To Carry On Business As Farmers Companies in Malaysia

The Companies Act 2016 defines a ‘farmer’ as a person carrying on business as a farmer, whether or not as a sole proprietor, partnership, limited liability partnership, company or cooperative.

A ‘farmer company’ is a company that is carrying on business as a farmer and is registered as a farmer company under the Companies Act 2016.

The Registrar of Companies (ROC) will maintain a public register of farmer companies.

The key features of a farmer company are as follows:

-A farmer company must have at least 2 directors who are natural persons and are residents in Malaysia.

-A farmer company must have a minimum paid-up capital of RM50, 000.

-A farmer company is not required to hold an annual general meeting (AGM).

-A farmer company is not required to prepare audited financial statements.

-The directors of a farmer company are not liable for the debts of the company unless they have acted recklessly, with intent to defraud or in bad faith.