Iskandar as a regional HQ for a software co?

Hi red tape is minimal in Malaysia if you have the cash and far easier to do business in that sense. The first piece of advice I got from another aus with a software "factory" in Cyberjaya was that 90% of business costs are under the table. Staff are cheap and can be overworked etc as excess supply. Don't believe the hype about iskander though. It is "heads in trough" make money for the elite and will be the usual failure like cyberjaya/putrajaya as so much money will disappear into the wrong hands as usual. Iskander is nearer to Singapore though which can be an advantage but source of good grads to do the work is in KL/cyberjaya and other companies their. There are a lot of app developers around as well.

Hi eKiwi,

I have moved from Australia this year and have set up an ICT company in KL so might be able to give you a few pointers.

Firstly to set up a foreign company which will allow you and your family to get visas the minimum investment is RM500,000 paid up capital as cash. This could be potentially lowered if you want local partners etc.

The next step is registering a business. For this you will need two directors with local addresses. This can be yourself and your wife provided you have already leased an apartment locally or a have friends address you could use. You will also need a Malaysian company secretary which cost around RM150 per month and just rubber stamp documents and ensure you comply with tax regulations etc. PM me if you want details of the company I used to set up my business and company secretary.

Once you have a a company set up you will need to pay up your capital to your business. My recommendation if you can would be set up a premium banking account in Australia with Citibank (citigold) or HSBC (HSBC Premier). Doing this will allow you to transfer fee free to Malaysia and will also streamline the process of opening a business account as you have an established relationship. Maybank and Public Bank didn't want to open an account for my business so I am glad this is something I had access to.

Since your business is in the ICT sector you should register with Multimedia Development Corporation (MDeC). The registration will involve an interview and an inspection of your offices. MDeC seem very efficient and are very helpful if you have any questions. The main reason for registering with MDeC is that it will streamline the Visa application process. 

Once you are registered with MDeC you can submit you Visa application online. Provided you tick all the boxes (Uni Degree, experience etc) you should get approval within 5 working days. I paid a Visa agent to do this for me which I now regret after seeing how simple the MDeC system was. If you don't register with MDeC the route is more complicated as the application will go first to immigration department and will be vetted by the expatriate committee.

In terms of incentives for new ICT companies you should really investigate obtaining MSC status for your business. I have not yet got around to applying (as I understand it is quite difficult) but it will allow up 10 years tax free for your business. On top of this it will allow you to more easily employ foreign workers.

You should also be aware to my understanding that foreign income is tax free in Malaysia. So if you elect to keep some operations in Australia you will not be taxed on any of the personal income it might generate. Just make sure you have a few "board" meetings back in Australia.

I can't give you much pointers on Iskander as I have never been there! However I really do like KL and don't miss how expensive Australia can be! 

I'm sure I've missed a few things just PM if you want anymore details on anything.

GBK06

Thanks guys, esp gbk06 for your very informative reply!
Currently travelling but if you don't mind I might PM you with a few questions?
Thanks again for taking the time to respond, and Happy New Year!