# Setting up business in Malaysia



## kelfish

Hi,

I am from the UK and am looking to set up a small business in Malaysia (probably KL).

I have heard it is difficult for somebody who is not Malaysian to do this (I believe to set up a company 250,000MR have to be invested). Are there any particular businesses to avoid (there seem to be an awful lot of businesses/restaurants for sale at low prices)

Does anybody have any experience in setting up and running a small business in Malaysia? 

Also, any other recommendations for a place other than KL would be welcome. 

Any assistance would be greatly appreciated.

Many thanks in advance
Kelfish


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## eryepe

What kind of small business that you are talking about? Do you already have the ideas or want to find a new one here?


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## veriya

Malaysia is a place where people are crazy abt food, so you can never go wrong with a restaurant.
that being said, many do fail in it, thats because they are not familiar/ or doesnt know the basics of running a business .


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## Diong

*Set up company in Malaysia*

Since you have mentioned RM250,000 in setting up company, I assumed that you intend to incorporate a company in Malaysia to run your business. RM250,000 is merely referring to the Authorised Share Capital ("ASC") of Malaysia companies.

You are not bound to pay RM250,000, ASC merely indicate a limit of paid-up capital that a company can allot.

Before April 2013, most companies were incorporated with Authorised Share Capital of RM250,000 because the minimum registration fee payable to the Companies Commission of Malaysia (Registrar of Companies in Malaysia) is RM1,000 for ASC of up to RM250,000. But after 1st April 2013, with this same fee, a company can have a ASC of up to RM400,000. So, having said with the same fee, one would choose to incorporate a company having ASC of RM400,000 instead of RM250,000.

The law in Malaysia is that as long as you have minimum 2 resident directors (can be both foreigners if their main place of residential are in Malaysia), 2 shareholders (can be both foreigners as well, no need to stay in Malaysia) subscribing minimum RM2 paid-up share in total and having 1 company secretary, you can incorporate a company. So, the investment amount you need is your budget ie money that need to set up your restaurant/other business.

Difficult to do business in Malaysia? What I can say is incorporate a company in Malaysia has no issue and it is easy. If your documents are ready (duly signed by directors and subscribers ie shareholders), the company can be incorporated in 1-2 day time. But if your business need to tender to Malaysia Government to get Government or Government related project, then you need to comply with Bumiputra requirements [depend on what projects, some even need 100% Bumiputra directors/shareholders/management team, some request 30% (may include Bumiputra staff), vary depends on what project]. 

For restaurant, I think there is no such restriction, I am not sure. You can visit website of DBKL (Kuala Lumpur City Hall) if you intend to do your business in Kuala Lumpur. You can email to DBKL to ask for details as most of business licenses are issued by DBKL.

Hope this help.



kelfish said:


> Hi,
> 
> I am from the UK and am looking to set up a small business in Malaysia (probably KL).
> 
> I have heard it is difficult for somebody who is not Malaysian to do this (I believe to set up a company 250,000MR have to be invested). Are there any particular businesses to avoid (there seem to be an awful lot of businesses/restaurants for sale at low prices)
> 
> Does anybody have any experience in setting up and running a small business in Malaysia?
> 
> Also, any other recommendations for a place other than KL would be welcome.
> 
> Any assistance would be greatly appreciated.
> 
> Many thanks in advance
> Kelfish


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## Estrelle

I believe if you can get a local recommendation or partner, things will be way easier for you.


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## Moe599

Hello


I am in the same boat. The whole thing about getting a local director to set up your company is rather awkward. How do you find this person that you could just go up to and ask and how can you trust them? I met with a accounting company and they said they could put themselves on as directors but they charge a high monthly fee. It's rather frustrating!


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