Business
The Companies Act 2016 modernised incorporation and directors' duties
The Companies Act 2016 replaced the 1965 Act, abolishing authorised capital and par value, permitting single-director single-shareholder private companies, and introducing a solvency-statement based distribution regime. At least one director must ordinarily reside in Malaysia. Bumiputera equity conditions apply in some licensed sectors rather than generally.
Governing law
- Companies Act 2016 (Act 777) — Replaced the Companies Act 1965.
- Labuan Companies Act 1990 — Offshore company regime.
In practice
A private company requires at least one director ordinarily resident in Malaysia. No-par-value shares; distributions require a solvency test. Companies register with the Companies Commission of Malaysia (SSM). Foreign companies must register a branch to carry on business in Malaysia. Bumiputera equity requirements are sector-specific licence conditions, not a general company law rule — check the relevant regulator. The Labuan International Business and Financial Centre operates a separate company and tax regime.