Establish a Company in the Fishing Sector in Malaysia
Updated on Thursday 18th July 2019
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The fishing sector is an important one, that plays a role in the country’s exports and also as a supply of foodstuffs for the local population. Fisheries are found along the coastal region and there are several fishing districts spread out along the coast of peninsular Malaysia and in other regions. The sector can be divided into the marine one, the inland one as well as the aquaculture one.
Investors who establish a company in the fishing sector in Malaysia can meet a steady demand in the local market as well as prepare part of the product for trade. When opening this type of business, it is advisable to reach out to one of our lawyers in Malaysia who can assist investors who wish to start a fishery. This is a recommended step for foreign investors who need to know more about the regulations for the establishment itself, food safety, employment in the sector as well as the regulations for export.
How to open a company in the fishing sector
The Malaysian population relies heavily on fish as a main food source and the fish production in the country is one that covers both the demand of the local population, including individuals living in rural fishing areas and the export demands for selected categories of products.
The fishing sector in Malaysia can be divided into two main categories: the marine sub-sector and aquaculture. The majority of the fish is derived from capture fisheries, with the lowest degree of production coming from inland fisheries. Each of these sub-sectors can be subject to local regulations, in addition to general ones. An expert from our law firm in Malaysia can provide assistance for investors in specific areas.
Below, we list the main types of fisheries:
- Coastal or inshore fishery: the fishing vessels operate within 30 nautical miles from the coastline; these fisheries generally have a maximum exploitation level.
- Deep-sea fishery: the fishing vessels operate in this case within 30 nautical miles from the shoreline.
- Trawl fishery: when the fishermen use a trawl be used to harvest species like prawn; other traditional fishing methods can include hook-and-line, lift nets, seine nets, traps, and others.
- Aquaculture: the sector with a large potential for development, contains freshwater culture fish but also ornamental fish.
Fisheries function in a manner in which they can promote rehabilitation as well as the conservation of marine resources. Our lawyers in Malaysia can provide detailed information about the regulations for the ecosystems approach to fishing.
The Fisheries Act, as well as other laws, are relevant for this business sector, serving as legal guidance for the protection of the fisherman’s rights, the protection of the natural resources and at the same time issuing a general guideline for the functioning of marine and inland fisheries.
One of our attorneys in Malaysia can help investors with complete information about the current legislation. Our lawyers can provide information on the special administration regime for fisheries, the control of fishing, the establishment of companies in this field and the licensing of local fishing operations.
Conditions for company creation, presented by our lawyers in Malaysia
The steps below are essential when opening accompany in Malaysia:
- Select a name: each company mush select an available name and reserve it; this can be done during the application for company formation;
- Prepare the company documents: the Articles of Association, a Declaration of Compliance, a Declaration from the directors and other documents are needed to register the company;
- Additional licensing: like other business sectors, fishing is one in which licensing is required; companies can obtain licenses for coastal fisheries only under certain conditions; one of our attorneys in Malaysia ca give investors more details about this step.
- Other steps: the company must appoint a secretary within 30 days from the incorporation and is required to have a bank account.
One of the experts at our law firm in Malaysia can provide investors with more details about these steps and any particular requirements.
The list below includes several statistics about the fishing sector in the country:
- production of 1,574,443 tons of fish in 2016;
- production of 1,486,050 tons of fish in 2015.
The data is for marine capture fish, according to a report from the Food and Agriculture Organization of the United Nations. Investors in this field who wish to know more about employment regulations in this field can reach out to our lawyers in Malaysia.
Aquaculture is thought to become the main manner in which future fisheries will continue to expand. This can have a positive impact on rural employment, the development of the sector as well as the growth of export in this particular food supply category.
Investors who wish to know more about the conditions for starting a fishery in Malaysia, for local and foreign entrepreneurs alike, can contact our law firm in Malaysia. One of our legal experts will be able to answer any questions related to regulation and control in this sector.