Maximum entrepreneurial-minded business owners looking forward to expanding the business to foreign nations can find it challenging to resist their urge to establish their business in the bustling commercial landscape of Malaysia. Well, company registration in Malaysia for foreigner is as easy as owning a business in any other country. Know why and how!
Business In Malaysia By A Foreigner - What Do You Need To Know?
As per the company act 2016, any foreigner can incorporate a particular kind of business entity and solely on it for as long as they have a legitimate residential address within Malaysia. Maximum Malaysian businessmen shoes to incorporate a sole proprietorship or a partnership when you compare it to a private limited company. It is because of the easy process of company registration in Malaysia for foreigner and the cheap cost for maintaining the annual business. But, Such in option might face a few drawbacks:
● Partners or business owners are responsible for all kinds of debts accumulated by the business.
● The creditors come with the power to sue the partners or business owners if they have filed for bankruptcy for claiming the debts owed.
●Encouraging third-party bankers on investors for funding the business might not be so easy.
The annual compliance and cost for maintaining a sole proprietorship and partnership is less compared to a private limited company in Malaysia for a foreigner. But, the partners or owners facing bankruptcy definitely puts the business at stake. This is where professionals for company registration in Malaysia for foreigner come.
When you contact a professional agency for registering your business in Malaysia, they will be able to pull you out of the common problems faced by a person looking forward to establishing their own business in Malaysia.
What about a subsidiary or a private limited company?
A private limited company or a subsidiary are pretty similar to one another. But, setting up a new subsidiary can be challenging and regarded as when you compare it to establishing a private limited company in Malaysia. Some of the documents required are:
● Statutory declaration by the parent company's agent.
● An appointment memorandum or the authorization of the power of attorney residing in Malaysia to accept all the notices on behalf of the parent company.
● A board of resolution from the parent company for approving the company registration in Malaysia for foreigner of the subsidiary company.
● Company details of parent company authorized by the appointed company secretary.
The price to incorporate a subsidiary company depends on the authorized share capital. On the other hand, establishing a private limited company follows no such rule. The higher the share capital will be, the higher will be the fees chargeable for a subsidiary.
Closure
If you choose a corporate specialist service, the process of company registration in Malaysia for foreigner will be easy when it comes to expanding your business in a foreign land. The lack of regional knowledge, the feeling of being alarms as well as the thoughts from various websites out there can make you think twice before you venture into something new. It is completely fine as you are going to expand your new business in a foreign land. The professionals in Malaysia helping with company registration processes are always ready to serve their clients to the best of their capabilities.