Corporate Law in Malaysia

Updated on Thursday 01st December 2016

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The Corporate Law in Malaysia is included in the Companies Act, the most important legislative document to govern the formation, administration and management of a company. The tax, accounting, and audit requirements are also stipulated in this document. A special division of the Companies Act is assigned to foreign companies in Malaysia.

Our lawyers in Malaysia handle business and corporate matters, including company formation, liquidation or corporate litigation. 
 

Company formation and liquidation in Malaysia


According to the Companies Act, two or more individuals may form a company if they intend to use the legal entity for lawful purposes and if they meet the requirements for registration. Companies in Malaysia can take the form of a company limited by shares or guarantee, a company limited both by shares and guarantee or an unlimited company. Partnerships and sole proprietorships can also be incorporated.

The Malaysian Corporate Law applies to foreign companies only if they have a place of business in the country. These foreign legal entities are allowed to hold immovable property in the country. Our lawyers in Malaysia can give you further details on the provisions for foreign companies, including the mandatory existence of a bank account or that of special permits and licenses issued by the relevant Malaysian authorities. 
 

Company management and control in Malaysia


Companies are required to set up their registered office within two weeks from their incorporation or on the day the commence their commercial activities. All correspondence is to be sent to this office and it must be open to the general public within the predetermined work hours. 

The management and control of a company, as far as its directors, shareholders and managers are concerned, is also described in the Companies Act. Malaysian companies must appoint at least two directors who are residents or have their main place of residence in the country. The appointed individual must be over 18 years of age and the one that occupies the position of the first director will be named in the company’s Articles of Association and/or the Memorandum.

Companies in Malaysia must comply with the Financial Reporting Act and appoint their auditors before the first annual general meeting. Company liquidation and winding up is also regulated by the Companies Law. This step can be voluntary or mandatory and it involves the appointment of liquidators by the Official Receiver (or otherwise).

Our lawyers are able to help you with more information about the Companies Act, its interpretations, and subsequent amendments.

You can contact us if you have any questions about company incorporation and management in the country.

 

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