INCORPORATION OF A LOCAL COMPANY IN MALAYSIA
There are three types of companies that can be incorporated under the Companies Act 1965
(“CA”). They are:
• A company limited by shares
• An unlimited company
• A company limited by guarantee
For the purpose of conducting business in Malaysia, the most common type is a company limited
by shares.
COMPANY LIMITED BY SHARES
A company having a share capital may be incorporated as a private company (identified through
the words ‘Sendirian Berhad’ or ‘Sdn. Bhd.’ appearing together with the company’s name) or public
company (identified through the words ‘Berhad’ or ‘Bhd.’ appearing together with the company’s
name). The requirements to form a company are:
i. A minimum of two subscribers to the shares of the company (Section 14 CA);
ii. A minimum of two directors (Section 122 CA); and
iii. A company secretary who can be either:
a. an individual who is a member of a professional body prescribed by the Minister of
Domestic Trade and Consumer Affairs; or
b. an individual licensed by the Companies Commission of Malaysia (“SSM”).
Both the director and company secretary shall have their principal or only place of residence
within Malaysia.
