In the recent years, the economic downturn from Europe and America induce companies reinvest their capital into Asia market. Since China is now suffering from high inflation rate, more companies are willing to invest in the developing market, which able to maintain their operating costs. The Associate of Southeast Asian Nations, such as Malaysia, which political stable and steady economic growth, would be one of the best choices for these companies.
However, register a company in Malaysia by a foreign company is not as easy as set up company in Hong Kong. The Company Commission of Malaysia set out some criteria at which foreign may not easy deal with, for example, minimum 2 directors must be the resident of Malaysia. With our experience and network at Malaysia, we may able to follow up these companies to set up company as smooth as possible.
Standard requirement for Malaysia Limited Company
|Proposed company name||English and Chinese|
|Standard authorized share capital||RM$100,000 (c)|
|Minimum share capital||RM$2 at RM$1 each (d)|
|Minimum shareholder||2 Natural person or legal entity|
|Minimum director||2 Natural person or legal entity (a)|
|Company Secretary||Compulsory (b)|
a. At least 2 directors are local resident. The two directors may or may not hold shares.
b. The company secretary should be a member of a professional body prescribed by the Minister or is licensed by the Company Commission of Malaysia. A company secretary could also be the director of the company.
c. Depends on the size of authorized capital, the Companies Commission of Malaysia will charge a registration according to the following basics:
|Authorized Capital (RM$)||Registration fee (RM$)|
|Up to 100,000||1,000|
|100,001 – 500,000||3,000|
|500,001 – 1 million||5,000|
|1,000,001 – 5 million||8,000|
|5,000,001 – 10 million||10,000|
|10,000,001 – 25 million||20,000|
|25,000,001 – 50 million||40,000|
|50,000,001 – 100 million||50,000|
|100 million and above||70,000|
d. If the foreign director decided to act as a working director at Malaysia, the director must apply the Work Permit. If company needs Work Permits, company’s capital should be fully paid up. Besides, for the Company Commission of Malaysia required the minimum paid up capital should follow the following basics.
|Structure and business nature||Minimum paid up capital (RM$)|
|100% local (Malaysian) owned||250,000|
|Local and Foreign owned (without warehouse, retail & trading approval)||350,000|
|Local and Foreign owned (with warehouse, retail & trading approval)||500,000|
|100% Foreign owned (without warehouse, retail & trading approval)||500,000|
|100% Foreign owned (with warehouse, retail & trading approval)||1 million|
Advantages of Malaysia Limited Company