# Starting a business in Penang



## waterbabe

Hi there,

New to this forum, so be kind. I've looked back a few months and can't see any threads on starting a business in Penang, so had to start a thread of my own. 

Information I've found online about setting up a business in Malaysia suggests that I will need to invest a substantial amount of money as an expat, is this true? Is it possible to set up on my own without Malaysian partners, or do I have to have local investors? 

I've seen a site, Invest Penang, that seems to offer help to potential investors, but I can't see who to write to as it redirects me to the Malaysian Investment Development Authority website, a national institution - is the Invest Penang site any use? 

Is anyone prepared to share their own experience of setting up a small business in Penang, how best to go about it and who to contact? It's in the healthcare industry and will be a one man band to start with but will hopefully grow!

Any and all advice/information gratefully accepted.


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## joteh

Hi,


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## waterbabe

No-one? I have to say, looking through the forums I was hopeful that I might get some help, but it's not going well so far. ANy information/advice/links gratefully received!


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## joteh

Sorry, I didn't know that my message to you was broken.
You may want to look at womenbizsensedotcom/
This is a business networking site in Penang.
They might be able to give you some solid pointers.
All the best!


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## joteh

I just found out that because I gave you a link, this expat system blocked me out.
It's their newbie policy.


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## waterbabe

Thank you for that and hopefully it didn't get you in to trouble with the authorities. I'll have a look at the website, all and any extra information gratefully received.


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## Pete108

*Establishing business in Malaysia*

Hi

I too am interested in establishing a business in healthcare in Penang, Pilates to be specific. From my investigations you need to have two Malaysian nationals as company directors, and one Malaysian national as company secretary. You also must have MR100,000 in paid up share capital, including stamp duty. 

The Malaysian national directors and secretary can be completely non share owning and are usually paid an annual fee established by negotiation. I think I saw 10% of net profit as one suggestion (can't remember if that was each or for all 3).

If anyone has anything to add I'd be interested in hearing. 

Thanks. Pete


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## anneteoh

HI
I'm pondering doing business with a small group of people for some years now - mainly in education, involving teaching, consultancy work and accelerated learning projects; including meditation, healthy eating and cooking. I'm in the UK but going that way from December onwards.
What's pilates and can you expand your healthcare with meditation and healthy eating? If so, I can consider filling one of the posts but everything has to be legally set up.
Best of luck.


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## dashmin

i can help u ... how and please advise me ...


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## omores

Pete108 said:


> Hi
> 
> I too am interested in establishing a business in healthcare in Penang, Pilates to be specific. From my investigations you need to have two Malaysian nationals as company directors, and one Malaysian national as company secretary. You also must have MR100,000 in paid up share capital, including stamp duty.
> 
> The Malaysian national directors and secretary can be completely non share owning and are usually paid an annual fee established by negotiation. I think I saw 10% of net profit as one suggestion (can't remember if that was each or for all 3).
> 
> If anyone has anything to add I'd be interested in hearing.
> 
> Thanks. Pete


Best that you check with those companies who can help you with the formation of companies and etc. They will be able to provide you with detailed answers and best how-tos. At a fee of course.

In terms of director salaries / remuneration, you can establish either:
1. fixed salaries
2. Salaries based on dividends (profit / revenue based on share holdings / just a fixed percentage based on total)

All must be pre-discussed and agreed upon in black and white.

https://www.google.com.my/search?q=...s=org.mozilla:en-US:official&client=firefox-a


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## Etherus

I have a company registered in Malaysia since 2009. It has 2 expat shareholders and we have 3 directors, 2 expat and 1 (non-compulsory) Malaysian Director. 

We need to have a Malaysian registered Company Secretary who is also our accountant. Our books need to be audited each year. 

The difference with a fully expat owned company is that you will need larger paid up capital (nominally 500,000 RM) than if it was wholly a a Malaysian or predominant Malaysian shareholding if you want to do anything that requires a license.


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## Etherus

As an additional post, I would like to advise that we are presently establishing a co-sharing workspace in Georgetown that is dedicated to small businesses and in particular start-ups. We hope to have this in operation by June 2013 if anyone is interested. Space will be available on an ad hoc basis with 3 day passes to annual passes. Current information can be seen on our website bluehousepenang.com with photos that are indicative of the type of space being arranged.

Our features will be to provided back up resources to small business such as book keeping, mentoring, links with venture capital partners, some corporate sponsorship and the like. The main feature will be the ability of people to physically network with others at a similar level. People can contact me directly through the website if they want more information.


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