Business Administration in Malaysia

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

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
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.

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Working Conditions

Legal Weekly Duration
48 hours a week.
Retirement Age
There is no legal age for retirement in the private sector even if the EPF (Employment Provident Fund) considers people are eligible from 55 for men and 50 for women.
Working Contracts
Called "Contract of Service" or "Contract of Employment", the contract is deemed to exist as soon as the employee starts to work. There are fixed-term contracts and open-ended contracts.

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Cost of Labor

Minimum Wage
No legally mandated national minimum wage
Average Wage
USD 5,751 per year (women)
USD 15,861 per year (men)
Social contributions
Social Security Contributions Paid By Employers: 1.5 %.
Social Security Contributions Paid By Employees: 0.5 %.

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Social Partners

Social Dialogue and Involvement of Social Partners
There are two national organizations: the Malaysian Trade Union Corporation (MTUC) and the Congress of Unions of Employees in the Public and Civil Service (CUEPACS).
Unions
National Union of Journalists Malaysia
Unionization Rate
9.5% of workers are unionized.
Labor Regulation Bodies
Ministry of Human Resources

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