Open SPV/SPE Company in Malaysia
Updated on Tuesday 11th October 2016
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A SPV/SPE company refers to a special purpose vehicle/entity, which is registered as a subsidiary with a legal status which allows it to secure its asset structure in such a manner in which the respective entity will not be affected in the situation in which the parent company enters into bankruptcy. In Malaysia, investors can set up a SPV/SPE company, following a set of regulations in this sense. Foreign investors are advised to receive assistance from local specialists and our team of company incorporation representatives in Malaysia can provide an in-depth presentation on this matter, as well as on the registration procedures.
Legislation referring to a SPV/SPE company in Malaysia
In order to open a company in Malaysia registered as a SPV/SPE, investors have to follow the rules prescribed by the Securities Commission Act 1993. The legislation stipulates that, if a person issues structured products or offers them for subscription or purchase, he or she has to register for approval from the Securities Commission of Malaysia.
The legislation also states that amongst several other types of entities, the SPV/SPE incorporated in Malaysia is considered an eligible issuer, provided that the respective entity is sponsored by a qualified bank.
They can also be sponsored by a qualified dealer or by the Cagamas Berhad, the National Mortgage Corporation. Our team of company formation consultants in Malaysia can offer more details on the requirements referring to the eligibility of the SPV/SPE.
The purpose of a SPV/SPE company in Malaysia
A SPV/SPE company is incorporated to develop a specific investment project (an infrastructure facility) in a period of a few years. In order to do so, the company will require a license, issued for the respective number of years. At the end of the project, the facility will enter into the possession of the Malaysian state.
The licenses issued in Malaysia for SPV/SPE companies are valid for a period that can vary between 12 to 99 years. It is important to know that the local legislation stipulates that the Malaysian government can retain a part of the company’s equity through a Malaysian company, part of the SPV/SPE.
The SPV/SPE can also be incorporated in the region of Labuan, known for its tax-friendly framework.
Businessmen interested in the registration procedure of a SPV/SPE company are invited to address to our team of company formation agents in Malaysia.