Written by Administrator | |
Thursday, 23 July 2009 | |
INCORPORATION OF A COMPANY IN MALAYSIA
In Malaysia, a business may be conducted in the following matter: –
In the case of 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. The Malaysian Companies Act 1965 governs all companies in Malaysia. The Act stipulates that a person must register a company with the SSM in order to engage in any business activity. It provides three types of companies: –
A Company having a share capital may be incorporated as a private company if its Memorandum and Articles of Association:
Such a company can offer shares to the public provided:
A public company can apply to have its shares quoted on the Kuala Lumpur Stock Exchange (“KLSE”) subject to compliance with the requirements laid down by the exchange. Any subsequent issue of securities (eg; issue by way of rights or bonus, or issue arising from an acquisition, etc) requires the approval of the Securities Commission. Requirements for a locally Incorporated Company A Company must maintain a registered office in Malaysia where all books and documents required under the provisions of the Act are kept. The name of the company shall appear in legible romanised letters, together with the company number, on its seal and documents. A Company cannot deal with its own shares or hold shares in its holding company. Each equity share of a public company carries only one vote at a poll at any general meeting of the company. A private company may, however, provide for varying voting rights for its shareholders. The secretary of a company must be a natural person of full age who has his principal or only place of residence of Malaysia. He must be a member of a prescribed body or is licensed by the SSM. The Company must also appoint an approved company auditor to be the company auditor in Malaysia to audit the accounts of the Company annually. In addition, the company shall have at least two directors who each has his principal or only place of residence within Malaysia. Directors of public companies or subsidiaries of public companies normally must not exceed 70 years of age. It is not incumbent that a company director also be a shareholder. Others Our nominee Directors and Shareholder services are available where the beneficial owner wishes to remain anonymous. We will be pleased to arrange for them to act, if needed. |