Establish a Financial Company in Malaysia

Updated on Friday 17th February 2023

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Malaysia’s financial sector is diverse and presents many opportunities for investors who wish to establish a financial company in Malaysia

Bank Negara Malaysia, the Central Bank of Malaysia, promotes the development and the sustainable growth of the financial sector in the country and, for this purpose, it enforces a financial sector master plan that includes many points of development, such as developing the domestic financial infrastructure and maintaining a competitive financial environment. 

One of the experts at our law office in Malaysia can help you with detailed information on the particularities of the banking and financial sector in the country.

The financial services sector in Malaysia

The two main legal resources for the financial sector in Malaysia are the Financial Services Act and the Islamic Financial Services Act (the equivalent for the Islamic finance sector).

The Ministry Of Finance and the Bank Negara Malaysia (BNM) are two important bank regulators in the country. Apart from observing the supervision of these banking and financial sector regulators, financial services companies in Malaysia are also subject to the rules and regulations imposed by the Companies Commission. For example, banks in Labuan must function as a locally incorporated company or branch (registered with the Commission) and are subject to the Labuan Companies Act.

Companies that operate in commercial banking, investment banking or Islamic banking must obtain the relevant licenses from the Bank Negara Malaysia, which forwards the application to the Ministry. 

If you are in need of specialized assistance for license applications, one of our lawyers in Malaysia can help you.

Opening a company in Malaysia

A popular business type among investors in Malaysia is the limited liability company. The conditions to start this type of company is to have a unique name, a bank account and the minimum share capital deposited in that bank account, to prepare the company’s Articles of Association, and to register the company with the Companies Commission of Malaysia. 

Foreign financial service providers can establish a branch in Malaysia. One of our lawyers in Malaysia can give you more information on the advantages and the limitations of this business form.

You can get in touch with our commercial lawyers in Malaysia if you encounter legal problems. company owners can talk to us if they are involved in commercial disputes. We will give maximum attention to each case presented, as well as the optimal defense strategies. On the other hand, we are here and can offer legal support before signing partnerships or business contracts. it is good to know that you have at hand alternative dispute resolution for contract disputes.

You can contact the experts at our law firm in Malaysia for more details on investments in the financial sector and how to open a company in this business field.