When you think about Malaysia for starting a business, most of us think about the exciting business opportunities with developed infrastructure. At the same time, you may have to face some challenges. To stay away from those difficulties, you should have a comprehensive knowledge of potential challenges.
We are here to assist you with key challenges foreigners face when starting a business in Malaysia. Key challenges foreigners face when starting a business in Malaysia. Most importantly, we will share how to overcome them. This is going to be highly beneficial for the businessman looking for company registration in Malaysia.
The first challenge foreigners face is to get an entry permit for starting a business in Malaysia. On that note, 4 types of entry permit categories are available for foreigners. Those categories are applicable to investors and experts, professionals, spouses of Malaysian citizens, children of Malaysian citizens below the age of six, and the point system.
To get the first step done, you have to apply for entry permits based on your suitable category. People who are interested in company registration in Malaysia for foreigners fall under the category of investors. You need to have one Malaysian sponsor to get an entry permit as an investor. A fixed deposit of a minimum of USD 2 million at any bank in Malaysia is another criterion for eligibility.
Getting an entry permit is not sufficient to start your business in Malaysia straightway. You need to have a corporate bank account to operate your business in Malaysia. It will be better to open a corporate bank account while being physically present. Apart from a few banks, most of the banks in Malaysia are open for foreigners to get a business account.
You have to provide the required documents and other legal permits to get a corporate bank account. You can get assistance from SFM Consulting Firm to get consultancy about that. They will inform you about the required documents. Also, they will help you to go through the procedure. You can consider choosing Maybank, CIMB, Public Bank, and OCBC.
According to the most recent survey, more than 3,056 foreign affiliates operate in Malaysia. Getting a business license is the most important factor in starting a business in Malaysia as a foreigner. License requirements are different for specific business industries. Also, it will depend on which type of business you are willing to operate. For example, some additional licenses will be required for healthcare-related businesses.
Some common general business licenses are Company registration, Company & Employee’s Income Tax Registration, Employee Provident Fund (EPF), Social Security Organization (PERKESO), Human resources development fund (HRDF), Business premise licenses, and signboard licenses. Those licenses are applicable for manufacturing, wholesale and retail trade, telecommunication sector broadcasting, oil exploration, and construction sectors.
Malaysia is a Muslim country. You have to get the halal certification with any sort of Food and some other day-to-day life items like perfume. The halal certificate is provided by the Department of Islamic Development Malaysia (JAKIM). According to the Global Islamic Economy Index, Malaysia has maintained the top position among 81 countries for the 10th consecutive year in halal standards.
So, that will be a mandatory process for food & beverages, pharmaceuticals, health products, cosmetics, personal care, consumer goods, household products, industrial chemical products, halal logistics and services. Apart from the JAKIM, you can also obtain the halal certification from any foreign halal-certified organization recognized by the JAKIM. So, you have to ensure ingredients are halal and choose suppliers who maintain halal standards.
To make your business sustainable in the long run, you have to consider those key challenges foreigners face when starting a business in Malaysia. Thankfully, you have learned how to overcome them. You have to stay alert to identify any of those potential challenges in your business.
To get business registration consultancy in Malaysia, SFM Consulting Firm could be the best choice for you. When you register your company in Malaysia through them, they will inform you of essential business information. They have more than 8+ years of experience in company registration in Malaysia for foreigners.
A. Multiple types of business opportunities are available in Malaysia. You have to do the Market research to find out which one would be profitable and suitable for you. Then, you have to develop a business plan to establish your business. Finally, register your business and execute your business plan.
A. Lack of budget, lack of human resources, limited opportunities for the latest technology, and lack of proper market research are some of the most common problems with small businesses in Malaysia. To grow your small business, you have to overcome those issues.
A. The first challenge is to complete the business registration process. You just can not start a random business without having knowledge about the sector. After starting a business, many foreigners face difficulties with tax and other business-related permits.
A. You may face difficulties because of external pressures. Besides, export dependency sometimes produces cyclical risk. At the same time, the Malaysian business environment seems to deteriorate if you don’t have enough knowledge of the business sector.
A. 4 major business risks in Malaysia are strategic, compliance, operational, and reputational risks. Those factors could be influenced by internal or external causes. To overcome those risks efficiently, you should have a proper plan and adaptable dynamic business strategy.
Sources:
https://www.mybizhub.my/guide-to-opening-business-bank-accounts-for-smes/
https://www.halaltimes.com/over-90-of-malaysian-companies-achieve-halal-certification-compliance/
Author Bio:
Writer:
Content Is Written By:
Mia Biajid – Business & Finance Content Writer
Mia Biajid is a professional content writer with six years of experience in writing informative content in the business sector. He has a deep understanding of market trends, entrepreneurship, and financial strategies. Mia specializes in delivering insightful articles that help businesses to grow. His expertise covers business development, investment insights, and corporate strategies. Having that much experience makes him a trusted voice in the business industry.
Reviewer:
Article Reviewed By
Md Forhad Hossain
(BA-Hons, MBA, LL.B, LL.M)
Meet Md. Forhad Hossain – is an expert in company registration with over 14 years of experience. He has helped more than 400 businesses in Malaysia and over 7,000 clients from around the world start their journey successfully.
Forhad is passionate about making business registration simple and stress-free. His knowledge and dedication have earned him the trust of entrepreneurs worldwide.
If you’re looking for someone to guide you, Md. Forhad Hossain is the name you can Rely on.
