Well, it seems like you have made up your mind to expand your company overseas! Have you ever thought about expanding your business to Malaysia? In terms of ease of doing business, Malaysia is ranked 12th compared to 190 other countries in the world, so it is without a doubt a favourite and popular spot for foreign business owners to start or expand their own businesses here.
Misconception Business In Malaysia
There is one common misconception amongst some foreign entrepreneurs which is pork and pork products are completely banned in Malaysia just because we are a Muslim country. While Malaysia’s official religion is Islam, other religions are also practised in peace and harmony. Malaysia is a multi–ethnic, multicultural, and multilingual society, and the many ethnic groups in Malaysia maintain separate cultural identities. With that said, pork and pork products are widely consumed and sold in Malaysia, and like all other products, they are subject to certain regulations such as Import Permits, Veterinary Health Certification and food and safety inspection.
A recent example of a foreign business that made its way to Malaysia with a bang was Don Don Donki, a famous discount shop chain store from Japan. They finally opened their first store in Malaysia in March of 2021. The queues have been crazy ever since the first day and they have opened yet another outlet within the same year. It is without a doubt Don Don Donki has been a hit and they are already planning to open 11 new outlets in Malaysia by 2024.
Expanding a business overseas is always something to be excited about. but did you know that if you want to start a business in Malaysia, but you are not living in Malaysia, you will need a nominee director? According to the Companies Act 2016, every business is required to appoint a local director who lives in Malaysia, so if you live overseas and you do not have a local business partner, then perhaps you will need to appoint a local person to be your nominee director in Malaysia.
That One Person Your Business Needs…
Even though it is encouraged to have a nominee director to start a foreign business in Malaysia, don’t be intimidated by this concept as a nominee director is only appointed to fulfil the statutory compliance requirements. A nominee director’s authority is limited as he is powerless to have any say in the daily business or financial operations of a business. A nominee director is also unable to sign any invoice, contract or legal documents on behalf of the actual owner of a business.
Even with that said, a business should not simply look for a random person in Malaysia and appoint him or her as a nominee director as there are certain risks involved. We therefore encourage you to sign an agreement with your nominee director to protect each other’s interests and rights. Under the law, all directors are legally responsible and accountable for legal compliance, including the nominee director.
Your business needs this person to expand overseas
Starting a business is always easy in Malaysia, so if you have a friend here you can appoint him as your nominee director. But if you don’t, why not look for us? Once you’ve passed our internal checks, we have three qualified individuals who are available to be appointed as nominee directors. If you’re still confused about the legal matters or want to learn more about our nominee director candidates? Why not consult us at MISHU to get more details?