Commercial Code in Malaysia

Updated on Wednesday 22nd August 2018

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The Commercial Code in Malaysia is based on the Civil Law and additional laws that provide for the functioning of the business and commercial climate in the country. Political and economic developments in the region have offered an opportunity to revise and improve the legislation for doing business in Malaysia. The commercial law is largely based on the English commercial law model.

Our law firm in Malaysia offers professional legal consulting services in all legal areas, including commercial legislation and the civil law. If you are interested in doing business in Malaysia and want to know more about the legal system you can request our help.

Business law in Malaysia

The Malaysian Commercial Code applies to businesses engaged in trade, sale and any other type of commercial activities in the country. It includes both issues related to private law and public law. The legal system in Malaysia is based on the common law model but the Syariah system also applies to issues concerning Muslims and the Muslim faith.

Foreign investments in Malaysia are permitted by law and there are few restrictions as per the business fields in which foreign investors may open a company. Industries are regulated using various laws and special permits and licenses are needed for some companies. Business fields that are subject to regulation include financial services and insurance, communications, education, energy and water supply, the petroleum industry and others. Our attorneys in Malaysia can give you complete details regarding investments in specific fields.

The video below highlights the main provisions of the Malaysian Commercial Code:

Doing business in Malaysia 

The Commercial Code and the Civil Law along with the Companies Law are important legal sources for doing business and opening a company in Malaysia. Investors in Malaysia have a number of types of companies they can incorporate or they may choose to open a branch of the foreign corporation.

Several special provisions apply for the formation and registration of new companies, among which one of the most employed business forms is the limited liability company. Corporate reporting and employment are also regulated by law.

Our lawyers in Malaysia can provide you with essential information about the laws and regulations for foreign investments, including the specific provisions of the Commercial Code. You can contact us if you are in need of adequate legal aid.