Establish a Holding Company in Malaysia
Updated on Monday 05th September 2016
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A holding company in Malaysia is set up in order to control and manage the assets and the investment policies of another company. Usually, the holding company represents a parent company for the other business in which it holds voting shares. They can also be incorporated to own various types of properties, usually in the real estate and copyright fields. Investors who are interested in registering a holding company in Malaysia can address to our team of company formation representatives in Malaysia, who can offer assistance for all the states of the registration process.
Malaysian holding company
Investors interested in company formation in Malaysia should become familiar with the provisions of the Companies Act 1965, the main rule of law for commercial companies operating on this market.
According to the Section 5 of the Companies Act, a business is considered a holding company if it has the following rights:
• controls the board of directors;
• owns more than 50% of the voting rights in the other company (which can be considered a subsidiary);
• owns more than 50% of the issued share capital of the subsidiary.
Moreover, the holding company has the right of appointing directors in the other company and the subsidiary can’t act in this sense without the consent of the holding company; our team of company incorporation consultants in Malaysia can offer more details on the legal procedure of appointing directors.
Membership in a Malaysian holding company
Those who want to open a company in Malaysia registered as a holding company should know that they can’t accept a corporation as a member of the respective company. More importantly, the transfer of shares from a holding company to one of its subsidiaries is not allowed in Malaysia, as prescribed by the Section 17 of the Companies Act.
The legislation is not applicable in the situation in which the subsidiary is comprised of a personal representative or a trustee.
Foreign investors can also invest in an investment holding company, which is more suitable for the real estate market.
Businessmen interested in receiving more details on the holding companies in Malaysia can address to our team of ompany incorporation agents in Malaysia.