To Carry On Business As Merchants Companies in Malaysia

Under the Companies Act 1965, a merchant company is defined as a company which carries on business as merchants, bankers, money-lenders, Factors, brokers, commission agents, underwriters, Insurance agents, stock and share brokers, jobbers, Bill-discounters and as holders of merchant shipping.

A merchant company is required to have a minimum paid up capital of RM2.5 million. In addition, the company must also appoint at least 2 directors who are ordinarily resident in Malaysia. The company must also maintain a registered office in Malaysia.

The main activities of a merchant company are:

-To carry on business as merchants, bankers, money-lenders, Factors, brokers, commission agents, underwriters, Insurance agents, stock and share brokers, jobbers, Bill-discounters and as holders of merchant shipping.

-To engage in international trade and commerce.

-To act as agents or brokers for the sale or purchase of goods, commodities or services.

-To provide financing, credit and other financial services.

-To provide consultancy, advisory and other professional services.