Q&A about setting up foreign-owned Limited Liability Company in Malaysia

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Drafted by Dale Chen 20230428 v1R-my-llc
Malaysia Foreign-funded Limited Liability Company
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Malaysia – Organizational Structure of Foreign-funded Companies
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What are the types of Foreign-funded Companies in Malaysia?
In Malaysia, there are several types of foreign-funded companies that investors can choose to establish, including:
1. Representative Office: A representative office is a type of foreign-owned company that is established for the purpose of conducting market research, promoting the business, or coordinating activities with local partners. Representative offices are not allowed to engage in profit-making activities in Malaysia.
2. Branch Office: A branch office is a foreign-owned company that is allowed to engage in profit-making activities in Malaysia. Branch offices are considered an extension of the foreign parent company and are subject to the same legal and financial obligations.
3. Limited Liability Partnership (LLP): An LLP is a type of business entity that combines the features of a partnership and a corporation. LLPs are a popular choice for foreign investors as they offer limited liability protection and can be owned and operated by a foreign individual or company.
4. Private Limited Company: A private limited company is a separate legal entity that is owned by shareholders. Foreign investors can own up to 100% of the shares in a private limited company in Malaysia.
5. Public Limited Company: A public limited company is a type of business entity that is listed on a stock exchange and can raise capital through the sale of shares to the public. Foreign investors can own up to 70% of the shares in a public limited company in Malaysia.

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What are the procedures of setting up the different types of Foreign-funded Limited Liability Company in Malaysia?

The procedures for establishing a foreign-funded limited liability company (LLC) in Malaysia can be summarized as follows:
1. Choose a Company Name: The first step is to choose a name for the company and submit that namethrough the online system of the Companies Commission of Malaysia (SSM).
2. Appoint a Company Secretary: A company secretary must be appointed within 30 days of company incorporation. The secretary must be a resident of Malaysia.
3. Register the Company with the Companies Commission of Malaysia (CCM): The application for registration must be submitted to the CCM, along with the required documents, such as the memorandum and articles of association, statutory declaration of compliance, and identity documents of shareholders and directors.
4. Obtain Business Licenses: Depending on the nature of the business, additional permits and licenses may be required before the company can start operations. These licenses and permits must be obtained from the relevant authorities.
5. Register with Tax Authorities: The company must register with the Inland Revenue Board of Malaysia (IRB) and obtain a tax identification number.
6. Open a Bank Account: The company must open a bank account in Malaysia and deposit the minimum required share capital.
7. Register with the Social Security Organization (SOCSO): The company must register with SOCSO and obtain social security numbers for its employees.
8. Register with the Employees Provident Fund (EPF): The company must register with the EPF and contribute to the provident fund for its employees.
9. Register with the Human Resources Development Fund (HRDF): The company must register with HRDF and contribute to the fund for employee training and development.

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What are the requirements for holding a position of director, manager/ supervisor, company secretary, etc. in Malaysia’s foreign-funded companies?

1. Director: A foreigner can be appointed as a director of a Malaysian LLC. However, at least one director must be a resident of Malaysia. The director must be at least 18 years old and must not have been declared bankrupt or convicted of any criminal offense.
2. Supervisor: A foreigner can be appointed as a supervisor of a Malaysian LLC. However, the appointment of a supervisor is not mandatory for all companies and depends on the business requirements. The supervisor must be at least 18 years old and must not have been declared bankrupt or convicted of any criminal offense.
3. Company Secretary: A company secretary is required for all Malaysian LLCs. The company secretary must be a resident of Malaysia and must be a member of a professional body approved by the Ministry of Domestic Trade and Consumer Affairs or an individual licensed by the Companies Commission of Malaysia (SSM).

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How long the share capital of a Malaysia Foreign-funded Limited Liability Company must be hold before it can be sold?

In Malaysia, there is no specific requirement on how long the share capital of a foreign-funded limited liability company must be held before it can be sold.
However, the company’s Articles of Association may contain provisions related to the transfer of shares, including any restrictions or conditions on the sale of shares by shareholders.
Additionally, the Malaysian Companies Act 2016 allows companies to impose restrictions on the transfer of shares, subject to certain conditions.
For example, a company may require that any transfer of shares must be approved by the board of directors, or that existing shareholders have a right of first refusal to purchase the shares before they can be sold to third parties.

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Is a Resident Shareholders required for incorporation of Foreign-funded Limited Liability Company in Malaysia?

