The requirements to register a local private limited company in Malaysia are:
(i) A minimum of two (2) subscribers to the shares of the company (section 14 of the CA);
(ii) A minimum of two (2) directors (section of the 122 CA); and
(iii) A company secretary who can either be:
(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 SSM.
Both the director and company secretary shall have their principal or only place of residence within Malaysia (sections 122 and 139 of the CA respectively).
The most common type of company incorporated for purposes of carrying on business is a company limited by shares. A company limited by shares may be incorporated as a:
- Private Limited Company – identified through the words ‘Sendirian Berhad’ or abbreviation ‘Sdn. Bhd’ as part of the company’s name.
- Public Limited Company – identified through the words ‘Berhad’ or abbreviation ‘Bhd’ as part of the company’s name.