Start a business there as 100% foreign owned firm

Gravitas wrote:

To incorporate a business if it is 100% foreign owned you need two Directors and RM500k working capital. Only RM350k if your incorporate with a Malaysian.


Dear Gravitas,

Thanks for all useful infos. am really interested to move to Malaysia... so am planning to start a business there as 100% foreign owned firm, but what is meant by 2 directors? do i need to assign a local director?

is this a federal law which is applied to all Malaysian cities? and from your point of view which is the best city to start a small bzns. in term of Ease & flexible laws ... thanks in Advance Dear ...

Salem = new rules apply - paid up capital in the company required is now RM1 million.

You need 2 Directors i.e. you and another foreigner, to own a 100% foreign-owned company.

You dont need a local director, but if you want to set up a firm with a local director, they (can be more than one person) must have 51% control and the paid up capital required is RM350,000.

The paid up capital can be removed for operating purposes, but must be returned so the report and accounts can be completed each year.

No immigration (employment pass) is provided until the business is operating completely and is fully licenced.

There are no easy and flexible laws in Malaysia - the situation is quite the opposite. Every law is strictly applied. Location for the business depends on funds available, i.e. rents are higher in KL City area, lower in Selangor and other suburbs and smaller cities.

Salem = not sure why you post on this thread about Malaysia Citizenship, because there is no connection to owning a business here.

MC is never given, sometimes Permanent Residency might be given in a small number of situations, but  even for spouses of Malaysian Citizens, they just get Long Term Social Visit Passes and not even PR in many cases. LTSV holders also get their wings clipped initially and are not allowed to find work for a set period and often cannot find work at all.

Thank Gravitas, for the quick response & full, sufficient information u gave ... I really appreciate... :)

Hi Salem_SBY,

A new topic has been created as from your post on the Malaysia forum for more visibility.

Thank you.