Company registration in Malaysia - Overcoming regulatory hassles

Company prospective is at its pick in Malaysia. Every year thousands of foreign business enthusiast come into Malaysia to try their luck in business sector. The reason behind this gathering of potential intrapreneurs in Malaysia is due to fair corporate policies that government of Malaysia ensured in the country.

However, there are few catches in Malaysia that often causes complexities among investors in this nation. Complexities may appear at the very beginning of a startup for some entrepreneur, but keep in mind that regulatory hassles during company registration can be solved.

Every complexity has some level of solutions. Company incorporation in Malaysia is of no difference. One may face several complicacies when registering a company for the first time in Malaysia. Right step at the right time is all it needs to solve such complicacies.

This article highlighted few governmental regulatory mazes that one may have to cross when incorporating a company in Malaysia.

Common regulatory hassles

The governmental formality issue begins with the opening of a company bank account. Without a company bank account, deposition of paid up capital is impossible. According to the country’s regulatory law, expats have to show business visa or work permit in order to be eligible to open a bank account in Malaysia. This is indeed a terrible turmoil for foreign investors.

When mentioned about increased paid up capital, this is yet another puzzle entrepreneur needs to solve when entering into corporate world in Malaysia. A fixed paid up capital must be deposited according to the regulatory bindings, without which incorporation process remains incomplete.

In case of overseas investors, applicant need to show a paid-up capital of at least RM500,000 to get work permit and suitable visa for starting a company here. Again, the amount mentioned must be deposited in the bank, whereas, opening a bank account is not a cup of tea for foreign individual without work permit.

Ways to overcome problems

Get a good knowledge beforehand regarding local business laws and requirements. If available, discuss with any known company already doing business in Malaysia for many years. They might give useful tips to avoid such confusions and hassles.

Registration requirement demands at least a single local shareholder for starting a company. When local shareholder opens a corporate bank account on company’s behalf, regulatory hassle goes down, as he/ she can open an account as local client.   

Nevertheless, it is wise to get in touch with a good business consulting firm. Various such organizations are available in Malaysia. Professional business lawyers and company registration experts from these companies provide valuable support during complications mentioned above.

S & F consulting firm, a renown business consulting company, dealing with company incorporation processes, company auditing and on-demand accounting services in Malaysia and various other countries for past many years. The company has professional business lawyers and experts in this relevant field. They are ready to assist overseas investors all over the world to begin their corporate journey here in Malaysia. 

Note: for company registration, you have need a company secretary. See here what are the powers of a company secretary in Malaysia?