Company Due Diligence in Malaysia

Updated on Monday 26th December 2022

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The due diligence process in relation to buying a company in Malaysia refers to checking all the available information on that business. This is an important step, where a team of experts verifies information from a number of fields, including accounting and law. 

Company purchases are substantial investments that need to be based on true figures and information. The goal of a due diligence is to determine if there are any financial or economic deficiencies and if the purchase is safe and potentially profitable. Our attorneys in Malaysia specialize in corporate law and can help you in all matters related to company verification and purchase.

Issues covered by a due diligence process

A due diligence process includes a comprehensive verification of all the data related to a specific company. The following areas are typically covered:
-    finance: the company’s financial records and audit reports, as required by law on a yearly basis;
-    legal: the business contracts signed by the Malaysian company with local and/or foreign collaborators as well as its employment contracts; 
-    business compliance: the type of company and whether or not it complies with the ongoing requirements for that type of legal structure;

The amount of information needed to determine if a certain business is compliant can depend on the type of business and the business field in which it operates. Some companies need to comply with further regulations in Malaysia, such as obtaining special permits and licenses. If this is the case, then the due diligence report will also include the status of these mandatory permits.

Citizenship in Malaysia can be your concern and you can be the ideal candidate if you have lived in this country for at least 10 years. If you also know Malay, then the process can be quite simple. In addition, you can also benefit from the support offered by one of our local lawyers who can guide you on the steps to follow in this endeavor. Therefore, we invite you to contact us by phone or online for more information.

Company verification in Malaysia

Most entrepreneurs will require all of the information available in order to decide whether to make a corporate purchase. The legal, financial and commercial information combined are able to provide a complete picture of the company’s true situation, how it compares to its competitors and if the new investor has good chances of improving or changing the business altogether. 

Due diligence is a good step for investor protection. If you would like to know more about the legislation for foreign investments in Malaysia or need legal services such as a due diligence report please contact our law firm in Malaysia