For any business entrepreneur, selecting an ideal jurisdiction for company incorporation is a critical decision. Some of the most important variables to consider include the costs and procedures associated with incorporation, the regulatory requirements of the local Companies Commission and the degree of foreign ownership and directorship allowed.
In Malaysia, company incorporation is a relatively easy and quick process. The favorable market conditions, strong economy, tax benefits and 100% foreign ownership has encouraged several entrepreneurs to incorporate limited liability (Sdh Bhd) companies in Malaysia. Foreign investors are required to apply to a foreign investment committee when applying for more than 30% shareholding of their newly incorporated company.
In addition, setting up a company in Malaysia requires the appointment of a company secretary. According the rules set out by the Companies Commission Malaysia (abbreviated SSM in local vernacular), the company secretary shall be a local resident and a natural person and not a corporate. The secretary shall also be a member of any professional body as prescribed by the Minister of Domestic Trade and Consumer Affairs or as licensed by the SSM itself.
