancy company, then the paid up capital is only RM1 and you are not required to apply for a WRT license.

However, we know that the road to starting a business is a tough one. If the amount of paid-up capital is not yet up to scratch when you start your business in Malaysia, don’t worry, we can help you with your problems and license requirements. In fact, we have helped many of our clients to start their business in Malaysia with a paid-up capital of just RM1. Some foreign investors may face difficulties in being able to increase their paid up capital, with our assistance, you can easily increase your paid up capital to RM1 million or more.

In addition, all companies operating in Malaysia are required to file tax returns, regardless of whether they are resident entities or not. A foreign owned private limited company (Sdn. Bhd.) may engage a licensed tax agent to assist in the filing of the return depending on the year of assessment.

A company is tax resident in Malaysia if at any time during the year of assessment, the management and control of the company is exercised in Malaysia. Management and control of a company is deemed to be exercised when the directors meet to discuss the business (or affairs) of the company, irrespective of where the company is incorporated. The management and control of the business of the company depends on how the company is managed. In short, obtaining a Certificate of Residence is not as difficult as many people think. What’s more, our team of professionals can help you apply for a Malaysian Resident Certificate in a hassle-free manner.