Create a Company for Manufacture of Beverages in Malaysia

Updated on Wednesday 04th September 2019

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The food and beverage industry in Malaysia is an important one that is subject to fast-paced growth. Investors who create a company for the manufacture of beverages in Malaysia are concerned with the quality of the product and continue to launch new products while observing the main market trends. A company can enter the market with a number of products that can include ready-to-drink bottles as well as drink mixes or special blends. 
Coffee or tea drinks, as well as fruit drinks and sodas, are examples of beverages manufactured by companies in Malaysia. The demand for halal food and drinks is also a significant one as a large percentage of the population is Muslim. Companies can choose to provide halal drinks exclusively or develop a special line of products that targets these customers.
Our team of lawyers in Malaysia can help investors open a beverages manufacturing company in compliance with the ongoing regulations, whether they are important halal ones or international standards. Thus, our team can not only help investors incorporate the business but also meet the standards in the industry as far as the Ministry of Health laws is concerned. 

Different types of beverages

Companies in the beverages industry offer a wide array of products and they are involved in the development of house brands, products that are launched on the local market and, in some cases, are also exported. 
Companies will try to differentiate themselves on the market, this is why it is recommended to perform a market research and to have a business plan. Some examples of manufactured drinks include the following:
  • Fruit drinks: ready-to-drink mixes or fruits that can also contain vitamins; can be sold in a variety of ranges and can include especial mixes for children.
  • Fruit drink base concentrate: concentrated fruits and vegetables or fruit purees; can be sold as a single base or as a combination of fruits and vegetables.
  • Fruit concentrates: syrups in a variety of flavors that are used by customers to prepare their own drinks.
  • Others: tea, ice tea mixes, sodas and energy drinks as well as coffee mixes can be sold in a ready-to-drink form.
  • Drinking water: beverages manufacturing companies will also bottle regular or sparkling drinking water.
Investors are required to observe the Good Manufacturing Practices for all of the types of beverages described herein. Different rules and regulations can apply per different types of products, for example, those companies that bottle water must do so from a source that has been approved by the Malaysian Ministry of Health. Our team of lawyers in Malaysia can provide investors with complete information about the laws in force for the production, preparation, and storage of beverages.
A distinct category that is not listed in the aforementioned list includes alcoholic beverages. Our team of lawyers can provide investors with separate information about these types of drinks. 
Companies must also observe the requirements for labeling and packaging, which are important in this field as well as in the food sector in general. The product must contain the list of ingredients and it must be packed in a hygienically manner, in a suitable bottle or other types of recipients such as an aluminum can, according to its category. 

Company formation in Malaysia

Investors who open a company for the manufacturing of beverages need to follow the general incorporation steps. The private limited company, or the Sdn Bhd is the most popular business form among investors and it is also suitable for those who plan on manufacturing and selling drinks. The primary advantage is that the company has a legal identity and the founders are only liable up to the extent of the capital they invest.
Below, our team of attorneys in Malaysia lists the four main steps for opening a company:
  1. Select the name of the company: we recommend choosing three different names and then checking their availability;
  2. Prepare the documents: one of our lawyers can help investors draw up the company’s Articles of Association.
  3. Prepare for incorporation: the founders shall gather for the signing of the incorporation documents, a step that is mandatory for the actual registration. 
  4. Register: the new company is registered with the Companies Commission and once the certificate is issued, it can start trading.
  5. Others: this step will include obtaining the special permits and licenses that are needed by a company that manufactures drinks.
One of our lawyers in Malaysia can help investors throughout these steps.
According to the Department of Statistics, the food and beverages sector is a developed one, as seen below:
  • in 2017 there were 167,490 companies in this field, compared to 130,570 companies in 2010;
  • in 2015, the number of individuals engaged in this sector was 891,616;
  • the value of gross output in 2015 was 66,4 billion RM.

Contact our law firm in Malaysia for complete information on how to start a company in the beverage manufacturing industry.