Tips For Foreigners Opening A Retail Shop In Malaysia
Steps For Foreigners To Start One Of The Listed Retail Companies In Malaysia
Malaysia is a utopia for the right business minds. The market is vast and competitive, just like what great entrepreneurs would want it to be. Anyone would want to have a business running in such a place. If you are thinking of opening a retail shop in the country as a foreigner, you are like thousands of others who are looking to give wings to their idea. Still, there might be many questions in your mind. So today, we give you some tips for opening a retail shop in Malaysia.
Make sure you put your hands into something that is going to give you considerable returns. Analyze the Malaysian market at first and make sure that your business is actually the right kind to start in the country. Look at the competitions and have an idea that will make your product unique from each and every one of them. Also, make sure you have the right business strategies, and you can sync with the Malaysian market, being able to modify your business when the Malaysian market changes its course.
Can You Own Your Business 100%?
After you choose a type of retail shop in Malaysia, take some time to research if 100% foreign ownership is available to the type of the retail shop you are looking to open in Malaysia. There are only some selected business types or companies that foreigners can completely own in the country. If you can’t, then you could consider having local shareholders or partial owners.
How To Open A Company in Malaysia?
Registering Your Business
Before you do anything with the business, you will need to register a company with Suruhanjaya Syarikat Malaysia (SSM). These are the steps you follow for a while registering your retail shop in Malaysia.
As a foreigner, you are not allowed to have a sole proprietorship or partnership. The only option you have is Sdn Bhd (Sendirian Berhad), which is another name for private limited with shares.
Registration Fees and Paid-Up Capital
Registration fees and the minimum paid-up capital all depend on the type of the services your business is going to offer. For example, for restaurant and trading businesses, it is 1million whereas for consultancy business is RM500,000. Anyway, remember, this also depends on whether your business is 100% foreign owned or joint venture. For a joint venture, the minimum paid-up capital could be at minimum RM350,000 while for authorized capital, it is RM500,0000.
You will need at least one shareholder and a director for your company. The director(s) should be Malaysian citizens or permanent residents and 18 years or older. Also, they can’t be bankrupt.
It could take a minimum of 3 to 5 days to register your business.
After you register your business, you will need to acquire all the permits necessary for the goods or services you provide. This is a very important step, and it will be a lot easier if you hire a lawyer.
Malaysian Corporation Tax
If the annual profit doesn’t exceed RM500, 000, and you meet some conditions, you will also need to apply for the Goods and Services Tax (GST).
There are various visa options available to you, but one of the most preferred is the DP10-2 years’ work permit. Still, this is up to you, see what could be convenient.
Also, while registering your retail shop, you will have to propose three names to see if in case they are available. If you think registering the business is somehow confusing to you, you could hire a local agent who will help you through the entire process of company registration in Malaysia.
These were the tips for opening a retail shop in Malaysia. I hope this article will help you. Besides, to learn more, you can read about an expatriate guide to starting a business in Malaysia as foreigner and foreigner setup.