Set up a Limited Liability Company in Malaysia

Updated on Thursday 20th July 2017

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The most common type of legal entity incorporated in Malaysia is the limited liability company, also referred to as company limited by shares. The provisions stating the requirements for the registration of a company limited by shares are prescribed in the Companies Act 1965, the main statutory act regulating the legislation available for businesses in Malaysia. It is advisable to register a company limited by shares, as the shareholders are liable only in respect to their shares owned in the company. Our team of company formation specialists in Malaysia can offer assistance for the incorporation of a limited company

Legal requirements for a company limited by shares in Malaysia 

A company limited by shares can be registered as a public company (Berhad) or as a private company (Sendirian Berhad). The difference is given by the rights related to the ownership; a public company allows the general population to own shares in the company, while for the other type of legal entity this procedure is prohibited. 

More details on the limited liability company in Malaysia are available in the following video:

The company limited by shares should meet the following requirements: 

•    minimum two shareholders;
•    minimum two directors;
•    a company secretary. 

Although the Malaysian legislation allows foreigners to be the shareholders of a company set up here, the directors and the company secretary should have their main residence in Malaysia; our team of company formation agents can offer more details on the residency requirements. 

Advantages of a Malaysian private company limited by shares  

One of the most representative advantages of a business established as a private company limited by shares is the liability protection available for the shareholders, which are not fully liable for the company’s debts. 

At the same time, this type of company provides a simple procedure for the transfer of shares, in the situation in which the company will have new shareholders. 

The statutory documents of the company should stipulate that the maximum number of members is limited to 50; at the same time, the Acts should contain restrictions referring to the public’s participation in the company’s shares.

Persons who need further information on the company limited by shares (or limited liability company) or who want to open other type of company in Malaysia can contact our company incorporation representatives for more details. 



May 10, 2016

This type of company is chosen by most of the foreing investors who want to open a company in Malaysia.

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