Setting up a Business in Malaysia

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Private Berhad is a Private Limited Company.
 
 
No minimum capital.
Maximum 2 to 50 shareholders.
 
 
Liability is limited to the nominal value of the subscribed shares.
Company name and statutes registration: MYR 130; Registration to the Commission of Enterprises in Malaysia: MYR 3,000; Obtaining certificates: MYR 350.
Public Berhad is a Public Limited Company.
 
 
MYR 2 million
Minimum 2.
 
 
Liability is limited to the nominal value of subscribed shares.
Company name and statutes registration: MYR 130; Registration to the Commission of Enterprises in Malaysia: MYR 3,000; Obtaining certificates: MYR 350.
General Partnership
 
 
No minimum
Maximum 2 to 50 partners.
 
 
Partners' liability is joint and several.
Company name and statutes registration: MYR 130; Registration to the Commission of Enterprises in Malaysia: MYR 3,000; Obtaining certificates: MYR 350.
 
 

Business Setup Procedures

Administrative Formalities
Companies which wish to do business in Malaysia must register with the Companies Division of the SSM in accordance with the 1956 Law on company registration. To form a company, the SSM must check if the planned name of the future company is available. Foreign companies must form a local company or register a branch in Malaysia to be able to do business. Although it is encouraged by the government, recourse to a license purely and simply is uncommon in Malaysia. For further details on the formalities for forming a company, visit the Guide of the SSM.
The Competent Organization
The Companies Commission of Malaysia (SSM) has the power, as the representative of the Ministry of Domestic Trade and Consumer Affairs, to register, form and strike off Malaysian companies and enterprises. Its main functions are administration and implementation of the applicable laws, registering of companies and enterprises, keeping official company and enterprise dossiers, and making company directors aware of ethical rules. The SSM is also a watchdog organization.
Time Necessary for Registration
You should count about 13 days to set up a business in Malaysia.
 

Recovery Procedures

Principle
For the formalities of company restructuring and recovery, visit The Asia Pacific restructuring and insolvency guide 2006.
Minimum Debt-to-Capital Ratio Triggering Liquidation
None
Bankruptcy Laws
Bankruptcy Act of 1967
Reorganization and Rehabilitation Laws
Bankruptcy Act of 1967 and the Companies Act of 1965.

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