No, a resident shareholder is not required for the incorporation of a Foreign-funded Limited Liability Company (LLC) in Malaysia.
While a resident shareholder is not required, it is common for foreign investors to appoint a local nominee shareholder who holds shares on their behalf.
This is done to comply with certain regulations and to facilitate certain transactions, such as opening a bank account in Malaysia.
However, it is important to ensure that the arrangement is properly documented, and that the nominee shareholder does not have any actual control over the company.

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Is a Resident Director required for incorporation of Foreign-funded Limited Liability Company in Malaysia?

Yes, at least one resident director is required for the incorporation of a Foreign-funded Limited Liability Company (LLC) in Malaysia.
According to the Companies Act 2016, a resident director is defined as an individual who resides in Malaysia and has a principal place of residence in Malaysia.
The resident director can be a Malaysian citizen, a permanent resident, or a foreigner who holds a valid work permit in Malaysia.
The resident director is responsible for managing the day-to-day affairs of the company and ensuring compliance with the relevant laws and regulations in Malaysia.
It is important to note that the resident director must not be disqualified from being a director under the Companies Act 2016. This means that the director must not be an undischarged bankrupt or convicted of any criminal offense.
In addition to the resident director, the LLC can have other directors who may be non-residents or non-citizens of Malaysia. However, the appointment of the resident director is a legal requirement for the incorporation of a Foreign-funded LLC in Malaysia.

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Is there a company secretary required for incorporation of Foreign-funded Limited Liability Company in Malaysia?

Yes, a company secretary is required for the incorporation of a Foreign-funded Limited Liability Company (LLC) in Malaysia.
Under the Companies Act 2016, every company in Malaysia is required to appoint a company secretary within 30 days of its incorporation.
The company secretary must be a natural person who is ordinarily resident in Malaysia and must hold a valid practicing certificate issued by the Malaysian Association of Company Secretaries (MACS).
The role of the company secretary is to ensure that the company complies with the relevant laws and regulations in Malaysia, and to maintain the statutory registers and records of the company.

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What are the qualifications of a legal representative in Malaysia in Malaysia Foreign-funded Limited Liability?
Can a foreigner act as a legal representative?
If yes, he/she need a place of residence in Malaysia?

The legal representative of a company in Malaysia is typically the director who is authorized to act on behalf of the company and make decisions related to its operations.
In Malaysia, a legal representative of a foreign-funded Private Limited Liability company must meet the following qualifications:

1. Be at least 18 years of age
2. Be of sound mind and not disqualified under any laws in Malaysia
3. Must be a resident of Malaysia
4. Must not have any criminal convictions or pending criminal charges
5. Must not have been declared bankrupt or involved in any bankruptcy proceedings

If the foreigner is a resident in Malaysia, he or she can act as the company’s director and legal representative.
This means that the director must have his or her principal or only place of residence in Malaysia.
If the foreigner is not a resident in Malaysia, the company must appoint a resident director who can act as the legal representative.

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Is it possible to establish a Malaysia foreign-owned company through an offshore company as holding company?

Yes, a company can establish a subsidiary or branch in Malaysia with an offshore parent company located overseas.
The offshore parent company can provide financial and management support to the subsidiary or branch in Malaysia. However, the subsidiary or branch must still comply with all the relevant laws and regulations in Malaysia.
When establishing a subsidiary or branch in Malaysia with an offshore parent company, it’s important to follow the proper procedures and requirements for registering a foreign-owned company in Malaysia.
This includes obtaining the necessary licenses and permits, registering the company with the Companies Commission of Malaysia, and complying with all relevant tax and employment laws.

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What are the special features of Malaysia wholly foreign-owned limited liability company (LLC)?

Foreign-owned private limited company, has several special features that distinguish it from other types of business entities in Malaysia:

1. 100% foreign ownership: A wholly foreign-owned LLC allows foreign investors to own 100% of the shares in the company, without the need for a Malaysian partner.
2. Limited liability: The liability of the shareholders is limited to the amount of their capital contribution in the company, which provides a level of protection for their personal assets.
3. Separate legal entity: A wholly foreign-owned LLC is considered a separate legal entity from its shareholders, which means that the company can own property, enter into contracts, and engage in legal proceedings in its own name.
4. Minimum share capital requirement: A wholly foreign-owned LLC must have a minimum paid-up share capital of RM1 (approximately USD 0.24).
5. Must have a registered office in Malaysia: The company must have a registered office in Malaysia, which is its official address for legal and communication purposes.
6. At least one resident director: The company must have at least one director who is a resident of Malaysia, although there is no requirement for the director to be a Malaysian citizen.
7. Must comply with Malaysian laws and regulations: The company must comply with all relevant Malaysian laws and regulations, including those related to taxation, employment, and business operations.

