1 Tips for Foreigners Opening Restaurant in Malaysia
1.1 How to Register a Business in Malaysia
1.2 What license is needed to start a restaurant in Malaysia?
Malaysia is a place where people love eating. Actually, it is same everywhere in the world, but still, what we can infer here is that food business has a lot of potential in Malaysia. And especially for foreigners, this is an opportunity to introduce something unique to the people, the food of their culture. Everybody would want you to put dishes in the menu that they have never tried before and every time someone has done this in Malaysia, it has turned a success. Let us face it, there are thousands of restaurants across the country, and most of them are owned by foreigners. And if you want to do the same, you have the right idea and to help it flourish, here are the tips for foreigners opening restaurant in Malaysia.
Steps to Open a Restaurant in Malaysia
Let us start with how you start your business. The first thing you need to do is register your food company.
How to Register a Business in Malaysia
First, you will need to select a business type. Being a foreigner opening restaurant in Malaysia, the only choice for you to go is with Sdn Bhd (Private limited company). A restaurant business is one of the few businesses for foreigners in Malaysia where 100% ownership is available, so there’s another reason for you to open a restaurant in the country.
READ ALSO: The Importance of Monthly Financial Reviews
The next thing you need to do is get all the licenses required to open a restaurant in Malaysia.
What license is needed to start a restaurant in Malaysia?
All of this depends on what you sell in your restaurant. Anyway, here are some of them.
- Alcohol license: If you are selling liquor.
- Halal Certification: If your restaurant is Halal friendly.
- MACP and PPM: If you want to play music in your restaurant.
- If your company is a 100% foreigner ownership, you will also need to acquire a Wholesale and retail trade license. For this, your business should be unique, and the premise should be at least 1,500sq ft in area.
- Also, if you want to import ingredients, you will need import licenses. You could hire a local lawyer to help you with the licenses.
Visa
It would be convenient if you get a DP10-2 years’ work permit for both you and your family. Anyway, there are many other options available for you, so you could pick one which is good for you.
These were the steps for you to open restaurant in Malaysia, Now, let’s look at some tips for making your food business feasible.
Location
This is the most important thing. Your restaurant should stand in a place where a lot of people could reach to you. Somewhere you could expect hungry stomachs to be and also a place where you could pay the rent.
Menu
The menu should be designed perfectly. I was not going to say this. Well, that is also a key, but you will need to make sure that you provide people with great food, unique options and specialities, which could be your selling price. First, this might not sound a good idea, but it is of utmost importance that you keeps the prices as low as possible.
READ ALSO: Tips For Foreigners Opening A Retail Shop In Malaysia
Design Layout
People want to eat in a great environment. Cleanliness and design both of these things come together when you make your restaurant a place where people would love to be. Painting, comfortable chairs, friendliness, everything should be in balance.
Staff Hiring
Some people are just searching for a job while some people love what they do. Even if generalising could be wrong, go with the latter category, hire those who are dedicated and kind. Also, pay them good, your reputation is on the stakes.
Business Operation
You don’t just open restaurant in Malaysia, now you have a business which expects your dedication. You will need to have the right schedules and profile. Also, you will need to develop entrepreneurial skills such as reading the market, analyzing your competitors and making changes in the necessary time.
Well, this was all for opening restaurant in Malaysia. I hope this article will help you. Besides, you can learn more by reading about an expatriate guide on starting a business in Malaysia and starting a restaurant business in Malaysia.
FAQs
For 100% foreign-owned company, you will need to apply for Wholesale, Retail Trade License to approve your entity. Such license will only be granted to a restaurant of “unique'” concept and with size minimum 1,500 sq ft.
Can a foreigner own a restaurant in Malaysia? ›
For 100% foreign-owned company, you will need to apply for Wholesale, Retail Trade License to approve your entity. Such license will only be granted to a restaurant of “unique'” concept and with size minimum 1,500 sq ft.
How much money do you need to open a restaurant in Malaysia? ›
New investors do not have idea of investment capital when start restaurant business in Malaysia. Let guess minimum budget of RM 20,000 to RM 40,000 may need to establish a restaurant business. Provided that, budget vary upon business location. Location: Location is the most important for starting a restaurant business.
Can I start a business in Malaysia as a foreigner? ›
The most straightforward business entity, a Sole Proprietorship, is exclusively available to foreigners with permanent residency in Malaysia. Subsequently, foreigners can only start a sole proprietorship in Malaysia if they gain permanent residency.
