Set Up a Construction Company in Malaysia

Updated on Tuesday 08th August 2017

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In order to set up a construction company in Malaysia, investors will need to follow the standard procedures for registration with the Companies Commission, for licensing and for setting up their adequate offices in the country.

One of our lawyers in Malaysia can help you invest in a construction business and can answer any questions regarding licensing and control in this field.

Requirements for construction companies in Malaysia 

Construction companies in Malaysia are subject to special licensing and approval from the local construction authority. These types of companies need to apply for a construction license.

The Construction Industry Development Board (CIDB) in Malaysia issues the document and the permit applies for specific categories of work. Those who fail to register altogether are subject to a fine and those who are licensed are only allowed to perform the work covered by their valid license.

The licensing grades are calculated according to the construction project’s tendering capacity, with values ranging from 200,000 RM to 10 million RM or over. Contractors who execute projects with a value over 500,000 RM need to notify the CIDB.

Construction companies need to hire qualified personnel. Individuals working in the sector must be registered with the CIDB and work based on a valid certificate, issued for their specific skills. Individuals who work in the construction sector without a valid permit are subject to a fine. One of our lawyers in Malaysia can give you more information on Act 520 and the specific legal requirements for working in the construction sector.

Company formation in Malaysia

Investors in Malaysia have to follow a few steps for company incorporation: drafting the Articles of Association, opening a bank account, registering the company with the Companies Commission. 

Foreign investors in Malaysia need to cooperate with a local shareholder or a local individual who will act as the company director, as there are requirements regarding the nationality of the individual in this position. We recommend that you talk to one of our attorneys in Malaysia for more information on the conditions for foreign investments.

Contact our law office in Malaysia for assistance in company formation and investments in the construction sector.