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A Bountiful Business – Set Up an Agricultural Business in Malaysia
Ready to reap what you sow? 3E Accounting shows you how to set up an agricultural business in Malaysia successfully.
The agricultural industry in Malaysia is poised to grow exponentially. The government is seeking to reduce its fifty billion Ringgit Malaysia food import bill by investing sustainably in this sector. Youths and ‘agropreneurs’ (who merge technology into farming) are being aggressively enticed by loans, grants and other government incentives. Now is a great time to set up an agricultural business in Malaysia.
Right for Cultivation
The Ministry of Agriculture and Agro-Based Industry (MOA) governs agriculture in Malaysia. This sector encompasses commodities such as rice, vegetables, fruits, livestock, fisheries, etc.
Entrepreneurs need to incorporate a company to set up an agricultural business in Malaysia. This can be done by logging on to the Company Commission of Malaysia (CCM) or Suruhanjaya Syarikat Malaysia (SSM) website. The legal structure of your business can include:
- Sole Proprietorship or Cooperative
- Partnership or Limited Liability Partnership (LLP)
- Private or Public Limited Company (Sdn. Bhd. Or Berhad)
For an agricultural business, the most appropriate legal structure is Sdn. Bhd. This type of company has separate legal entity status that limits liability. While companies can have 100% foreign capital investment, all companies must have at least one Malaysian resident director.
The company’s business address and corporate bank account must also be registered in Malaysia. Registration is also needed with the Malaysian International Chamber of Commerce and Industry (MICCI) as well as the Inland Revenue Board of Malaysia (LHDN).
Under Malaysia’s Federal Constitution, all land acquisition jurisdiction is governed by the various state governments. Guidelines are provided by the Economic Planning Unit (EPU) of the Prime Minister’s Department.
Specific industries and boards regulate the trading of all agricultural products in Malaysia. The type of licences and governing authorities that provide them depends on the type of business activity. For example:
- Pineapple – license from the Malaysian Pineapple Industry Board (MPIB)
- Papaya & Star Fruit – license from the Federal Agricultural Marketing Authority (FAMA)
- Cocoa – license from the Malaysian Cocoa Board (KOKO)
- Palm Oil – license from the Malaysian Palm Oil Board (MPOB)
- Export certificates, permits and approvals from the Department of Agriculture, the Malaysian Quarantines and Inspection Service, etc.
It’s always best to engage experts such as 3E Accounting to handle the variety of authorizations that may be needed. This will minimize errors and delays while allowing you to focus on your business instead.
Agriculture is one of the limited sectors that permits the hiring of foreign workers. For more information, check out the Ministry of Home Affairs website (MOHA). All farmers are also encouraged to join the Farmers’ Organization Authority, a statutory body under the supervision of the Department of Agriculture (DOA). The government also provides fiscal and non-fiscal incentives for agriculture including;
- Income and sales tax exemptions
- Farming allowances
- Reinvestment allowance
A Rosy Future in Farming
Malaysia’s agricultural industry has undergone a tremendous change from family-run farms to international concerns that have a strong global presence. 3E Accounting can help you get started in this industry by taking care of all your essential business needs. You can safely leave everything from incorporation to licensing in 3E Accounting’s professional care. Plough into the future and set up an agricultural business in Malaysia.
Contact 3E Accounting today to speak to industry professionals about the future of your business.