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Malaysia Foreign investment: permitted industries, restricted industries (licensed industries) and prohibited industries.
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Are Malaysia foreign-investment industries and products be listed in a positive or negative list?
Or are there different approaches for foreign investment from different countries?

Malaysia does not maintain a positive or negative list of foreign investment industries and products.
Instead, Malaysia has a more liberal approach to foreign investment, with relatively few restrictions on foreign ownership or investment in most sectors.
Foreign investors are generally allowed to invest in most industries and sectors in Malaysia, with some exceptions in sensitive industries such as defense and telecommunications.
In some cases, foreign investment may be subject to restrictions or additional requirements, such as obtaining certain licenses or permits.
There are also no specific approaches for foreign investment from different countries in Malaysia.
All foreign investors are subject to the same rules and regulations, and there are no discriminatory practices based on the country of origin.

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In the positive list, what are the industries that foreign investment is allowed to invest in, which are the industries that are restricted for foreign investment (licensed industries), and the industries that are prohibited to invest in by foreign investment?
Will the positive list be different for different countries?

Unlike some countries, Malaysia does not maintain a positive list of industries that are open to foreign investment, nor does it have a negative list of prohibited industries. Instead, the country has a relatively open investment policy, and foreign investment is generally permitted in most industries and sectors, subject to certain restrictions and requirements.
However, there are some industries that are subject to licensing and regulatory requirements, which may affect foreign investment.
These industries include:
Financial services: Foreign financial institutions are required to obtain a license from the Central Bank of Malaysia to operate in Malaysia.
Telecommunications: Foreign investment in the telecommunications industry is subject to restrictions and licensing requirements under the Communications and Multimedia Act.
Transport services: Foreign investors are required to obtain licenses and permits to operate in certain sub-sectors of the transport industry, such as air transport and shipping.

Healthcare services: Foreign investment in the healthcare industry is subject to licensing requirements under the Private Healthcare Facilities and Services Act.
Education services: Foreign investment in the education industry is subject to licensing requirements under the Private Higher Educational Institutions Act.
The positive list is not different for different countries.
Foreign investors from all countries are subject to the same rules and regulations for foreign investment in Malaysia.

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In the negative list, what are the industries that foreign investment is allowed to invest in, the industries that are restricted to foreign investment (licensed industries), and the industries that are not allowed to invest in foreign investment?
Will the negative list be different for different countries?

Malaysia does not maintain a negative list of industries that are prohibited for foreign investment.

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What are the restriction on foreign investment in Malaysia? For instance, what is the minimum share capital amount?
What are the rules for foreign shareholding ratio? Other?
Are they different for different countries?
Malaysia imposes certain restrictions and regulations on foreign investment, although they are relatively few. Some of the key restrictions include:
Licenses and approvals: For certain industries or products, such as finance, insurance, healthcare, education, and telecommunications, foreign investment must comply with relevant regulations and requirements. For example, foreign banks wishing to operate in Malaysia must obtain a license from the central bank and meet certain criteria such as minimum capital requirements and business scope.
Minimum capital requirements: Some industries or products may require foreign investors to meet specific minimum capital requirements before investing in Malaysia. For instance, foreign investors seeking to operate in the banking sector must have a certain amount of capital to establish their business in the country.
Foreign shareholding limits: Some industries or sectors may have specific foreign shareholding limits. For example, foreign investment in the insurance industry is limited to a maximum of 70% of the company’s total equity. However, most industries and sectors do not have specific foreign shareholding limits.
Other restrictions: Certain industries or products may be subject to more stringent conditions or restrictions, such as chemicals, medical devices, etc.
Regarding the different policies for different countries, Malaysia generally applies the same policies to all foreign investors. However, certain countries may be subject to different policies due to specific circumstances. For example, if a country imposes trade restrictions on Malaysian products, the Malaysian government may restrict or monitor investments from that country.


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What are the licensed industries in Malaysia?
What is the difference between the industries that allow foreign investment, the industries that restrict foreign investment (licensed industries), and the industries that do not allow foreign investment?

