About business in exchange, discount, retail and administration enterprises in Malaysia

exchange, discount, retail and administration enterprises in Malaysia

Regardless of whether to begin a business as a personal business Outsiders are not permitted to enroll as sole ownership in Malaysia.

ownership, so on the off chance that you start a business, you should set up an enterprise.

At the point when an outsider works in Malaysia,
he/she apply for an Employment Pass (frequently alluded to as a “working visa”) to the Immigration Department through being recruited by the enterprise that he/she set up. It will be.

Timing of work visa application and application flow

You cannot apply for a work visa before establishing a corporation, so
first establish a corporation without a visa.
and then apply for a work visa.

exchange, discount, retail and administration enterprises in Malaysia

Also, to apply for a work visa, it is also necessary to obtain an office or store contract or a license required for business in advance.

The visa application process changes quite often and is different on a case-by-case basis, so it’s difficult to say in a nutshell, image is as follows (the order may change or progress at the same time). You may proceed with).

  • Establishment of corporation
  • Opening of bank account
  • Deposit of capital
  • Capital increase procedure
  • Office contract and recruitment of Malaysian staff
  • Acquisition of business office license, signboard license, etc. from the city hall that has jurisdiction over your office location
  • Obtain a license from the ministry or agency that has jurisdiction over your industry
  • Register your company with the Immigration Bureau
  • Apply for an individual visa

About the license required to start the business

The license (license) that you need to obtain
to do business depends on various factors such as the state in which you do business, the nature of your business, and whether or not Malaysians have invested.

In the following, foreign-affiliated companies

Import business: I want to import and sell Japanese and overseas products to Malaysia.
Export business: I want to export Malaysian products overseas (export business).
Retail: I want to run a retail store in Malaysia.
Service industry such as consulting industry: I want to do consulting industry (and other service industry) based in Malaysia I will explain the license that you generally need to obtain when doing such a business.

WRT permission (Wholesale Retail Trading Approval)

The above-mentioned industries are under the jurisdiction of the Ministry of Domestic Trade, Co-operatives & Consumerism ( MDTCC ).

MDTCC is involved in retail, wholesale and service industries.
published in May 2010 for.

exchange, discount, retail and administration enterprises in Malaysia

Guidelines for foreign capital to enter the distribution transaction service industry (Guidelines On Foreign Participation In The Distributive Trade Services Malaysia)
Https://Www.Kpdnhep.Gov.My/images/dokumen/perdagangan/perdagangan-pengedaran/WRT_Guideline.Pdf

Is applied.

In the guideline,
stipulate that foreign companies and foreigners must obtain WRT permission (Wholesale, Retail Trade Approval) from MDTCC in advance before entering the above business.

It is not a law because it is a guideline, but when applying for a work visa for expatriates, the Immigration Department requires foreign companies to attach this WRT permit. foreign capital that requires a work visa As a foreign-affiliated company, it is a guideline that must be observed.

In addition, as a condition for obtaining approval, the paid-up capital (Paid-up Capital) is “at least 1 million ringgit or more” (= about 28 million yen or more), so it is a fairly high hurdle for small and medium-sized enterprises. It has become.

By the way, what kind of case is “when foreign capital enters”? read the MDTCC guidelines literally, you can read that if even 1% of foreign capital is included, this guideline will be applied.

However, in practice, the Immigration Department, which is the visa application destination, requires a WRT permit only for companies in which foreign companies/foreigners exceed 50% of the capital, so in practice, “Malaysian capital” WRT is exempted if you own 51% of the company. ”In fact, there are cases where Malaysians do not have WRT if they own more than 50% of the capital. There are many.

Business license (and signboard license)

If you set up an office or store, you need to obtain a business premise license from the city hall (Local Council) that has jurisdiction over the area.

In addition,
it is necessary to obtain a signboard license for the signboard installed in the office, so generally apply together with the Business Premise License Malaysia.

exchange, discount, retail and administration enterprises in Malaysia

In addition, application procedures, requirements, required documents, etc. for business licenses, etc. differ for each city hall.

About the required capital amount

Companies that need to acquire WRT Approval (= companies in which foreign capital holds the majority of capital)

Companies that do not need to acquire WRT Approval (= companies in which the majority of the capital is owned by Malaysians)

In this case, it is not necessary to obtain a WRT permit, so a
capital of 1 million ringgit is not required.

However, even in that case, the following
capital amount set by the Immigration Department is required to apply for a work visa.

  • For 100% Malaysian capital: RM250,000 or more
  • For joint venture with Malaysian capital: RM350,000 or more

Do you actually need to pay

The above “capital amount” does not refer to authorized capital, but to paid-up capital that was
actually paid in, so it is actually transferred from shareholders to the corporate account. , You need to go through the capital increase procedure.

Procedure flow and required period

As mentioned above, the general flow is as follows.

However, on a case-by-case basis, the procedures may be mixed up,
and some may proceed at the same time.

  • Establishment of corporation: From the start of preparation to the completion of registration, it is generally not necessary to travel to Malaysia for a few weeks to a month, but at least one director who needs an address in Malaysia is required, so in Malaysia You will need to come to Malaysia to arrange your address.
  • Opening a bank account: You will need to come to Malaysia for two weeks to one and a half months after the interview with the bank employee to meet with the bank employee. The time required will vary greatly depending on which bank you use.
  • Deposit capital: About a week from remittance procedure in Japan to payment to Malaysia.
  • Capital increase procedure: Several weeks from signing the capital increase application documents to completing registration.
  • Acquisition of business license from city hall: About 1 month from preparation starts to license acquisition.
  • Obtaining a license from the ministry or agency that has jurisdiction over your industry: It takes several months to half a year from the start of preparation to the acquisition of a license. Or more. License review is very time-consuming.
    In addition, the required period varies greatly depending on the examination schedule and the officer in charge on the ministry side.
    is difficult to predict the required period.
  • Company registration with the Immigration Department: It takes several months to half a year from the start of preparation to the acquisition of a license. Or more. It is difficult to predict the required period because the required period varies greatly depending on the examination schedule and the officer in charge of the Immigration Bureau side.
  • Individual visa application: A few weeks to a month after application.

Difficulty

Registration of company establishment is not so difficult, but
subsequent account opening, license application, visa application is very time-consuming and examination is strict.

Due to the influence of the Malaysian special feature broadcast in Japan,
many people have the image that it is easy to start a business or obtain a visa in Malaysia, but TV programs emphasize only good scenes. The
difficult part on the backside of the cage is intentionally cut.

In reality, it’s many times more difficult than you might imagine.
time-consuming. Basically, the Malaysian government only issues
licenses and visas to “companies that provide products and services that Malaysians and Malaysian companies cannot provide”.
“positions that Malaysians cannot substitute”. , Work visas are only issued to “foreigners in charge of job titles” and “foreigners with skills that Malaysians cannot replace”.

We, therefore,
to licensed folding hard to, such as “trade companies such as Malaysians have done already”, is difficult to get a work visa for the position that the mere “office work staff” “restaurant waiters” is.

Procedure fee

It depends on the case.
Please feel free to contact us as we will quote individually.

Mail Us:
contact@sfconsultingbd.com

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