How to open up a restaurant in Malaysia? ›
How to Set Up a Restaurant in Malaysia
- Company Registration. ...
- Wholesale, Retail and Trade (WRT) License. ...
- Business Premises and Signboard License. ...
- Liquor License. ...
- Halal License. ...
- Food Handling Certificate. ...
- Music Authors' Copyright Protection Berhad (MACP) License. ...
- Public Performance Malaysia (PPM) License.
The average pay for a Restaurant Owner is MYR 41,566 a year and MYR 20 an hour in Malaysia. The average salary range for a Restaurant Owner is between MYR 31,590 and MYR 48,383.
What license does a foreigner need in Malaysia? ›
Foreign Driving Licenses Laws in Malaysia
Upon arrival to Malaysia, you are allowed to drive around with an international driver's license for a total period of 90 days. After the 90 days, you will be required to convert your foreign driving license into a Malaysia Driving License.
What business is the most profitable in Malaysia? ›
Tourism Business
The tourism sector contributed to approximately 48 billion Ringgit Malaysia (RM) in 2022, making it the most profitable business in Malaysia. If you want to open a tourism business, you will be required to provide transportation, accommodation, meals, and other services.
How much does it cost to open a small cafe in Malaysia? ›
Now it's time to think about how you are going to fund your F&B business. It can cost up to RM500,000 to start a cafe or restaurant in Malaysia. The bulk of it will come from renovations and equipment purchases.
What is the average profit per month for a restaurant? ›
A good rule of thumb for the average restaurant profit margin is between 2% and 6%. In its first year, the average full-service restaurant in the US can expect to make approximately $112,000 per month in total revenue. This means costs need to be around $106,000 per month to make a decent profit.
Planning and Preparation
Before diving into the business world in Malaysia, consider the following steps: Define Your Business Idea and Plan: Identify your target market, understand the problem you're solving, and conduct a SWOT analysis (strengths, weaknesses, opportunities, threats).
Can a foreigner own a franchise in Malaysia? ›
a) Foreign Franchisor
According to the Franchise Act, all foreign franchisors have to gain an approval from the Registrar of Franchises' before they operate their franchise in Malaysia or if a Malaysian will operate the franchise.
Can a foreigner buy a property in Malaysia? ›
What kind of properties can foreigners own? Foreign ownership of property is liberal (foreigners can own 100% of the property) in Malaysia as long as minimum requirements are met. In law, foreigners can own any type of properties EXCEPT the following: Properties valued less than RM1 million in most of the major states.
How profitable is owning a restaurant? ›
The average profit margin for a restaurant is around 3-5% and 2-6% for fast food or casual restaurants. However, this can vary widely depending on the type of restaurant, location, and other factors.
How to start a food stall in Malaysia? ›
In order to ensure if your hawker stall business is compliant, do check with your local municipal office (Majlis Perbandaran) and state law. Other permits you may want to look into include stalls and hawkers license, petty traders license, business premise licenses, signboard licenses, etc.
How much does it cost to open mcdonalds in Malaysia? ›
Franchise Businesses in Malaysia
| Business | Capital Required | Franchise Fee |
|---|
| McDonald's | RM1,500,000 – RM3,500,000 | USD45,000 |
| Nelson's | RM15,000 – RM60,000 | RM5,000 – RM12,000 |
| OLDTOWN White Coffee | From RM700,000 – RM1,000,000 | RM80,000 |
| Sakae Sushi | USD500,000 – USD700,000 (depending on markets) | USD100,000 |
11 more rowsIn principle, foreigners can own any type of property (residential unit – both landed and highrise, commercial property and land, industrial property and land). The NLC also states a similar provision for foreign companies in acquiring property or land in this country.
Can you own property in Malaysia as a foreigner? ›
Can Foreigners Buy Property in Malaysia? Yes, foreigners can own condos, houses, and practically any other type in Malaysia on a freehold basis. It's one of Asia's easiest countries to own land. Malaysia's only restrictions on foreign property ownership are heritage buildings, agricultural land, and low-cost housing.
How much does it cost to start a business in Malaysia? ›
In total, it's advisable to prepare around RM 100,000 as a fund to start a business in Malaysia. This amount should give entrepreneurs a clear idea of the loan amount they might need to secure to cover these initial costs.