Licensed industries in Malaysia are industries that require a specific license or permit from the relevant authority, and they may also require the fulfillment of certain professional qualifications or certifications. Some of the licensed industries in Malaysia include doctors, nurses, lawyers, accountants, architects, and real estate brokers.
The difference between industries that allow foreign investment, the industries that restrict foreign investment (licensed industries), and the industries that do not allow foreign investment are as follows:
Industries that allow foreign investment: These industries are open to foreign investment and do not have any specific restrictions or licensing requirements for foreign investors. However, foreign investors must comply with Malaysia’s laws and regulations, as well as any specific requirements that may apply to their chosen industry or product.
Industries that restrict foreign investment (licensed industries): These are industries that require a specific license or permit from the relevant authority, and they may also require the fulfillment of certain professional qualifications or certifications. Examples of licensed industries in Malaysia include doctors, nurses, lawyers, accountants, architects, and real estate brokers.
Industries that do not allow foreign investment: Malaysia does not have a published “prohibited list” of industries or sectors for foreign investment. However, there are some industries or products that may be subject to specific regulations or require approval from government agencies before foreign investment can take place.
In general, Malaysia welcomes foreign investment and has a relatively open investment environment. However, some industries or products may be subject to specific regulations, restrictions, or licensing requirements.

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Malaysia-Foreign-funded Limited Liability Company document certification.
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What are the relevant investment documents required to establish a Foreign-funded Limited Liability Company in Malaysia?
Are there different documents for different countries?

To establish a foreign-funded private limited liability company in Malaysia, the following investment documents are typically required:

1. Memorandum and Articles of Association (MAA): The MAA outlines the company’s structure, management, and operations. It must be drafted in compliance with Malaysia’s Companies Act 2016.
2. Form 13A: This is a form that outlines the company’s directors and shareholders, their nationalities, and shareholdings.
3. Form 24: This is a form that outlines the appointment of the company’s first directors.
4. Form 49: This is a form that outlines the company’s secretaries, directors, and shareholders.
5. Statutory declaration by the company secretary or director: This declaration certifies that all the necessary requirements for the establishment of the company have been fulfilled.
6. Registration fee payment: This is a fee paid to the Companies Commission of Malaysia (SSM) for the registration of the company.
7. Business plan: A detailed business plan that outlines the company’s operations, financial projections, and market analysis.

These documents are generally the same for all foreign investors regardless of their country of origin. However, some countries may require additional documentation or have specific requirements for their investors.

R-my-llc-4 Malaysia – Bank Account Opening of Foreign Subsidiaries
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What is the sequence steps of set up a Foreign-funded Limited Liability Company in Malaysia with share capital paid in place and opening a bank account? Which one should come first?

Once the Certificate of Registration is obtained, the share capital must be deposited into a Malaysian bank account.
Open a bank account: After the share capital is deposited, the company can then proceed to open a bank account in Malaysia.
This is because the company must provide proof of the deposit of the share capital to the bank to open the account.

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What are the usual KYC regulations when opening a bank account with a Foreign-funded Limited Liability Company in Malaysia?

When opening a bank account with a Foreign-funded Limited Liability Company in Malaysia, the usual KYC (Know Your Customer) regulations typically include:

1. Company documents: The company’s registration documents, including the Certificate of Registration, the Memorandum and Articles of Association, and the Form 24 and Form 49.
2. Identification documents: The identification documents of all directors, shareholders, and authorized signatories, such as passports or national ID cards.
3. Business information: Details about the company’s business activities, the sources of funds, and the expected transaction volumes.
4. Proof of address: Proof of the company’s registered address, such as a utility bill or rental agreement.
5. Declaration of beneficial ownership: Information about the beneficial ownership of the company, including details of individuals or entities that own or control the company.

It’s important to note that the exact KYC requirements can vary depending on the specific bank and the type of account being opened.

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Will the bank require a Malaysia local director when opening a bank account for a Malaysia wholly foreign-owned limited liability company (LLC)?

It is not a legal requirement for a Malaysia wholly foreign-owned limited liability company (LLC) to have a local director to open a bank account in Malaysia.
However, some banks may have their own policies and requirements, and may request the appointment of a local director or a resident signatory as a condition for opening a bank account.
This is because having a local representative can help the bank to better manage the account, facilitate communication with local authorities, and ensure compliance with local regulations.
Additionally, having a local representative may also help to build trust and establish a relationship with the bank.
It’s important to note that the specific requirements can vary depending on the bank and the type of account being opened.
It’s recommended to check with the bank beforehand to ensure that all necessary requirements are met.

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Will the bank require foreign legal representative have to be physically present for the bank interview, when opening a bank account with a Foreign-funded Limited Liability Company in Malaysia?

Most banks would usually require a physical presence from at least one director.
This requirement may vary depending on the bank’s policy and the type of account being opened.
However, due to the COVID-19 pandemic, many banks have implemented remote account opening procedures and virtual interviews to comply with social distancing measures.
As a result, some banks may allow for virtual interviews or remote account opening without requiring the foreign legal representative to be physically present.
It’s recommended to check with the bank beforehand to confirm the interview requirements and whether virtual or remote account opening is possible.

