To Carry On The Business Of Companies in Malaysia

The Companies Act 2016 is the latest legislation governing the incorporation and operation of companies in Malaysia. It came into effect on 31 January 2017 and repealed the Companies Act 1965. The Companies Commission of Malaysia (SSM) is the statutory body responsible for administering and enforcing the Companies Act 2016.

The objectives of the Companies Act 2016 are to:

- Promote and facilitate the formation of companies in Malaysia;
- Regulate the operation of companies in Malaysia;
- Provide for the better governance of companies in Malaysia; and
- Enhance the competitiveness of Malaysian companies.

The Companies Act 2016 requires all companies incorporated in Malaysia to have a registered office in Malaysia. A company may only carry on business in Malaysia if it is registered with the Companies Commission of Malaysia.

The Companies Act 2016 sets out the requirements for the incorporation of a company in Malaysia, including the minimum number of shareholders and directors, and the minimum paid-up capital. A company must also have a company secretary who is responsible for ensuring compliance with the Companies Act 2016.

Once incorporated, a company must comply with the ongoing requirements of the Companies Act 2016, including maintaining proper accounting records and holding annual general meetings.