Dear Members....Need your suggestions...I want to start business in KL

Hi welcome! You don't make it clear if your wife is Pakistani or Malaysian. If she is Malaysian everything is simpler!

Things are easier these days as you can own 100% of company but you do need 2 resident directors. That is interpreted these days as anyone resident including expats (if you wife is Malaysian safer to use her though plus father-in-law say). Using agent introduced directors is risky.

Internet cafes seem dead as a business concept - I can't remember seeing one in years. Toursits have smart phones and wifi everywhere and so do locals.

The main business risk I see is that you have no business experience and will be doing business in a foreign country. Both are risky but together they feed off each other. You should at least consider what work you did before and build on that. If you are married to a Malaysian easier to get a job and no 5k minimum. You could "settle in" that way for a year while loooking at setting up a business after getting to know Malaysia better.

Of those that you mention restaurants make the most - although that was a few years ago I have no idea if increased competition from chains has hurt restaurants as far more chains around that when I looked at restaurants as a business (back then foreigners were far more restricted).

Launderies are in every condo (self service is rare) and mini-marts? I suspect Malaysians are using superstores more in KL.

As for where that is a very personal decision! But more Pakistanis in KL I presume so more networking opportunities.

Do be warned that some rascism exists against Pakistanis in Malaysia although Malaysia is improving in KL at least in terms of tolerance and acceptance.

Also do be careful of agents promising so much - "easy" work permits can go wrong down the line and so do dodgy business set ups. There are quite a few expats who got burnt in Malaysia after they invested in restaurent/bars in Bangsar for example. If an agent takes "short cuts" you are exposed if things go wrong. That "licence easy lah" ends up as "sorry no licence lah you go away now I give no refunds" or even worse a few years after setting up something strange happens...... like your lovely "introduced" directors suddenly own the business! I know of one guy robbed of 10's of millions this way. You need to be able to trust your directors and accountants.

Good luck

Do not trust agents/
You have no business experience so try to star very small & feel the market.
You can employ locals for serving cooking or whatever/
You as a Pakistany you need to get permit/very difficult to get permit unless you have special skill locals do not then ok.
You come here with your partners/start as a tourism then you feel the country/then you will meet Pakistani people then you can make a decision.
You can not open a business on advice of other people like on this Expat.com/
Perfect case to make a costly mistake if you take advice from anybody to try to run a business.
Do not get an agents/do not listen agents/you do not pay money to anyone for advice or promised visa.

Come for holiday and see yourself.
Trust me it worth loosing some money to evaluate if you can run business or not if you come and visit the country yourself.

Hi Fahad72,

Thought I could give you some advice as I am also currently setting up an SDN BHD company in Malaysia.

Firstly the minimum capital requirements for a 100% foreign owned company is RM500,000. This needs to be paid in as cash. Under certain requirements you can be registered as an exempt private company which will legally allow directors to take loans from the company to release some of the capital. If your business doesn't qualify for this the capital will remain within the the company for use within the business only.

You mention a restaurant or minimart as possible business paths for yourself. I believe (although my business isn't in this area) that you will require a WRT permit for the business. For a foreign owned company this will require minimum RM1,000,000 paid in capital for this to be considired to be issued. Please note this the minimum, it could be more depending on how the relevant department views the application.

The next issue that you will need to consider is the work permit. Simply setting up a SDN BHD company doesn't qualify you for a work permit.

The foreigner who is applying for a work permit needs to have at a minimum bachelors degree. Malaysia is looking for highly skilled workers. The exception to this is the IT industry but you must be able to demonstrate relevant experience in a heavy user of IT.

The minimum for income is indeed RM5,000 for an employment pass. However this is the minimum and if you apply as CEO (or similar key post position) of your company the immigration department might request that the income is raised or the pass won't be issued.

I have heard that it  is relatively "simple" to get one work permit per RM500,000 paid in capital except in certain industries such as manufacturing. I believe manufacturing guarantees a certain number of work permits based on the capital paid in. You might want to contact MIDA for more information on that one.  Another option is an IT company if you can get MSC status, this allows unlimited work permits as long as certain ratios of local to foreign workers are kept.

