Open a Trading Company in Malaysia
Updated on Monday 04th October 2021
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Trading companies are among the most successful businesses in Malaysia. If you want to enter this market with your business developed in your home country, we invite you to talk to our team of company formation agents in Malaysia. We are at your disposal with specialized support in terms of registration and formalities.
How can I open a trading company in Malaysia?
First of all, it is necessary to choose an optimal structure in order to be able to set up a company in Malaysia. The most popular entity is the limited liability company, either private or public, depending on the objectives. Find below some details on how to open such an entity in Malaysia, remembering that you can rely on our local agents:
- A minimum of 2 shareholders is required to register an LLC in Malaysia.
- According to the legislation supervising commercial activities in Malaysia, a company secretary residing in this country is required.
- In order to register an LLC in Malaysia, investors must choose at least two directors. They must declare that they have a clear criminal record and that they have not been involved in financial crimes.
- The Articles of Association represent the main documents of the company, with complete information about the activities, the place of business, shareholders, voting rights, the cases in which the company can be liquidated.
- RM 1 is the minimum share capital to open this business structure in Malaysia. A local bank account is required when making the deposit.
- Registration for payment of fees is mandatory.
These are some of the formalities that you should consider when setting up a trading company in Malaysia. For more information and specialist help do not hesitate to talk to our team of company formation agents in Malaysia. Tailored services are available.
What is the registration fee of a trading company in Malaysia?
RM 1,000 is the fee required to open a trading company in Malaysia. In addition to this fee, you must also consider the costs for staff, registration of the name of the company, plus those related to the necessary licenses. We remind you that all these aspects can be discussed with our team of specialists in the field.
Licenses for a trading company in Malaysia
Import and export companies can operate in Malaysia as soon as the necessary license is obtained. Wholesale Retail Trade or WRT is the type of license that a trading company in Malaysia must obtain before starting activities in this field. Malaysian Ministry of Domestic Trade and Consumer Affairs is the institution that approves license applications for companies wishing to trade in Malaysia. Here's how to apply for this type of license:
- RM 1 million is the fee to obtain this license.
- Investors must submit a tenancy agreement as part of the application process for this type of license.
- If the trading company is newly established, shareholders must provide a copy of the business plan.
- This type of license is valid for 2 years and can be obtained in a maximum of 4 months.
We remind you that our specialists can handle all the formalities related to obtaining a WRT license in order to open a trading company in Malaysia. Do not hesitate to discuss with us all these aspects, in order to start the necessary processes.
Why invest in Malaysia
With a robust economy and a government that supports foreign investment, Malaysia is a stable and valued business destination. Sectors such as trading, real estate, agriculture, and tourism are among the most representative in the country, with a generous contribution to annual GDP. An experienced workforce, advantageous taxation system compared to other Asian countries and simplified business registration formalities are other strengths that Malaysia offers to foreign investors.
We present below some statistical data about import and export in Malaysia:
- About USD 239 billion was the total value of exports to Malaysia in 2019.
- About USD 205 billion was the total value of imports into Malaysia in the same year.
- Malaysia exports products to over 200 countries around the world and works with more than 200 countries on imports.
- China is Malaysia's largest export partner, accounting for more than 14% of the country's total exports.
So, if you want to open a trading company in Malaysia, do not hesitate to talk to our team of company incorporation agents. Contact us immediately.