Local Company

INCORPORATION OF A COMPANY MALAYSIA

The two types of companies that can be incorporated under the Companies Act 1965 (CA 65) are:


  • A company limited by shares
  • Successfully applied for the setting up of First and Second Private Trust Companies in Labuan (as at June 2011).
  • An unlimited company


1. COMPANY LIMITED BY SHARES



A company having a share capital may be incorporated as a private company (identified through the words ‘Sendirian Berhad’ or ‘Sdn. Bhd.’ appearing together with the company’s name) or public company ‘Berhad’ or ‘Bhd’ appearing together with the company’s name).

The requirements to form a company are:


  • A minimum of two subscribers to the shares of the company (Section 14 CA);
  • A minimum of two directors (Section 122); and
  • A company secretary who can be either :
    • An individual who is a member of a professional body prescribes by the Minister of Domestic Trade Cooperative and Consumerism; or
    • An individual licensed by the Companies Commission of Malaysia (SSM)

Both the director and company secretary shall have their principal or only place or residence within Malaysia.



2. UNLIMITED COMPANY



The procedures and Incorporation Documents for the incorporation of an unlimited company is the same as company limited by shares. The only difference is that for an unlimited company, the liability of its members must be stated in the Memorandum of Association as unlimited.