Malaysia is one of the few Asian countries that have seen an increase in the number of foreign investors in the last few years. The country hosts several foreign and multinational companies because of the numerous business opportunities it offers. Among the industrial opportunities taken up by foreign investors include; gas, automotive manufacturing, oil, food, luxury products, aerospace, mineral exploration just to mention but a few. Most foreign-owned businesses are located in the capital Kuala Lumpur, particularly in the Klang Valley. It is important to point out that among the world’s major exporters, Malaysia is ranked number 22 and this could be the reason for the increase in the number of foreign investors.
If you are thinking of setting up a company in Malaysia, there are several things you must know about this country and the business environment as can be seen below:
Three types of companies are recognized in Malaysia: the Public Liability Company, the Limited Liability Company (LLC) and the general partnership. Just like in other countries, the PLC and the LLC requires a minimum of 2 people and a maximum of 50 shareholders, each having a minimum of two ordinary shares. It is noteworthy to state that partner’s liability to the company is limited to the nominal value of the shares.
A partnership business in Malaysia requires a minimum of 2 shareholders and a maximum of 20. The liability in this type of business is joint, and there is no least amount of capital needed in starting such a company.
