To Carry On The Business As Manufacturers Companies in Malaysia

The Companies Act 2016 requires companies to carry on their business as manufacturers if they are registered as such. The definition of a manufacturer under the Companies Act 2016 is “a person who carries on business in Malaysia and who makes, alters, repairs, assembles, manufactures or processes, whether for sale or otherwise, any article or substance with the aid of any machinery or plant”.

The requirements for companies to carry on their business as manufacturers are set out in section 84 of the Companies Act 2016. These requirements are as follows:

(1) The company must have at least two directors who are ordinarily resident in Malaysia;

(2) The company must have a registered office in Malaysia;

(3) The company’s constitution must state that the company is a manufacturer;

(4) The company must carry on business as a manufacturer in Malaysia; and

(5) The company must not be a subsidiary of a foreign company.

If a company fails to comply with any of the above requirements, it will be guilty of an offence and liable to a fine of RM50,000.