I most circumstance it will be up the immigration department and they will always have the final say if the permit is issued.

It will be hard to avoid using an agent as you will need to have a local company secretary by law. You will find after a bit of research that most business offer establishment and company secretary services. I agree with the other posters do not use local directors. Directors have the ultimate power over the company so these positioned must be filled by you or someone you trust! To be a director you only need to have a residential address for the directors within Malaysia.

As with any business venture you MUST do your own due dilligence. Never get one opinion on anything. Look up government websites if you don't understand it can save some headache to get a lawyer or an accountant to give you advice.

Good luck with it!

GBK06

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Hi There
You do not need money to form a SDN BHD company.
Newly formed  companies SDN BHD available and with rm around 2000 ringgit you will form a company,
You need local directors we call sleeping partner he or she will not be active but now and then you would need local directors signature,as you will be only signatory to write issue a Che ques
In-order to keep the local director under control when you form a company secretary will ask the local director sign the resignation letter without any date so you keep that letter if a local director create any problem then with that pre signed letter you can sack him and with small fee you will take his shares and transfer to another  local director you will go the same thing.
Thats why you need to come and see yourself/you do not need agent.
You need to form a company that is very easy/around RM 2000/
Secretarial fees every month is around 50 or 60 ringgit.
If you need any help on this I will recommend my secretary to handle forming company/paper work ETC.
When I come here 18 years ago someone help me free and I would help you to do the same thing free.
Its a simple thing but if you do not know then you will be vulnerable.

Hi Taslik,

I think things have changed since you have established a company here. Even if you have local nominee directors and shareholders (i.e it appears on the surface to be owned 100% locally) you will still need RM250,000 paid in capital for the immigration department to consider an employment pass. Proof is required in the form of a bank statement when the employment pass application is submitted.

There is no way you could have a newly formed company for RM2,000 which could possibly apply for an employment pass. The fees payable to the Companies Commision Malaysia for a company with RM100,001 to RM500,001 is RM3,000 alone. Plus any fees that an agent will charge you.

For the original poster it is most important that you do your own research. I'm sure some people will tell you some creative ways around the regulations but its better to know the rules from the start and follow them to ensure the best possible outcome.

GBK06

taslik wrote:

Hi There
You do not need money to form a SDN BHD company.
Newly formed  companies SDN BHD available and with rm around 2000 ringgit you will form a company,
You need local directors we call sleeping partner he or she will not be active but now and then you would need local directors signature,as you will be only signatory to write issue a Che ques
In-order to keep the local director under control when you form a company secretary will ask the local director sign the resignation letter without any date so you keep that letter if a local director create any problem then with that pre signed letter you can sack him and with small fee you will take his shares and transfer to another  local director you will go the same thing.
Thats why you need to come and see yourself/you do not need agent.
You need to form a company that is very easy/around RM 2000/
Secretarial fees every month is around 50 or 60 ringgit.
If you need any help on this I will recommend my secretary to handle forming company/paper work ETC.
When I come here 18 years ago someone help me free and I would help you to do the same thing free.
Its a simple thing but if you do not know then you will be vulnerable.

Thanks for your sincere suggestion, could you send me your contact details in private - appreciate your help brother.

Also do suggest some GOOD business opportunities as per current envirnoment, I appreciate all your support in this respect.

Thanks and Take care/ Fahad

gbk06 wrote:

Hi Taslik,

I think things have changed since you have established a company here. Even if you have local nominee directors and shareholders (i.e it appears on the surface to be owned 100% locally) you will still need RM250,000 paid in capital for the immigration department to consider an employment pass. Proof is required in the form of a bank statement when the employment pass application is submitted.

There is no way you could have a newly formed company for RM2,000 which could possibly apply for an employment pass. The fees payable to the Companies Commision Malaysia for a company with RM100,001 to RM500,001 is RM3,000 alone. Plus any fees that an agent will charge you.

For the original poster it is most important that you do your own research. I'm sure some people will tell you some creative ways around the regulations but its better to know the rules from the start and follow them to ensure the best possible outcome.