R-my-llc-5 Malaysia – Staff Work Permit, Visa, and Residence
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Can a Foreign-funded Limited Liability Company in Malaysia send expatriates to Malaysia as the Investor’s role?
What are the application requirements, documents and procedures for the work permit, visa, and residence permit?
Are there differences in different countries?

Yes, a Foreign-funded Limited Liability Company (LLC) in Malaysia can send expatriates to Malaysia as the Investor’s role.
However, for expatriates to work legally in Malaysia, they must obtain the necessary work permit, visa, and residence permit.
The application requirements, documents, and procedures for the work permit, visa, and residence permit may vary depending on the type of work permit being applied for and the nationality of the expatriate.
Generally, the company will need to sponsor the expatriate’s work permit application and provide supporting documents such as a copy of the company’s registration certificate, a letter of appointment, and a copy of the expatriate’s passport.
The expatriate will also need to provide personal documents such as a passport, medical certificate, and proof of educational qualifications.
Additionally, the expatriate may be required to undergo a medical check-up and obtain a police clearance certificate from their home country.
Once the necessary documents have been submitted, the processing time for work permits, visas, and residence permits can vary, but typically takes several weeks to a few months.
The requirements and procedures may vary for expatriates from different countries.

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Can a Foreign-funded Limited Liability Company in Malaysia send expatriates to Malaysia as the employee role?
What are the application requirements, documents and procedures for the work permit, visa, and residence permit?
Are there differences for different countries?

Yes, a Foreign-funded Limited Liability Company (LLC) in Malaysia can send expatriates to Malaysia as employees.
In order for expatriates to work legally in Malaysia, they must obtain the necessary work permit, visa, and residence permit.
The application requirements, documents, and procedures for the work permit, visa, and residence permit may vary depending on the type of work permit being applied for and the nationality of the expatriate.
Generally, the company will need to sponsor the expatriate’s work permit application and provide supporting documents such as a copy of the company’s registration certificate, a letter of appointment, and a copy of the expatriate’s passport.
The expatriate will also need to provide personal documents such as a passport, medical certificate, and proof of educational qualifications.
Additionally, the expatriate may be required to undergo a medical check-up and obtain a police clearance certificate from their home country.
Once the necessary documents have been submitted, the processing time for work permits, visas, and residence permits can vary, but typically takes several weeks to a few months.
The requirements and procedures may vary for expatriates from different countries.

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What are the evaluation factors or requirements for a Foreign-funded Limited Liability Company in Malaysia when applying work permit, visa, and residence permit?
What is the relationship with the salary, capital, and turnover of Foreign-funded Limited Liability Company?
Are there differences for different countries?

When a Foreign-funded Limited Liability Company (LLC) in Malaysia applies for work permits, visas, and residence permits for its foreign employees, there are several evaluation factors or requirements that need to be considered.

Some of the key factors include:

1. Minimum salary requirements: Malaysia has a minimum salary threshold for foreign employees who are seeking work permits, visas, and residence permits. The minimum salary requirement varies depending on the type of work permit and the sector in which the company operates. It could range from a monthly salary of at least RM 5,000 to RM 10,000.
2. Capital and turnover requirements: The capital and turnover of the LLC may also be taken into consideration during the evaluation process. The Malaysian government may look at these factors to assess the financial stability of the company and its ability to pay its employees. For example, a 100% foreign owned company must have at least paid-up capital of RM 500,000.
3. Skills and experience: The Malaysian government may also evaluate the skills and experience of the foreign employees who are seeking work permits, visas, and residence permits. The government may prioritize employees with specialized skills or experience that are in high demand in Malaysia. It must be a managerial, executive, or technical position which requires specific skills.
4. Compliance with local laws: The LLC must also ensure that it is complying with all local laws and regulations related to employment and immigration. This includes obtaining the necessary permits and visas for foreign employees and complying with minimum wage requirements.

A company with a higher capital and turnover may be seen as more financially stable and therefore more likely to be able to pay its employees the required minimum salary. Additionally, employees with higher salaries may be more likely to be granted work permits, visas, and residence permits.

The requirements and evaluation factors for Foreign-funded LLCs in Malaysia may differ depending on the country of origin of the company and its employees. The Malaysian government may have different regulations and requirements for companies from different countries, depending on factors such as trade agreements and diplomatic relations.

