Southeast Asia is a popular destination for many entrepreneurs, mainly from Europe and Malaysia has much to offer a foreigner in terms of comfortable living, which enables the foreign investor to spend a few months a year in Malaysia and set up a business, which they can manage remotely.
Professional Employer Organisation (PEO)
Using PEO, you can hire employees without the red tape that normally comes with recruitment; the provider is the employer. Why wait until you set up a business entity? PEO enables you to put people on the ground quickly, while remaining compliant with local laws. If you would like to learn more about PEO and EoR (Employer of Record), search online for a leading international law firm with offices in Malaysia and let the experts show you how these services can benefit your Malaysian business.
Registering the business
If you want to set up a company in Malaysia, there are 3 options, as follows:
- Representative Office RO – If a foreign business wishes to carry out market research in Malaysia, opening a Representative Office is ideal; the non-trading entity supports foreign employees and with limited business activities. The office is not subject to local compliance and this is a temporary option, with a time limit.
- Private Limited Company – A trading entity with limited liability, setting up a PLC can be 100% foreign-owned and is subject to local laws; enjoy unlimited business activities and you can outsource payroll and other essential aspects of managing your business.
- Foreign branch office – An established foreign company can open an office in Malaysia, with a trading entity and no restrictions. You can obtain work visas and hire a foreign manager; you need one Resident Agent, while the entity is not limited regarding duration, you can run your local office for as long as you wish. You enjoy non-resident tax status and this can lead to further branches in the future. Click here to learn about worker compensation laws.
Sourcing local employees
Of course, you will need local staff to run your business, from general secretaries to bookkeeping staff and your law firm partner can put you in touch with reliable 3rd party providers; when you are ready, a team of remote employees will carry out the essential tasks that come with running a business.
Remain compliant
When operating a business in a foreign country, it is critical that you remain compliant with local laws, rules and regulations. You can take compliance for granted when you engage the services of an established law firm; they ensure that all government directives are met and all documentation is submitted in good time.
Preparing the documents
Registering a business in Malaysia demands that you produce many documents; you also have to open bank accounts, in keeping with Malaysian government guidelines. Once everything is in the hands of the lawyer, the application is submitted and the process usually takes from 7-10 days.
