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.