Establish And Carry On Business As General Merchants Companies in Malaysia
The term ‘general merchant’ is defined in the Companies Act 1965 as a company which is engaged in or carries on business as merchants, factors, commission agents, brokers, importers, exporters or otherwise in the buying, selling or otherwise dealing in goods, wares or merchandise of any description whatsoever for or on behalf of its customers or otherwise.
A company which is registered as a general merchant company is not restricted to carrying on business as a general merchant only. It may also carry on business as a manufacturer, distributor, service provider or any other type of business.
However, a general merchant company must comply with the following requirements:
1. The company must have a minimum paid-up capital of RM2 million;
2. The company’s articles of association must contain provisions relating to the company’s business as a general merchant; and
3. The company must appoint at least two directors who are resident in Malaysia.
A general merchant company which fails to comply with the above requirements will be liable to a fine of RM50,000 and its registration as a general merchant company will be cancelled.
A company which is registered as a general merchant company is not restricted to carrying on business as a general merchant only. It may also carry on business as a manufacturer, distributor, service provider or any other type of business.
However, a general merchant company must comply with the following requirements:
1. The company must have a minimum paid-up capital of RM2 million;
2. The company’s articles of association must contain provisions relating to the company’s business as a general merchant; and
3. The company must appoint at least two directors who are resident in Malaysia.
A general merchant company which fails to comply with the above requirements will be liable to a fine of RM50,000 and its registration as a general merchant company will be cancelled.
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