Opening a company in Malaysia often requires appointing a resident director in charge of various tasks. In this article, you can discover information about how to appoint a resident director in Malaysia and what are his/her main responsibilities. We mention that our specialists in company formation in Malaysia can guide you regarding business formation and the appointment of a resident manager.
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Who can be appointed as a director in Malaysia?
Setting up a company in Malaysia involves, among other things, the appointment of a resident director. Certain types of companies established in this country must only have managers resident in Malaysia. Here are some of the conditions that must be met to appoint a resident director in Malaysia:
- The director must have residency in Malaysia.
- The manager must be a natural person, at least 18 years old.
- He or she must have a clear criminal record and must not have been involved in fraud or bribery offences in a foreign country.
- The person appointed for the position of resident director in Malaysia must not be bankrupt.
We recommend our nominee director services in Malaysia if you are looking for a credible business partner. Moreover, we can recommend a Labuan resident director if you want to do business in this region.
Some of the most important responsibilities of a resident director in Malaysia
When looking for nominee director services in Malaysia, you must make sure that you make an optimal choice for the business you want to develop. A resident director in Malaysia is in charge of various tasks. Let’s review some of them:
- Fiduciary and statutory duties enter the attention of a resident director in Malaysia.
- A Labuan resident director is directly involved in board meetings and must act in the best interest of the firm.
- A resident director in Malaysia can make various business decisions, also being able to manage the company’s affairs, among others.
- A Labuan resident director must also ensure that he/she has the approval of shareholders in further business transactions.
- Any change at the company level must be submitted to the stockholders, and this can only be done by the resident director in Malaysia.
You can choose our nominee director services in Malaysia when you want to start a business in Malaysia. We can advise you on the duties and responsibilities of a manager in charge.
What offences can a resident director in Malaysia be guilty of?
Being a resident director in Malaysia entails many responsibilities. One of the biggest is to act in the best interest of the firm. On the other hand, such a manager must not report false information to shareholders or make illegal distributions. In general, it is good to know that breaching the company’s policies as a resident director in Malaysia leads to imprisonment or fines for criminal offences.
Some data about Malaysian companies
At the end of 2023, around 1,529,000 local companies were registered. Here are other interesting facts about the business climate in Malaysia:
- There are around 4,996 foreign companies registered in Malaysia, according to the same data.
- There are around 37,460 limited liability partnerships in Malaysia.
In addition to assistance in appointing a resident director in Malaysia, our specialists can also help you in other aspects. For instance, we can provide you with information about our accountants in Malaysia, if you are interested in such services. We invite you to contact us and learn more about company incorporation in Malaysia as well as the requirements to appoint a resident director, among others.