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Company Law in Malaysia

Company Law in Malaysia

The Companies Act in Malaysia 1965 was revised in 2016, this being the most recent version. This set of laws includes information on how to incorporate a business in Malaysia, among other essential things. We invite you to discover more information about this subject in the following lines and also to contact our local agents for company formation in Malaysia.

Types of entities available according to Company Law in Malaysia

Corporate Law in Malaysia presents various categories of entities. Setting up a company in Malaysia largely depends on the intentions of the person who wants to develop his/her business in this country. Here is what kind of company you can establish in Malaysia:

  • Limited liability company – This can be private or public, depending on the business direction. It is the most popular business structure available in Malaysia, which can be established with a maximum share capital of MR 1.
  • Public limited company – Can be established by at least 2 shareholders, and can offer shares to the public, as it can be listed on the stock exchange in Malaysia.
  • Unlimited company – Offers unlimited liability to founders and members who are personally liable for company losses.
  • Partnership – Can be formed by at least 2 members, but no more than 20. Lawyers, auditors, and other professionals normally choose this kind of structure.
  • Sole proprietorship – The owner can operate under his/her name and this is the simplest business form available in Malaysia.
  • Branch – International companies can develop their activities under a branch established in Malaysia. All financial aspects are reported to the parent company.
  • Liaison office – Also known as a representative office, this is a proper choice for foreign investors to promote their businesses in Malaysia, without commercial activities.

How is the company constitution made in Malaysia?

Setting up a business in Malaysia requires the preparation of a set of documents. According to Corporate Law in Malaysia, Memorandum and Articles of Association are the founding documents of a company. They include information about:

  • place of business,
  • name of managers/directors,
  • business rules,
  • duties, powers, and obligations of directors,
  • other responsibilities linked to the business.

These are some aspects related to the company constitution. The Corporate Law in Malaysia details everything related to the formation of a business. We invite you to learn more about company incorporation in Malaysia from our local specialists.

About directors and responsibilities in the firm

The Company Law in Malaysia is the set of laws that provide information on the responsibilities of appointed directors. Therefore, according to Company Law in Malaysia, one must respect the following matters:

  • Appoint at least one director with a residency in Malaysia.
  • Name at least 2 directors for a public company in Malaysia.
  • A copy of the service contract of directors is made available for inspection by the relevant authorities.
  • The salaries and benefits of the director/directors in the company are approved in a general meeting.

Company secretary in Malaysia

The same Company Law in Malaysia presents information on the appointment of the company secretary. Thus, firms must have at least one company secretary in Malaysia, with a residence in this country. Several company secretaries are accepted, depending on the type of business.

Facts about the economy in Malaysia

If you want to open a company in Malaysia, it is good to know some aspects of the economy of this country. Here are some interesting data in this regard:

  • Around 3.7% was the economic growth recorded by Malaysia in 2023.
  • Q4 of 2023 recorded a growth in the services sector of about 4.2%.

In addition to the services for opening a business in Malaysia, our specialists can offer you others. For example, you can opt for the support of our accountants in Malaysia. Do not hesitate to contact us and ask for information about Company Law in Malaysia and the conditions under which a business can be opened in this country.