REGISTER ONLINE BUSINESS
As a Malaysian, registering a company online is simple since there are no limits on opening a bank account, paying up money, recruiting employees, or running a business. Though registering a Sdn Bhd business in Malaysia as a foreigner is simpler, running one is extremely difficult
By AZIZAM AZIZAN
Foreign entrepreneurs are unable to stay indefinitely on a visitor visa or hire workers from other countries until a work permit is obtained. Obtaining a work permit is more difficult because the list of paperwork required after registering a business is lengthy and expensive. International shareholders used to operate their businesses from abroad, never knowing if their work permits would be accepted or denied for a long period of time. Holding a director’s tourist visa and entering Malaysia on a regular basis is fraught with suspicion and intimidation by Malaysian immigration. The service investment would be worthless if the work permit or residency visa is not accepted. Today, an international shareholder is faced with much more difficulty in determining how to continue the company by recruiting local employees. And hiring local employees never yields the same results as hiring employees from other countries. This is a true story, not a fabrication, as many foreign-owned businesses are eventually shut down as they face fact.
Online Business Registration Process
- Hire a business secretary who is qualified to handle online registrations.
- Propose 2/3 names, as common names are often matched in Malaysia.
- As a title, reserve a name with the suffix Sdn Bhd (limited liability)
- Fill out and sign a document provided by the secretary as a statement of pre-company registration.
- The Secretary will deliver the necessary documentation to SSM.
- Registration is completed by 3-5 days
- Buy business registration forms from website of MYDATA SSM
Business Bank Account
- A reputable consulting company arranges for a banker to sign account opening documents in the secretary’s office.
- It is advised that foreign entrepreneurs open a business account with HSBC, SCB, or OCBC.
- Initial deposits range from RM 30,000 to 50,000, with monthly maintenance fees.
- Foreign banks make online transfers and international transfers (TT) even more convenient.
- Submit all SSM copies obtained after a company’s registration.
Other Business License
Aside from company formation, other licences are needed as part of the business registration process.
- In Malaysia, the DBKL and MBPJ city councils require a signboard and a premise licence.
- Income tax number
- In terms of export-import companies, an export and import licence is required
- Halal license
- WRT license (wholesale and retail trade)
Company registration investment money
Service: Investment capital for service-related companies is recommended to be between RM 2000 and RM 5000. As a result of Malaysian legislation, most businesses do not need a WRT licence.
Export and import: If the essence of the company is related to retail, a minimum investment capital of RM 1 million is needed. It is also complicated by local authorities, DBKL, and MBPJ these days if 100% of a company’s shares are held by international investors.
Manufacture: If you want to register a manufacturing company online, we suggest spending at least RM 1 million.
Currently, the amount of expenditure is determined by the essence of the company and the application for a work permit. It is advised to invest RM 2000-5000 if a work permit or residency visa is not required.
What is the procedure for obtaining a company registration number in Malaysia?
You will find out what the company is licenced and how many registrations it has. Enable an account as a personal, manager, or secretary by searching Google for MyData SSM. Once you’ve verified your email, you can log in. SSM of Malaysia can be used to look up the business name and registration number. Now, if you want to find out who the director, secretary, and address are, you must purchase the forms. Each form costs between RM 15 and RM 25, plus additional fees if approved copies are needed. SSM cannot have any forms for free at the time of online company registration. You will get the super type, as well as the director’s personal information, for free at first. Due to a lack of information, some directors request that the secretary have all copies for free.
What other matters do you have in mind when it comes to company registration?
Online business registration is generally easy, but you would need your local address, email address, and phone number. All Sdn Bhd businesses are required by statute to hire a licenced company secretary. If you don’t have an SSM licence, you’re not eligible to be a clerk. As a result, a company secretary and address must be obtained prior to the commencement of a new business registration.
The cost of registering a business online
The government fee for registering a limited company in Malaysia is RM 1200, although this does not include any other facilities. Additionally, the directors must bear separate bills for secretary supplies, corporate address, certify ssm copies, board resolution, bank account open, and SSM copies. Renting a ready-to-use office desk for RM 400 is a cost-effective option for company owners. Renting a full office is expensive, and you’ll need to spend money on decorations. Initially, renting one or two ready desks on a low budget is a wise decision. The below are the annual costs:
- Annual return in the range of RM 1500-1800, which includes the return, secretary service, and virtual address rental.
- RM 800-1200 tax fee
- Financial reporting fees range from RM 1000 to RM 5000. (depend on business transactions)
- The audit fee ranges from RM 3000 to RM 4000.
- The licence renewal fee ranges from RM 600 to 1000.
Forms to take after registering a company
If you do business in Malaysia or not, you must file a yearly return before your company’s birthday expires. If you fail to submit your return, you must consider a penalty letter from SSM in the sum of RM 5000 or more. The director may choose a tax and accounting year of his or her choosing, however it is advised that he or she avoid rush periods. Following your ESD enrolment, you can apply for a work permit as a manager, manager, or executive. When an online company is registered and operations begin, it is advised that a work permit be applied for within the next 4-6 months. Applying for a work permit before starting a company can result in a bad outcome. However, you can apply your application for consideration with valid documents for immigration approval. In general, immigration takes anywhere from three to twelve months.
Top 5 challenges in Malaysia after online business registration as foreigner
- Business operation by local staffs
- Work permit
- Taxation
- Local government (DBKL, MBPJ)
- Law
Why Malaysia is one of the best in Asian country considering business hub?
- Education
- Roads and highway
- Power supply
- Administration
- Cool politics
- Job opportunity
- Head office of multinational companies
- Palm Oil
- Neighbour of Singapore
- Living cost is reasonable
After all, international entrepreneurs are encouraged to welcome Malaysia as their Asian business centre. After registering a Sdn Bhd business and starting operations, you must apply for a work permit over the next six months. Hire local employees and rent a ready office on a shoestring budget, and continue doing business until the job permit is accepted. Of course, running a business from afar and still keeping a visitor visa as a director is difficult. It is better to do business without any trouble after registration whether any local is allotted majority shares of the business.