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Open a Public Limited Liability Company in Malaysia

Open a Public Limited Liability Company in Malaysia

In Malaysia, the public limited company (Berhad) is suitable for big companies and addresses foreign investors who want to open a business in this country and also sell company shares to the general public. Thus, this alternative is suitable for those interested in a joint stock company, a business structure that does not exist in Malaysia. We invite you to discover information about how to set up a public limited liability company in Malaysia, and also about the services offered by our local agents.

Formalities for opening a public limited liability company in Malaysia in 2024

If you want to set up a business in Malaysia and you are interested in public limited liability, then it is important to know what are the procedures for setting up this structure and what exactly you have to take into account. Below we present some information in this regard:

  • The trading name of the public limited liability company must include the word “Berhad”. A name verification is mandatory prior to company formation in Malaysia.
  • You must have a registered business address in Malaysia.
  • At least 7 shareholders are required to form this business in Malaysia. A public limited liability company in Malaysia can have more than 50 shareholders.
  • The Articles of Incorporation must detail the activities of the public LLC in Malaysia, general business rules, cases in which such structure can be closed, voting rights, and more.
  • You must have at least one company secretary, licensed by SSM or Companies Commission in Malaysia.
  • It is necessary to open a bank account in Malaysia, allocated to the respective company.
  • The minimum share capital for a public limited liability company in Malaysia is RM 2 million.
  • You must also apply for a special business license and permits, according to the activities you want to carry out in Malaysia.

Once all the documents are accepted and the formalities are completed, SSM can issue the Certificate of Incorporation. So, if you want more information about how to start a business in Malaysia and what the conditions are for establishing a public LLC, do not hesitate to contact our team of local agents.

In case you want to start a business in another Asian country, for example in the Philippines, you may contact our partners – CompanyFormationPhilippines.com.

On the other hand, we recommend the services of our accountants in Malaysia, if you decide on this structure. It is very important to align yourself with accounting requirements in Malaysia, and our CPA in Malaysia can provide you with the support you need.

Are there any post-registration steps for a public LLC in Malaysia?

Of course, right after opening a public limited liability company in Malaysia, you must select an auditor, at least 30 days before the submission of the financial accounts.
If you have not opened a bank account or if you have not applied for the necessary business license, you can do this even after registering a public limited liability company. The only thing that remains is to register the company for the payment of taxes so that you can take care of employee relocation or recruitment, as the case may be.

We have collected some data about the economic situation in Malaysia, which will help you when you want to set up a company in Malaysia:

  • The growth of the economy in Malaysia in 2022 was beyond expectations. There was an increase of approximately 8.7%, compared to the estimate of 6.5%.
  • Q4 of 2022 was the one that supported to the greatest extent the GDP growth recorded in Malaysia in 2022.
  • At the end of 2022, respectively in Q4, there was an unemployment rate of 3.6%, lower than the one in Q3.
  • Around RM 19.3 billion was the total net FDI in Malaysia in Q4 of 2022.

LLCs established in Malaysia are allowed to raise money by issuing bonds or offering share certificates to the investors. Furthermore, an LLC can apply for bank loans and benefit from lower interest rates compared to other types of businesses in Malaysia.

Do you want to find out information about how to open a public limited liability company in Malaysia? Our local specialists can provide you with complete information regarding company incorporation in Malaysia, so do not hesitate to contact us.