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Guide to Form A Company in Malaysia

FAQ's all about to Form a Company

Requirements of Company Incorporation in Malaysia

Malaysia has a relatively open and state oriented economy. With a GDP of $24,520.784 per capita, Malaysia has been ranked as the third largest economy in South East Asia and the 29th largest economy in the world by the purchasing power parity principle in 2014. Since its independence in 1957, to modern times; Malaysia has shown an impressive economic growth rate of up to 6.5% per annum and remains unaffected by the global economic recession.

If you are thinking of incorporating a company in Malaysia, then think no more because this is your chance. Making this step can be extremely beneficial for your actual profit and it can bring you face-to-face to a country where business is done in high style. Even more, the entire process will be easier than it may appear to at first and that is because Malaysia has tried to eliminate bureaucracy as much as possible, just enough to become even more business-friendly.

The Things to Know about Company Incorporation in Malaysia

Based on the type of venture, the paid up capital and the work permit application, there are three major types of companies which foreigners can set up in Malaysia:

1. 100% Foreign Owned Company
2. Joint Venture with Malaysian partner
3. Private Company Limited by Shares

What are the requirements to incorporate a 100% Foreign Owned Company?

Such companies are entirely owned and controlled by foreign directors. The business concept should be unique, beneficial to Malaysia’s economy and employment and has to be approved under the 100% foreign owned structure principle. The minimum paid up capital requirement is RM500000 for advisory and consultancy businesses and RM1 million for import, export, restaurant and trading businesses.

What are the requirements to incorporate a Joint Venture with a Malaysian partner?

For such companies, a minimum of 50% control over the venture is maintained by the foreign directors. The other half is owned by Malaysian investors and trading partners. A minimum authorized capital of RM500000 and paid up capital of RM350000 is required.

What are the requirements to incorporate a Private Company Limited by shares?

Foreigners are only allowed to establish a private company limited by shares. No sole proprietorship or any guarantee limited is allowed. Under the Company Act 1965, such a company shall have a minimum of 2 directors and 2 shareholders and the capital structure will be upon the directors’ decision of setting up a fully owned or a jointly owned entity. The suffix “Sendirian Berhad” (Sdn Bhd), which translates to “limited liability” in Malay, shall be added to the name of such companies.

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— Nayagam Zora

Another Successful Company setup with Employment pass.

Happy Client, Zora, HELIOCENTRIC 

Zora started her career in media production …