A consulting company in Malaysia is registered with the purpose of providing consultancy services to various entities. Typically, consulting companies usually offer their services to other businesses which need guidance when entering a new market or which seek for ways to improve their performance.
Considering that not all businessmen have the necessary expertise in order to expand their operations, they prefer to address to a consulting company which hires professionals in a wide range of fields (accountants, tax specialists, management advisors, specialists in specific business activities) who can create a more reliable business model.
Investors who have gained experience in the fields of financial management, marketing planning, production, human resources or business planning may use their abilities and start a consulting company; our team of specialists in company registration in Malaysia can assist with advice on all the legal requirements necessary for this type of activity.
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Why start a management consultancy company in Malaysia?
Malaysia is an attractive business destination, situated in the center of the ASEAN countries; since it has a competitive economy and investors can access through it the entire ASEAN consumer market, of more than 600 million persons, Malaysia gains more and more popularity amongst foreign investors seeking to expand a company and this is why a management consulting company can be an attractive business idea, as they may need professional advice.
How can one open a Malaysian management consultancy company?
Just like any other company offering products or services on the Malaysian market, the management consulting company is required to register with the Companies Commission of Malaysia. A company providing management consultancy services is classified under the Malaysian Standard Industrial Classification, Code 7414, which provides the legal understanding of the types of services that can be offered by this type of company. The following are applicable:
- it can offer services related to the improvement of the client company’s public image;
- it can become involved in creating a business strategy for its clients and can organize the company’s structure;
- it can provide management services by addressing to specialists in the field in which the company operates;
- it can tackle the issues arising from employment matters and it can provide consulting services to government entities;
- if the company wants to provide consulting services to government entities, it has to be registered with the Ministry of Finance.
However, if the company is interested in registering with the Ministry of Finance, minimum requirements have to be achieved. For example, the company needs a paid-up capital of RM 50,000, regardless of the legal entity under which it operates, and must also have a business address. At the same time, the company must have at least three permanent employees, who need to respect specific criteria, which can be detailed by our team of specialists in company registration in Malaysia.
Are there any employment regulations for consulting companies in Malaysia?
Yes, there are. For example, the management consulting company can hire foreign employees. If the company will hire foreign employees, it needs to submit an application for the respective employees with the Immigration Department, an institution which will grant Employment Passes. In the case of those opening a company in Malaysia as a consulting firm that will enter government tenders, there are special regulations concerning the company’s employees.
Thus, besides having three employees hired on a permanent employment contract, the employees have to be registered with the Employees Provident Fund and they need to have qualifications in their respective fields; the company will need in this case two employees with academic qualifications and a clerk.
It is also necessary to know that the company’s director can’t be hired as an employee of the company, but he or she can be part of the management staff. Furthermore, the company’s founders must have an experience in their respective field of minimum five years.
The company can be registered as a private limited company or as a Labuan international company, if the investors prefer this region of Malaysia as their business destination. Our team of specialists in company registration in Malaysia can provide more information on other necessary procedures that are available during the incorporation of a consulting business. Investors can request legal guidance regarding the tax system available for this type of business or on the accounting principles it must follow.