Requirements

Sendirian Berhad (private limited company/LLC)

  • Malaysian companies require a minimum of 2 shareholders, 2 directors and a company secretary; the directors and company secretary must be resident in Malaysia. The company secretary must also be professionally qualified or licensed in the country.

Labuan companies

  • Investors may establish 100% foreign-owned companies in the Labuan free zone with a single director and shareholder, and the director need not be resident in Malaysia;
  • Like the normal Malaysian Sdn. Bhd, there is no minimum share capital requirement for a Labuan company.

Bumiputera companies

  • Bumiputera companies are established through the same process as the Sdn. Bhd., but are characterized by i) 100% equity ownership by ethnic Malays ii) 51% or more of the board seats filled by ethnic Malays and iii) 51% of the workforce being ethnically Malaysian.

Branch office

  • In order to register a branch of a foreign company in Malaysia, only a registered office and authorized agent are required;
  • This removes the requirement for two shareholders, which means that overseas companies may receive the entire benefit of their Malaysian sales without the use of a nominee;
  • The need for only one authorized agent also simplifies the LLC’s requirement for two resident directors;
  • Like with most branches, the tradeoff for these benefits is that responsibility for the branch’s liabilities lies with the parent company.

Representative office

  • There is no minimum requirement since this business entity is only used for support services and is not profitable.

Sole proprietorship/Partnership

  • The business owner must be registered by someone who is a Malaysian Citizen or a Permanent Resident;
  • The documents required to register a sole proprietorship or partnership are the company’s name, business activity and a photocopy of the business owner’s identity card;
  • He will also need to pay between RM 120 to RM 150 and this can be done at his nearest SSM office.

Free zone company

  • This business entity requires a minimum of 2 directors and 2 shareholders and a company secretary;
  • Additionally, the directors and secretary have to be living in Malaysia and the company secretary must be officially qualified;
  • There is no official minimum capital requirement for free zone. We however recommend to allocate at least US$50,000 to the free zone company.

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