Establishment Companies in Malaysia

The term ‘establishment company’ is not defined in the Companies Act 1965 (“CA 1965”). In general, an establishment company is a company which has been incorporated in Malaysia and which has its principal place of business in Malaysia.

The following are some of the key requirements for an establishment company in Malaysia:

1. The company must be incorporated in Malaysia.

2. The company must have its principal place of business in Malaysia.

3. The company must have a minimum paid-up capital of RM2 million.

4. The company must have a minimum of two directors who are resident in Malaysia.

5. The company must have a company secretary who is resident in Malaysia.

6. The company must maintain a registered office in Malaysia.

7. The company must file its annual return and financial statements with the Companies Commission of Malaysia (“CCM”).

8. The company must comply with the provisions of the CA 1965 and the regulations made thereunder.