Company Type Selection Guide: Choosing the Right Structure for Your Malaysian Business
Choosing the right company type when registering a company in West Malaysia is a crucial step in the entrepreneurial process. Different company types suit different business needs and development goals. Today, FOZL will provide a detailed introduction to several main company types, including private limited companies, public listed companies, limited liability partnerships, sole proprietorships, partnerships, and foreign companies. We hope that through this article, you will have a clearer understanding of the characteristics and requirements of each company type, helping you make the most suitable decision for your business development.
I. Private Limited Company
This type of company requires at least one shareholder and can have up to 50 shareholders. The liability of shareholders is limited to their shareholding amount, and shares cannot be publicly sold, only through private transactions. The company must have at least one director and one company secretary, and the director must be a Malaysian resident. Private limited companies are governed by the Malaysian Companies Act 2016.
II. Public Listed Company
There is no upper limit on the number of shareholders for a public listed company, but at least two shareholders are required. The liability of shareholders is also limited to their shareholding amount, and shares can be publicly traded on the stock exchange. The company must have at least two directors and one company secretary, and the directors must also be Malaysian residents.
III. Limited Liability Partnership
This company type requires at least two partners, with no upper limit on the number of partners. The liability of partners is limited to their contributed capital, and the management structure is relatively flexible, allowing for self-determination. Limited liability partnerships are governed by the Malaysian Limited Liability Partnerships Act 2012.
IV. Sole Proprietorship
Owned and operated by one person, the owner bears unlimited liability, meaning they are fully responsible for the company's debts. Management is determined by the owner, and business decisions are flexible.
V. Partnership
Requires at least two partners, and partners bear unlimited liability for the company's debts and obligations. Management is jointly decided by the partners, and specific management methods can be stipulated in a partnership agreement.
VI. Foreign Company
Foreign companies can establish branches or representative offices in Malaysia, must appoint a Malaysian resident, and must register with the Companies Commission of Malaysia and comply with relevant regulations.
If you are considering registering a company in Malaysia, establishing 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.
FOZL accompanies you to see the world and create social value.
Relevant Knowledge
Malaysia Office：Suite 1, Level 23, Menara KOMTAR, 80888 Ibrahim International Business District, Johor Darul Ta‘zim, Malaysia
Tel：+607 272 5827
E-mail：enquiry@fozl.sg
Follow Us