Are you a foreigner looking to start a business in Malaysia? Then you’ll need to know the ins and outs of applying for Malaysia Business Licenses, especially when unfamiliar with the Malaysian legal and financial landscape. That’s why we’ve created this guide to help you get your company up and running quickly.
Set Up Your Company Structure:
Before you can start up your business, you’ll need to make sure that the company’s structure is in place. There are multiple company structures to choose from in Malaysia. These includes, but not limited to:
- Private Limited Company (Sdn. Bhd.) – this is the most popular company structure for foreign business owners
- Private Limited Company (Bhd.) – this is for big companies, usually Multinational Corporations
- Sole Proprietorships
- Representative Office
You can find out more about them here: https://www.paulhypepage.my/guide-faq/what-are-the-5-types-of-business-entity-in-malaysia/
Register Your Company with the Companies Commission of Malaysia (SSM):
Once you’ve determined the type of company you plan to incorporate, the next step is to register your company with the Companies Commission of Malaysia (SSM). The process is relatively straightforward, however, some forms and documents are in their native language of Bahasa Malaysia, which could potentially be a challenge for those who are not able to understand the language. . Once your company is registered, you can apply for the necessary permits and licenses.
Apply for Malaysia Business Licenses:
No matter if you are a foreigner or a local, you may be required to obtain a business license in Malaysia in order to operate your business legally. Depending on the type of business you wish to operate, the process of obtaining a business license may vary.
For example, you may need to apply to the Malaysian Investment Development Authority (MIDA) or the Malaysian Industrial Development Authority (MIDA). Your application will be reviewed, and you may be required to attend an interview.
Once your application is approved, you will be issued a business license. This license will need to be renewed yearly.
It is important to note that the requirements for obtaining a business license in Malaysia may change occasionally. Therefore, seeking professional help to ensure you comply with the latest regulations is advisable.
The Types of Business Licenses Available in Malaysia
As a foreigner doing business in Malaysia, you must apply for the Malaysian government’s relevant business licenses. There are many types of business licenses available in Malaysia.
Here are a few examples:
1. The Malaysian Investment Development Authority (MIDA) License
This license is required for companies engaged in manufacturing or services activities deemed to be of high value-add. To be eligible for this license, your company must be registered with MIDA and have a minimum paid-up capital of RM2.5 million.
2. The Malaysia External Trade Development Corporation (MATRADE) License
This license is required for companies that are engaged in the import and export of goods. To be eligible for this license, your company must be registered with MATRADE and have a minimum paid-up capital of RM500,000.
3. The Malaysian Communications and Multimedia Commission (MCMC) License
This license is required for companies that provide telecommunications and multimedia services. To be eligible for this license, your company must be registered with the MCMC and have a minimum paid-up capital of RM500,000.
Complying with the Regulations
Once you have obtained the Malaysia Business Licenses, you must ensure that your business complies with all the regulations and laws. This includes registering for taxes, filing annual returns, and ensuring the safety and health of your employees. If the business licenses have an expiry, do remember to get them renewed to avoid penalties.
These are the main steps you need to take when applying for Malaysia Business Licenses. Remember that to get the best results, you should consult an experienced professional who can help you navigate the process. At Paul Hype Page Malaysia, they specialize in helping startups and foreign investors get the licenses needed to start their businesses in Malaysia. They have the expertise and resources to make the process as smooth and stress-free as possible. Contact them today to learn more about how they can help you reach your business goals in Malaysia.