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Malaysia- Registered Address and Operating Address of Foreign-funded Limited Liability Company in Malaysia.
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What are the regulations on the registered address during the company registration and future operating address of a Foreign-funded Limited Liability Company in Malaysia?

During the company registration process in Malaysia, a Foreign-funded Limited Liability Company (LLC) must provide a registered address for its business operations. The registered address is the official address of the company and is used for all legal and administrative purposes, including receiving official correspondence and serving legal notices.
The registered address must be a physical address located in Malaysia and cannot be a post office box or virtual office address.
The registered address can be the same as the company’s operating address, but it is not required to be.
Once the company is registered, it can operate from any physical address in Malaysia that is suitable for its business operations.
However, the company must ensure that it complies with all relevant regulations and obtains any necessary permits or licenses for operating from the chosen location.
It’s important to note that the registered address and operating address of a company in Malaysia must be updated with the Companies Commission of Malaysia (SSM) if there are any changes to the addresses.
This is to ensure that the SSM and other government agencies have the most up-to-date information on the company’s location and can communicate with the company as needed.

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What are the specific regulations or requirements of a registered office address for a permitted industry of an LLC in Malaysia?

The specific regulations or requirements for a registered office address for a permitted industry of a Foreign-funded Limited Liability Company (LLC) in Malaysia would depend on the industry in which the company operates.
Different industries may have specific regulations or requirements regarding the location and suitability of office premises.
For example, if the LLC operates in the manufacturing industry, there may be requirements for the premises to comply with environmental regulations and have sufficient space for the manufacturing processes.
If the LLC operates in the finance industry, there may be requirements for the premises to have security measures in place to protect confidential information.
However, in general, the registered office address for an LLC in Malaysia must be a physical address located in Malaysia and cannot be a post office box or virtual office address.
The office must be open and accessible during normal business hours and must be suitable for the type of business being conducted.
It’s important for the LLC to ensure that it complies with all relevant regulations and obtain any necessary permits or licenses for operating from the chosen location.
The Companies Commission of Malaysia (SSM) should be notified of any changes to the registered office address.

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Amount of investment, registered capital, and government fees for Foreign-funded Limited Liability Company in Malaysia.
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Are there any regulations on authorized share capital, registered share capital and paid-up share capital of a Foreign-funded Limited Liability Company in Malaysia?
Is there any requirement for minimum funds to be in place within a certain period?

The Companies Act 2016 governs the incorporation and operation of LLCs in Malaysia. Under this Act, a foreign-funded LLC must have a minimum authorized share capital of RM 1 million.
The general minimum paid-up capital of companies in Malaysia is RM 1.
However, for a 100% foreign-owned company, the minimum paid-up capital is RM 50,000 for advisory and consultancy businesses, and RM 1 million for import, export, restaurant, and trading businesses.
There is no specific requirement for a minimum amount of funds to be in place within a certain period for a foreign-funded LLC in Malaysia.

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What is the relation between government fees with authorized share capital, registered share capital, and paid-up share capital of a Foreign-funded Limited Liability Company in Malaysia?
The government fees are only based on the authorized share capital, and not on the registered or paid-up share capital.
In Malaysia, application fee for incorporation under section 14 of the Companies Act 2016 are as below :

Company limited by share	RM 1,000.00
Company limited by guarantee	RM 3,000.00

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Application of Certificate Number for a Foreign-funded Limited Liability Company in Malaysia
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What are the company certificate numbers needed to apply with the relevant legal entities for a foreign-funded Limited Liability Company in Malaysia?

1. Certificate of Incorporation: This is the certificate issued by the Companies Commission of Malaysia (CCM) upon successful registration of the LLC. The certificate confirms that the LLC has been incorporated and is authorized to operate in Malaysia. The certificate number is the registration number of the LLC, which is unique to each company.
2. Business Registration Certificate: This certificate is issued by the Inland Revenue Board of Malaysia (IRB) and is required for tax purposes. The certificate number is the Business Registration Number (BRN) of the LLC, which is also unique to each company.
3. Employer Registration Certificate: This certificate is issued by the Social Security Organization (SOCSO) and Employee Provident Fund (EPF) and is required if the LLC has employees in Malaysia. The certificate number is the Employer Code, which is assigned to the LLC upon registration with SOCSO and EPF.
4. Sales Tax and Service Tax (SST) Registration Certificate: This certificate is issued by the Royal Malaysian Customs Department (RMCD) and is required for LLCs engaged in the sale of taxable goods or services in Malaysia. The certificate number is the Sales Tax or Service Tax Registration Number, which is assigned to the LLC upon registration with RMCD.
5. Import and Export License: If the LLC is involved in importing or exporting goods, it may need to obtain an import and export license from the Ministry of International Trade and Industry (MITI). The license number is the Import or Export License Number, which is assigned to the LLC upon registration with MITI.

