Business structure in Malaysia

Incorporating a foreign company

Representative Office

Can only work in managing the interests of the company or its subsidiaries. It is not allowed to carry out any business or transactions entailing earnings.

Branch

It is only applicable for very specific cases (such as tenders in infrastructures that require this).The parent company takes on all the obligations of the branch. These are more complicated to run than limited liability or public limited companies.

Malaysia has a potential for sustainable growth of 5%. Its aim is to reach a per capita income of 15,000 USD in the next 10 years.

Incorporating a Malaysian company

Mercantile laws and regulations in Malaysia follow the British tradition and there is consequently some flexibility for reaching partnership agreements.

Limited liability company

The form is that of the limited company by shares, similar to a public limited company. The capital can be wholly foreign (natural person or legal entity). There are restrictions in some sectors. There have to be at least two administrators resident in the country.

Joint venture

This is a very common way of doing business, requiring a Malaysian partner. They are not very widespread in the service sector because there are restrictions on foreign investment. It must have the legal form of a limited company by shares