Malaysia Hotline: +603-2141
8908
The business could conducted in Malaysia as:
1. an individual operating as sole proprietor, mostly provide to the local people
2. two or more (not more than 20) persons in partnership, or
3. a locally incorporated company or a foreign company registered
under the provisions of the new CA 2016
All sole proprietorship and partnerships in Malaysia must be registered
with the Companies Commission of Malaysia (SSM/CCM) under the Registration of
Businesses Act 1956. In the case of partnerships, partners are both jointly and
severally liable for the debts and obligations of the partnership should its
assets be insufficient. Formal partnership deeds may be drawn up governing the
rights and obligations of each partner but this is not obligatory.
Company Structure :
The CA 1965 governs all companies in Malaysia. The Act stipulates that a company
must be registered with the SSM in order to engage in any business activity.
There are three (3) types of companies that can be incorporated under the
CA 1965:
1. A company limited by shares is a company formed on the principle that
the members’ liability is limited by the memorandum of association to the
amount, if any, unpaid on the shares taken up by them.
2. In a company limited by guarantee the liability of the members is
limited by the Memorandum and Articles of Association to the amount which the
members have undertaken to contribute to the assets of the company in the event
the company is wound up.
3. An unlimited company is a company formed on the principle of having no
limit placed on the liability of its members
Company Limited by Shares :
The most common company structure in Malaysia is a company limited by
shares. Such limited companies may be incorporated either as a Private Limited
Company (identified through the words “Sendirian Berhad” or “Sdn Bhd” as part
of the company’s name) or a Public Limited Company (identified through the
words “Berhad” or “Bhd” as part of the company’s name).
A company having a share capital may be incorporated as a private company
if its Memorandum and Articles of Association:
- Restricts the right to transfer its shares
- Limits the number of its members to 50, excluding employees in the
employment of the company or its subsidiary and some former employees of the
company or its subsidiary.
- Prohibits any invitation to the public to subscribe for its shares and
debentures
- Prohibits any invitation to the public to deposit money with the company
for fixed periods of payable at call, whether interest-bearing or
interest-free.
A public company can be formed or, alternatively, a private company can
be converted into a public company subject to Section 26 of the Companies Act
1965. Such a company can offer shares to the public provided:
a) It has registered a prospectus with the Securities Commission
b) It has lodged a copy of the prospectus with the SSM on or before the
date of its issue.
c) A public company can apply to have its shares quoted on the Bursa
Malaysia subject to compliance with the requirements laid down by the exchange.
Any subsequent issue of securities (e.g. issue by way of rights or bonus, or
issue arising from an acquisition, etc.) requires the approval of the
Securities Commission.
Tannet Malaysia is an International Consultant Firm based in Hong Kong, Shenzhen. We provide one stop business services and offshore company incorporation is only one of the services. We offer Samoa, Cayman, Belize, BVI, Dubai, England, Labuan offshore company incorporation and etc. At the same time, we offer secretarial services, account and audit, tax planning as well. Kindly contact us for more information details if you interested on other services.
Contact us :
If you have further
queries, please contact Tannet
24 hours Malaysia
hotline: +603-21418908;
24 hours Hong Kong
hotline: 852-27837818;
24 hours China
hotline: 86-755- 36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my