Malaysia resident director in 2023
Every Malaysian company requires at least one individual director resident in Malaysia. When our Clients are unable to comply with this requirement, Healy Consultants provides professional passive nominee resident director.
Who requires a resident director?
- The Malaysian Companies Act Section 122, Division 2, states that every Malaysian incorporated company must appoint at least one director that is resident in Malaysia before the company can be established;
- Most of our Clients require Healy Consultants to provide one professional passive nominee resident director for their Malaysian company. Our annual fee for the same amounts to US$4,200 per nominee (click link);
Who is considered a resident in Malaysia?
- A “Malaysian resident” is defined as a person who resides in Malaysia for at least 182 days in a calendar year, according to the Income Tax Act 1967. This includes i) foreigners holding a valid Malaysian work permit or ii) permanent residents;
What is a Bumiputera Company
- A Bumiputera (known as ‘son of the land’) company is unique to Malaysia and was established by the government to incentivize Malaysian entrepreneurship and the return of ethnic Malays from abroad;
- This type of company is eligible for special grants, discounts, and incentives such as cheaper business licenses, special bank agreements, native reservation of land, and discount when purchasing land or renting property;
- The Bumiputera incorporation is similar to a Malaysian LLC (known as a Sendirian Berhad). To qualify as a Malaysian company, the Bumiputera structure i) must be at least 30% locally owned ii) at least 51% of the board of directors are resident Malaysians and iii) 51% of the workforce must be ethnic Malays;
- If required, Healy Consultants will be pleased to provide our Client a full package of nominees to comply with the above requirements;
Resident director service fees
- Healy Consultants can assist and provide professional nominee shareholder and director services for those Client’s having difficulties to secure a trustworthy resident director (click link). Our annual fee is US$4,200 per nominee appointed.
- Our nominees are not involved in daily business activities nor be appointed as bank signatory for the corporate bank account of the company. We rarely sign documents on behalf of our Client;
- Prior to each appointment, Healy Consultants will supply our Clients with i) the due diligence information about each nominee and ii) a nominee service agreement.
- If our Client is uncomfortable using Healy Consultants nominee services on a permanent basis we recommend the following:
- After incorporation of the Malaysian company is completed, Healy Consultants assists our Client to secure employment permits for your preferred employees, enabling them to be appointed as resident directors; OR
- Healy Consultants can assist our Client in recruiting local Malaysian staff. Therefore, appointing them as resident directors and shareholders. We have valuable experience in this area and are skilled at securing quality candidates for our Clients.
- Healy Consultants does not normally allow Clients to pay Malaysia resident director fees by instalments. We normally require full payment up front for the year. However, we may consider half-yearly payments for companies in good standing.