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What are the certificate application for the Foreign-funded Limited Liability Company in Malaysia as a tax entity?

Foreign-funded limited liability companies (LLCs) in Malaysia are required to obtain a tax identification number (TIN) and register with the Malaysian tax authority, the Inland Revenue Board (IRB), to be recognized as a tax entity.
In addition, the LLC may need to apply for certain certificates depending on the nature of its business activities and the requirements of the Malaysian government.

Here are some of the common certificates that a foreign-funded LLC may need to apply for in Malaysia:

1. Certificate of Incorporation: This is a legal document issued by the Companies Commission of Malaysia (CCM) that confirms the formation of the LLC.
2. Business Registration Certificate: This is a certificate issued by the CCM that registers the LLC’s business activities and is required for the LLC to carry out its business operations in Malaysia.
3. Tax Identification Number (TIN): This is a unique identification number issued by the IRB to identify the LLC for tax purposes.
4. Import and Export License: If the LLC engages in import and export activities, it may need to obtain an import and export license from the Malaysian government.
5. Halal Certification: If the LLC is involved in the production or sale of halal products, it may need to obtain halal certification from the Department of Islamic Development Malaysia (JAKIM).
6. Employment Pass: If the LLC plans to hire foreign workers, it may need to apply for employment passes from the Malaysian Immigration Department.
7. Environmental Impact Assessment (EIA): If the LLC’s business activities have an impact on the environment, it may need to undergo an EIA process and obtain an EIA approval from the Department of Environment.

The specific requirements and procedures for obtaining these certificates may vary depending on the type of business activities and the location of the LLC in Malaysia.

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What are the certificate application for Foreign-funded Limited Liability Company in Malaysia in relation to withholding tax on salary and employee benefits?

Foreign-funded Limited Liability Companies (LLCs) in Malaysia are required to register with the Inland Revenue Board (IRB) and obtain a tax identification number (TIN) in order to withhold taxes on salaries and employee benefits.
In addition, the LLC may need to apply for certain certificates related to withholding tax, depending on the nature of its business activities and the requirements of the Malaysian government.
Here are some of the common certificates that a Foreign-funded LLC may need to apply for in Malaysia in relation to withholding tax on salaries and employee benefits:

1. Monthly Tax Deduction (MTD) Number: This is a number assigned to the company by the IRB for monthly tax deduction purposes.
2. Employer Registration Number (ER): This is a unique identification number assigned to companies by the Social Security Organisation (SOCSO) and Employee Provident Fund (EPF) for social security contribution purposes.
3. Employment Income Reporting System (EIS): The Employment Insurance System Act 2017 requires employers to register and contribute to the EIS for the benefit of their employees in the event of job loss.

The specific requirements and procedures for obtaining these certificates may vary depending on the type of business activities and the location of the LLC in Malaysia.

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What are the other independent certificate numbers or application, or declaration related to the government’s jurisdiction for Foreign-funded Limited Liability Company in Malaysia?

Some of the common ones are:

1. Trade License: If the LLC engages in trading activities, it may need to obtain a trade license from the local authorities.
2. Work Permit: Foreign workers employed by the LLC may require work permits issued by the Malaysian Immigration Department.
3. Industrial License: If the LLC engages in industrial activities, it may need to obtain an industrial license from the Malaysian Industrial Development Authority (MIDA).
4. Environmental Permit: If the LLC’s business activities have an impact on the environment, it may need to obtain an environmental permit from the Department of Environment.
5. Land Use Planning Approval: If the LLC intends to develop land, it may need to obtain approval from the local planning authorities.

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To summarize: Which of the following certificate numbers do Foreign-funded Limited Liability Company in Malaysia need to apply for?

National (federal) company certificate number, provincial (state) company certificate number, national (federal) tax certificate number, provincial (state) tax certificate number, national value-added tax certificate number, provincial (state) value-added tax certificate number, social insurance card number, medical insurance card number, pension certificate number, other funds such as housing fund certificate number, labor union certificate number, import and export certificate number, and franchise industry certificate number.

