Remove Authorised Capital in Malaysia? When?

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What is authorised capital for a company registered in Malaysia? or we are more commonly called it authorised share capital?

Every Company need to register its authorised capital upon its incorporation with Suruhanjaya Syarikat Malaysia (SSM). The amount of authorised capital will be stated in the Memorandum of Association of every Company.

It is quite common to see a number of new incorporations is in the form of private limited (liability) company, or Sendirian Berhad (Sdn. Bhd.)

(Update) Sooner or not, the concept of authorised share capital will be removed following one of the recommendations proposed by Corporate Law Reform Committee (CLRC) of The Companies Commission of Malaysia in their Final Report – Review of the Companies Act 1965 published in November 2008. However, those recommendations in the Final Report have not been put forward into a Draft Companies Bill so far, which is to effect the amendments to the Company Law in Malaysia.

http://www.nbc.com.my/authorised-capital.html

4 COMMENTS

  1. What is “Paid Up capital? does it necessary to bring the paid up capital before registering SDN BHD company in Malaysia. I mean, if I register a company (100% foreign owned) and ro apply work permit, the immigration requirement is that the comapny MUST have RM 500,000 minimum paid up capital. What is this? do I need to bring this amount or it is just to declare RM 500,000 in memorandum & articles of association as a paid up capital?
    Please reply me.

  2. And how much would you charge if I wish to register 100% foreign owned company with RM 500,000/1 million SDN BHD company. (Please note, I live in Pakistan)

  3. Authorised Capital is the nominal amount of registered capital (no real money) as to be stated in the memorandum & articles of association.

    Paid up Capital is the REAL MONEY you actually bring in (say CASH), up to a maximum of amount per Authorised Capital.

    Hope this clarifies.

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