Benefits of having a local residence director in SDN BHD The Companies Commission of Malaysia or the SSM has strict rules when it comes to company registration in the country. Business owners must ensure their entity meets all of these requirements first before applying for incorporation. Appointing a local residence director in Malaysia is one of these crucial requirements. Keep reading to know how many directors your company needs. This blog also assesses why these local directors are an asset to your business. Local resident directors: How many do you need to appoint? The rules are pretty clear about the number of such directors you must appoint based on the nature of your operations. Let’s take a look ● ●
For private companies - If your company is looking for the SDN BHD suffix (given to private companies), you must appoint at least one resident director before registration. For public companies - Public company owners (BHD) have to appoint at least two directors locally in Malaysia.
Benefits of hiring a local director for your company Besides helping your business meet the basic criteria and complete company registration in Malaysia for foreigners, local directors are indispensable in other regards too. Here are a few advantages of appointing them ●
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Act as a representative for banking activities - Local directors can represent your company and undertake dealings with corporate banks in Malaysia. Without these people in your company, conducting even minor banking activities would become an immense hassle. Help with local communication - Company registration in Malaysia for foreigners is just the first step. Once your firm begins operations in the country, you will need to communicate with Malaysian residents regularly. Some of these consumers may not be fluent in your language. Local directors can help in this regard and act as mediators between the two parties. Efficient and punctual tax filing - As an outsider, you may fail to remember the due dates for taxes. Additionally, it can be difficult to clear such taxes, logistically speaking. You can delegate this task to local residence directors, who can follow up on the time limit and clear these liabilities whenever the time comes.
Keep in mind that not every individual residing in Malaysia is qualified to become a company director. He/she must meet certain eligibility requirements before taking up the job.