Malaysia met a fast-forward development in the past decades and the government offered a multitude of incentives to sustain the business climate that led to a reliable and appreciated economy in South-Eastern Asia, with links and solid relations to all countries worldwide. Financiers from abroad are attracted by Malaysia because it represents an important player that offers a generous market and a huge number of commercial opportunities in the main industries. Opening a company in Malaysia is not only a simple process, but also the starting point for future business openings and enhancements.
Types of companies in Malaysia
The Company Commission in Malaysia is the authority in charge of company registration, whether with local or foreign capital, under certain terms and conditions. In Malaysia, an investor can set up private or public limited companies, sole proprietorships or partnerships, the latter one being created with at least two associates who will benefit from an unlimited liability in the firm. As for the sole traders in Malaysia, this is a simple and efficient structure as the owner can use his or her name for future operations in the country without any restrictions imposed. Please bear in mind that a sole trader in Malaysia can perform activities if he or she owns a residence permit, therefore a legal way to live and work in this country.
Another form of business in Malaysia which can be easily set up, if all the requirements are met is the limited liability company – the private or the public one. If the stocks of a company are listed to the public, it means you have decided for a public limited company (Berhad), an entity that requires at least 50 associates or owners. Instead of a public limited company, a business person in Malaysia can set up a private limited company (Sendirian Berhad) and benefit from limited liability offered to owners of such type of business.
How to register your company in Malaysia
As mentioned earlier, the Company Commission in Malaysia is the institution in charge of company registration and it is present in each big city through its representative offices. Once the name of your future business has been accepted, it is suggested to start working on the company’s documents, a matter where a local company formation agent in Malaysia can provide comprehensive support. One should prepare documents like:
- the Articles of Association which provide information about the owners, managers and company’s secretaries, and the purpose of the business;
- a legal declaration that mentions the clear status of the appointed directors, meaning that they didn’t have trouble with the law or are not insolvent;
- some copies of the identification cards of the owners and directors;
- the declaration of compliance with the Companies Act in Malaysia;
- a letter issued by the Companies Commission in Malaysia that approves the name of the business.
Entrepreneurs can also establish franchises in Malaysia, in compliance with the Franchise Act 1998 that stipulates the regulatory framework for this type of business, but it is suggested to get in touch with a local lawyer or a company agent for in-depth information in this sense.