The Companies Act 2016 (“CA 2016”) came into force on 31 January 2017, providing easier incorporation of companies compared to the previous Companies Act 1965. Under the CA 2016, a company can be incorporated by a single shareholder, allowing that shareholder to have complete control over the company while still enjoying the separate liability of the corporate entity. This makes it more attractive for businesses, entrepreneurs and business owners to incorporate a company in Malaysia.
They are several types of companies that can be incorporated under the CA 2016:
1. Company limited by shares;
2. Company limited by guarantee; or
3. Unlimited company.
A company limited by shares can be either a private company or a public company. In Malaysia, most business owners prefer to incorporate private limited companies or public limited companies. The minimum requirements that you should know before incorporation are described below：
In addition to enjoying limited liability status, both private and public limited companies are obligated to adhere to the provisions outlined in the CA 2016. This legislation provides a structured framework that encompasses various requirements for the establishment, management, and dissolution of a company. These requirements cover vital aspects such as the maintenance, preparation, and auditing of financial statements, as well as other corporate governance provisions including disclosures, conflict resolution protocols, and reporting obligations as stipulated in the CA 2016. As a result, operating a business as a private or public limited company instills a higher level of credibility in the eyes of the stakeholders due to the assurance and compliance demanded by law.
YYC, we offer professional guidance and advice throughout the entire pre and
post-incorporation process to assist you in efficiently incorporating your