Foreigners are not permitted to own a public limited company in Malaysia. They are also not allowed to start either a limited liability partnership or a sole proprietorship. Only Malaysian citizens may own any of the preceding types of companies. Foreigners are only allowed to incorporate a Sdn Bhd or a private limited company in the country according to the regulations imposed by the Companies Commission of Malaysia (SSM). The reason for this rule is that private limited companies provide foreign business owners with complete foreign ownership. They are only to open companies in specific sectors which are the following: petroleum, oil, and natural gas; education; outbound tourism and ticketing agencies; banking and finance companies; and agriculture. However, the list is subject to change depending on the type of foreign investment which the government of Malaysia intends to attract. Foreigners are encouraged to open unique businesses which are rare in Malaysia. However, before doing so, foreigners have to obtain the necessary licenses and trade permits to open such a company in Malaysia.
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