【Malaysia Company Registration Tips】 The minimum paid-up capital for a Malaysian company starts from RM1, with no upper limit.-FOZL

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【Malaysia Company Registration Tips】 The minimum paid-up capital for a Malaysian company starts from RM1, with no upper limit.

Minimum paid-up capital in Malaysia starts from RM 1 and upwards with no upper limit. Paid-up capital refers to the amount of money received from shareholders for the issuance of shares. Paid-up capital is crucial for various reasons. It empowers the company with the financial ability to operate and grow, and it also helps build the company's credibility with creditors and suppliers, as it shows that the company has a solid financial foundation to support its operations.

Having sufficient paid-up capital is like having a pass that can meet various business needs, such as:

a) Submitting applications for licenses or relevant approvals for specific business activities, based on the minimum paid-up capital requirements set by the licensing or approving authorities. For example, the minimum paid-up capital for a Manufacturing License (ML) is RM 2.5 million, while for a Wholesale & Retail Trade (WRT) license, it is RM 1 million.

b) Some tender projects have minimum capital requirements for participation.

c) Meeting the minimum capital requirements of multinational companies, thus qualifying to become a reliable supplier and vendor.

d) Meeting the requirements of banks to qualify for credit facilities or other financial services.

Can a company increase its paid-up capital without transferring money to the company's bank account?

Absolutely not - any capital increase must provide proof or evidence to show that the company has received the corresponding funds from the shareholders. Failure to complete the capital increase fund transfer will be considered a serious illegal act, with a maximum fine of RM 5 million. ！！！

If you are considering registering a company in Malaysia, setting up a new factory, etc., FOZL is your best choice. We have extensive experience and a professional team dedicated to providing customized solutions for our clients. Welcome to contact the FOZL team, and we will be happy to serve you.

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