Foreign-funded Limited Liability Companies (LLCs) in Malaysia are required to apply for the following certificate numbers:

1. National (federal) company certificate number: Foreign-funded LLCs need to apply for a Certificate of Incorporation issued by the Companies Commission of Malaysia (CCM) to confirm their formation.
2. National (federal) tax certificate number: Foreign-funded LLCs need to obtain a tax identification number (TIN) from the Inland Revenue Board (IRB) to be recognized as a tax entity.
3. Withholding tax-related certificate numbers: Foreign-funded LLCs may need to apply for certificate numbers related to withholding tax on salaries and employee benefits, such as Monthly Tax Deduction (MTD) Number, and Employer Registration Number (ER).
4. Other certificates: Depending on the nature of their business activities and the requirements of the Malaysian government, Foreign-funded LLCs may need to apply for other certificates, such as Business Registration Certificate, Trade License, Industrial License, Environmental Permit, Work Permit, and Land Use Planning Approval.

Foreign-funded LLCs are not required to apply for provincial (state) company certificate number, provincial (state) value-added tax certificate number, social insurance card number, medical insurance card number, pension certificate number, other funds such as housing fund certificate number, labor union certificate number, import and export certificate number, and franchise industry certificate number.

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Incorporation procedures of Malaysia -Foreign-funded Limited Liability Company and key matters
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What are the procedures of setting up a Foreign-funded Limited Liability Company in Malaysia? Documents required? Competent Government unit? Websites?

The procedures for setting up a Foreign-funded Limited Liability Company (LLC) in Malaysia are as follows:

1. Choose a company name: The first step is to choose a company name and conduct a name search with the Companies Commission of Malaysia (CCM) to ensure that the name is not already taken.
2. Obtain approval from the relevant authorities: Depending on the nature of the business activities, the company may need to obtain approval from the relevant authorities such as the Malaysian Investment Development Authority (MIDA) or the Ministry of International Trade and Industry (MITI).
3. Prepare and file the necessary documents: The company needs to prepare and file the necessary documents with the CCM, such as the Memorandum and Articles of Association, Form 13A, and Form 49.
4. Open a bank account: The company needs to open a bank account with a local bank in Malaysia and deposit the minimum share capital required.
5. Obtain relevant licenses and permits: Depending on the nature of the business activities, the company may need to obtain relevant licenses and permits from the relevant authorities such as the Department of Environment, the Immigration Department, and the local council.
6. Register for taxes: The company needs to register with the Inland Revenue Board (IRB) and obtain a tax identification number (TIN) to be recognized as a tax entity.

The documents required to set up a Foreign-funded LLC in Malaysia include the following:

1. Passport copies of all shareholders and directors
2. Proof of residential address of all shareholders and directors
3. Memorandum and Articles of Association
4. Form 13A and Form 49
5. Bank reference letter
6. Business plan
7. Relevant licenses and permits.

The competent government unit for registering a Foreign-funded LLC in Malaysia is the Companies Commission of Malaysia (CCM).
The website for the CCM is www.ssm.com.my.
In addition to the CCM, the company may also need to deal with other relevant government agencies depending on the nature of their business activities, such as the Malaysian Investment Development Authority (MIDA) and the Department of Environment.
The website for MIDA is www.mida.gov.my and the website for the Department of Environment is www.doe.gov.my.

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What are key consideration matters of when deciding to set up foreign-funded limited liability company in Malaysia?

When deciding to set up a Foreign-funded Limited Liability Company (LLC) in Malaysia, some key considerations to keep in mind include:

1. Business scope and industry regulations: It is important to understand the regulatory environment and business scope of the industry in which the company will operate. This includes any specific licenses or permits required by regulatory authorities.
2. Market potential: Consider the market potential and demand for the company’s products or services in Malaysia.
3. Local partner: In some cases, a local partner may be required to set up a Foreign-funded LLC in Malaysia. The local partner can provide local knowledge and connections that may be beneficial for the business.
4. Taxation and regulatory compliance: It is important to comply with Malaysian tax and regulatory requirements, including obtaining the necessary licenses and permits.
5. Labor laws and regulations: Malaysia has specific labor laws and regulations that need to be followed by employers, such as minimum wage requirements, social security contributions, and work permit requirements for foreign employees.
6. Infrastructure and resources: The availability of necessary infrastructure and resources, such as transportation and communication networks, should be considered when setting up a business in Malaysia.
7. Cost of doing business: The cost of setting up and operating a business in Malaysia, including the cost of labor, office space, and utilities, should be considered.
8. Cultural and language differences: Cultural and language differences may pose challenges in doing business in Malaysia, and it is important to be aware of these differences and to adapt to the local culture.
9. Political stability and security: The political stability and security situation in Malaysia should also be considered when deciding to set up a business in the country.

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