Malaysia is ranked as one of the best in Asia for the ease of starting a business and living environment. Malaysia is ranked in 18th in “Doing Business 2016” which is issued by the World Bank every year. This is the 2nd best after Singapore in Southeast Asia, and retains advantage over Japan that is ranked in 34th for the ease of starting a business.
*Rankings for the ease of starting a business by comparing regulations and systems of each country
Here are the questions regarding laws and regulations which customers who intend to set up a company in Malaysia frequently ask.
Laws and Regulations
- 1. Is it possible to set up a wholly foreign owned company?
- A wholly foreign owned company can be set up except for some industrial categories such as convenience stores, logistics, and education.
- 2. Can we make a remittance of business fund freely?
- Remittance can be made freely. Profit earned in Malaysia can be also remitted to the home country.
- 3. Are company directors who are ordinarily resident in Malaysia necessary for incorporation?
- You normally use two names of directors who are ordinarily resident in Malaysia until your employees can obtain Employment Pass. Directors who are ordinarily resident in Malaysia are always required in some industries. Directors who are ordinarily resident in Malaysia can be local people or foreigners who possess Employment Pass.
- 4. What is the minimum corporate capital required?
- Incorporation is possible with minimum corporate capital of RM2. Please kindly be noted that minimum corporate capital is determined according to industries when applying for Employment Pass.
As stated above, there are only a few barriers to start a business in Malaysia, so you can start your business with peach of mind.
Expansion of manufacturing industry was outstanding before, but a lot of Japanese companies focus on local consumption needs and start their own business in Malaysia where economy is rapidly growing with the increase of the middle and the wealthy class. It is also one of the attractions in Malaysia that some industries have less competitors compared to other countries in Southeast Asia. Why don’t you take this opportunity to invest and start your business in Malaysia?