Major Problems Faced by Foreigners Of Malaysia Sdn Bhd Company

 
  There are many new policies changes in recent few months from Malaysia various authorities and bankers which made many foreigners trapped after they registered their Malaysia Sdn Bhd company. The major problems faced by foreigners of Malaysia local company Sdn Bhd is as follows:
 
 
  1. Foreign investors unable to open company’s bank account.
  2. Foreign investors cannot apply working permit under their new company.
  3. Foreign investors may not able to increase his/her company’s paid-up capital.
  4. Foreign investors required at minimum of RM1 mio paid up capital and required WRT license to approve the 100% foreign ownership applicable only to “unique” business concept where Malaysians cannot do.
  5. Unable to renew the trade license and/or work permit after two  years of expiry date.

 
 

Registration of Local Resident Sdn Bhd Company- Facts you should know!

  Company secretary or local friends may agreed to provide the service of local nominee directors and shareholders, at such you may be able to get:
 
 
  • Company bank account opened
  • Lower paid up capital of only RM350,000 instead of RM 1 million and waived of WRT license.
 
However, there is still a risk of work visa which may or may not approve by Immigration Department. The approval is very subjective, company is new, no profile to justify.

Under the CCM (Companies Commission Malaysia) Company Act, all directors are required to sign company documents and resolutions. A company status is deemed a "local resident" company where minimum 50% shares of the Company is owned by local Malaysians. But you may face real risk is at any one time in near future, where the nominees may not turn up for any company meetings, signing company resolutions, financial reports, etc for company compliance or the nominees’ names may be possibly blacklisted in the central bank system if they do not take care of their personal finance. Any of these happen will jeopardize your day to day company operations and onward renewal of your working visa.
 
Also the expansion can be limited. As a start when the company is new, the investment is small, it is pretty alright. However, when the capital or sales size ballooned up to few millions, you may have sleepless nights thinking how to safe guard your interest in the company all the time! For those who has assigned nominee as the cheque signatories, the issues are even more serious if the nominees refuses to further co-operate to sign cheques and assist in the banking!!

 
 
 

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