GBK06

Hey buddy,

So it means that we MUST use agent to show-up this capital? Correct

We alone can form company BUT will not get immigration/employmenut pass which kills the purpose..

Can you lead me to a LEGIT agent/consultant in Malaysia? we are arriving in September!

At the moment, we are dealing with the following agent/consultant who claims that he will form company with RM 0.5M with paidup capaital and get our director business visa with 2 year validity (Renewable) WITHOUT going to MALAYSIA......his wife is malaysian. (Namely AXIS CONSULTANTS)

Appreciate your comments, thanks.

Thanks again for all your assistance/Fahad

Nemodot wrote:

Hi welcome! You don't make it clear if your wife is Pakistani or Malaysian. If she is Malaysian everything is simpler!

Things are easier these days as you can own 100% of company but you do need 2 resident directors. That is interpreted these days as anyone resident including expats (if you wife is Malaysian safer to use her though plus father-in-law say). Using agent introduced directors is risky.

Internet cafes seem dead as a business concept - I can't remember seeing one in years. Toursits have smart phones and wifi everywhere and so do locals.

The main business risk I see is that you have no business experience and will be doing business in a foreign country. Both are risky but together they feed off each other. You should at least consider what work you did before and build on that. If you are married to a Malaysian easier to get a job and no 5k minimum. You could "settle in" that way for a year while loooking at setting up a business after getting to know Malaysia better.

Of those that you mention restaurants make the most - although that was a few years ago I have no idea if increased competition from chains has hurt restaurants as far more chains around that when I looked at restaurants as a business (back then foreigners were far more restricted).

Launderies are in every condo (self service is rare) and mini-marts? I suspect Malaysians are using superstores more in KL.

As for where that is a very personal decision! But more Pakistanis in KL I presume so more networking opportunities.

Do be warned that some rascism exists against Pakistanis in Malaysia although Malaysia is improving in KL at least in terms of tolerance and acceptance.

Also do be careful of agents promising so much - "easy" work permits can go wrong down the line and so do dodgy business set ups. There are quite a few expats who got burnt in Malaysia after they invested in restaurent/bars in Bangsar for example. If an agent takes "short cuts" you are exposed if things go wrong. That "licence easy lah" ends up as "sorry no licence lah you go away now I give no refunds" or even worse a few years after setting up something strange happens...... like your lovely "introduced" directors suddenly own the business! I know of one guy robbed of 10's of millions this way. You need to be able to trust your directors and accountants.

Good luck

Nemodot,

Your views are VERY good throughout the forum, much appreciate your help.

Regarding business, now a foreigner can own a SDN BHD company with a local (whose resignation is signed alongwith his appointment letter, so there is NO risk at all)

Above that, I have seen DIRECTOR's 2 years renewable visa as well, so now we can have a LEGAL status in KL, I alse heared that once LOCAL is involved in private SDN BHD company we get WRT licence exemption, is it ture?

Considering above, I would like your comments about the business opportunities yet to explore in KL.

I am Computer System Engineer by profession and have Pakistani wife (NOT malaysian) with 02 kids (5 months and 4 years)

Coming with 02 partners, would like to invest around
1,00,000 RM.

Initially want to setup 02 different business so that we 03 partners can run our family once we came to know monthly earnings.

I am here for the suggestions on business, can you guide me or show me any website/any consultant etc.

Once again, thanks for all your assistance.

Truly appreicated / Fahad

Hi I set up two companies nearly ten years ago and rules change. But I think you will find diverse opinions as there are two ways of setting up a business and get a wp

- legal way
- criminal way (as in laws not followed properly)

Some may not know they have done the second option! If you are serious you need to spend on a good lawyer. And yes you need a comp sec who is local.

1 million rm isn't that much these days. I was going to suggest a mcdonalds franchise as in paper yesterday how they want 500 more outlets. They interview you and if pass you get 1 years training in running a restaurant. Then with capital (no idea how much) you set a mcdonalds up. Can be very profitable! Can't get a seat in mcdonalds as always busy. Might be worth looking into and they are very likely to give you good training and support.

