Creating a Joint Venture in Malaysia
Updated on Wednesday 14th September 2016
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A joint venture in Malaysia can only be registered if the investors will establish a company limited by shares or a partnership. Malaysian authorities have recently changed many of their regulations referring to the foreign capital and it is important to know that the company limited by shares can now be fully owned by foreigners. However, the regulation is not applicable to all business fields available in Malaysia, but our team of company formation representatives in Malaysia can offer more details on this matter and also on the registration procedure available for the joint venture.
What is a joint venture?
A joint venture is a type of business which requires the association of two different companies that will work on a common project for a specified period of time. This type of company is very useful when accessing a new market, but investors of the two associated companies should decide upon important matters referring to the company’s operations and the distribution of profits.
An important aspect of the joint venture is that once the company reached the goals for which it was incorporated, the partnership can end. In this case, the business will be closed down, but investors can also sell it; our team of company incorporation agents in Malaysia can provide more details on the characteristics of a joint venture.
Regulations for joint ventures in Malaysia
A foreign businessman can access the Malaysian market through several options. He or she can open a company in Malaysia with 100% foreign ownership. The other option would be to set up a joint venture with a Malaysian partner, in which case the local company will have at least 50% ownership over the respective company.
In this particular case, the company should have a paid up capital of at least RM 350,000, while the minimum authorized capital should be RM 500,000.
Joint ventures in Malaysia can also be set up as partnerships, in which the purpose will also be a common business goal.
Businessmen interested in receiving further details on how to create a joint venture in Malaysia can address to our team of company formation consultants in Malaysia.