Guide to Start Market Research Company in Malaysia
Market research services is classified under code 86401 in the Malaysia Central Product Classification that includes the following three (3) major activities as follows:
1. investigation services designed to secure information on the prospects and
performance of an organisation’s products in the market.
2. market analysis (size and other characteristics of a market) and analysis of consumer’s attitudes and preferences utilising personal interviews, telephone and mail surveys, historical data, etc.
3. economic and social intelligence research
Guide to Start Market Research Company in Malaysia – Equity and Licenses
The market research services can be started with registration of a Malaysia Sdn Bhd company or a foreign company registers a branch in Malaysia governed by Companies Commissions of Malaysia (CCM) with the following foreign equity restrictions as follows:
1. Under the General Agreement on Trade in Services (GATS) allows foreign professionals to provide market research service in Malaysia can be made only through a locally incorporated joint-venture corporation with Malaysian individuals or Malaysian controlled corporations or both, and Bumiputera (Malaysian indigenous) shareholding must be at least 30%.
2. Under the Asean Framework Agreement on Services (AFAS) permit foreign professionals within ASEAN to provide market research services in Malaysia with foreign investment in market research services can be made only through a locally incorporated joint-venture Corporation with Malaysian individuals or Malaysian controlled corporations or both, with foreign equity up to 51%.
The local entities eligible to register to start your legal services in Malaysia is either by setting up a Malaysia Sdn Bhd company or Branch office under the Company Commission of Malaysia (CCM). The company also required to obtain various business licenses including premise and signboard licences from the respective local authorities to operate the business.
Expatriate Work Permit for Market Research Company in Malaysia
Malaysia Sdn Bhd companies providing market research services in Malaysia may employ expatriate for two (2) years’ renewable work permit with a minimum salary RM5,000 from Expatriate Committee of the Malaysia Immigration Department with minimum paid up capital of RM350,000 depends of the shareholding portion hold by the local Malaysian partner. Key posts will be considered if the foreign paid-up capital is at least RM500,000. However, this sum is only a guideline and the number of key posts considered based on the company’s needs, on a case-by-case basis.
The spouse and children of the expatriate can apply for 2 years’ renewable dependent passes once the expatriate has been issued with the Expatriate Pass.
Easy start your Market Research Business with Labuan Offshore Company
Under General Agreement on Trade in Services, (GATS), there is no limitation under cross border activities and transactions abroad for market research services with 100% foreign ownership. Such investment can be made only through a Labuan Company incorporated in Labuan. Labuan Company perform market research services enjoy low corporate tax rate 3 % or pay flat fee of RM20,0000 disregards amount of profit.
Market Research companies in Labuan with paid up capital of RM250,000 may employ expatriates for 2 years’ renewable work permit approval with minimum salary of RM10,000 from the Expatriate Committee of the Labuan Immigration Department. The spouse and children of the expatriate can apply for 2 years’ renewable dependent passes once the expatriate has been issued with the work permit pass.
Feel free to contact us to assist you to quick set up your market research company in Malaysia. We simply “simplify the complexities” of your investment in Malaysia!