Petronas does franchising as well but think that is 2 million min and malaysians only (bumi preferred) but good profits so I heard (years ago though). You could look into other franchises.

You need to come here and see yourself/do yourself before you regret that you ask opinion.
You can form a company without any help from any agents,
You can run company with local workers/you just hang around your business see what your employees are doing for that you do not need a permit.
Depending to your passport every month or 2 you go out of country and come back even same day to renew your social visit pass done automatically.
Even they say many things change you come and see ask yourself to Immigration.Where is harm on this?
Without coming here agents promising work permit/forming company e.t.c you prepare yourself to say goodby to your hard cash.
After loosing your money I do not want to say to you I told you so.
I would not insist this much to inform you but I know that these so called agents smiling for potential easy money coming from your pocket.
Ignorance is a bliss.
God help you.

You need to come here first to see & ask & do.

taslik wrote:

You need to come here and see yourself/do yourself before you regret that you ask opinion.
You can form a company without any help from any agents,
You can run company with local workers/you just hang around your business see what your employees are doing for that you do not need a permit.
Depending to your passport every month or 2 you go out of country and come back even same day to renew your social visit pass done automatically.
Even they say many things change you come and see ask yourself to Immigration.Where is harm on this?
Without coming here agents promising work permit/forming company e.t.c you prepare yourself to say goodby to your hard cash.
After loosing your money I do not want to say to you I told you so.
I would not insist this much to inform you but I know that these so called agents smiling for potential easy money coming from your pocket.
Ignorance is a bliss.
God help you.

You need to come here first to see & ask & do.

Correct!

That is the reason I am going to visit KL from 3/Sep to 14/Sep...I appreciate your suggestions.

Also do give me some websites or agent locations/contact details to have words with them as we need guidance from all of you great people present here.

Also suggest which city has more business opportunities, penang or KL or gentine etc

Looking forward to hear from you / Take care!

Nemodot wrote:

Hi I set up two companies nearly ten years ago and rules change. But I think you will find diverse opinions as there are two ways of setting up a business and get a wp

- legal way
- criminal way (as in laws not followed properly)

Some may not know they have done the second option! If you are serious you need to spend on a good lawyer. And yes you need a comp sec who is local.

1 million rm isn't that much these days. I was going to suggest a mcdonalds franchise as in paper yesterday how they want 500 more outlets. They interview you and if pass you get 1 years training in running a restaurant. Then with capital (no idea how much) you set a mcdonalds up. Can be very profitable! Can't get a seat in mcdonalds as always busy. Might be worth looking into and they are very likely to give you good training and support.

Petronas does franchising as well but think that is 2 million min and malaysians only (bumi preferred) but good profits so I heard (years ago though). You could look into other franchises.

Thank you very  much for your honest advice.

Also do let me know MACDONALDS website/contact info so that I can further communicate in this respect, I am very much interested to have their franchise.

Take good care of yourself!

Mrs Dawson - is this REALLY legal.............

I certainly would not approach a completely unknown person with a "Live" email and borrow money.  When do the heavy boys come round and kickk your head in to get protection money??

McDonalds is enjoying very good business in Malaysia. Do a search on google for minions in McD malaysia and you will get what I mean.

Hords of zombie crowds lined up just to buy the minion toy. Its more than a craze, more of a cult... lol

Next year the Hello Kitty toy will hit Malaysia and boy, I will be the first to line up for my 6 year old!

Most of the McD are trying to open for 24 hour business. This means it needs to be a standalone landed place rather than it opening at shopping malls that limits the operating hours based on the mall time.

Imagine being asleep but money keeps coming in 24/7/365year...

Franchising is probably a good choice (this topic is over one year old by the way). There are many choices in Malaysia - local and international brands.

Bad move to say that you like to run a business and you are asking opinion about this matter.
Many con-man will offer you advise and probably will take your money without realising it.
And do you think people on ex-pat retired consultant's ?

Do research spend a lot of time look and see what's going on in the city and make your move.

Do you think Mc.Donald and other big business gets the idea from ex-pat consultant's?

Think about it.