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June 8, 2020 By Adviser

Joint Venture Company Registration Process in Malaysia

Joint Venture Company Registration Process in Malaysia

In every country, there are some certain ways of creating a joint venture company. Alike other countries, there are also some fixed rules for creating a joint venture company in Malaysia. Without following these certain pre-determined rules, companies are unable to introduce a company in Malaysia with joint venture business type. Investor’s establishment of a company limited by shares or a partnership is must for creating a joint venture company in Malaysia.

Some regulation of the creation of a joint venture in Malaysia, have recently been changed. Authorities have changed some of the rules that refer to the companies having foreign capital. Previously, if a company had foreign capital, the company limited by shares was not fully able to be owned by foreign owners.

But in the changed rules, if a company has foreign capital, the company limited by shares will be able to be owned solely by foreign owners. Just like this rules that I have mentioned, many other rules are there to follow if someone wants to start a joint venture company in Malaysia. The other rules are going to be described in later parts of the writing.

Do you know what Joint Venture in Malaysia is?

First of all, if anyone wants to start a joint venture business in Malaysia, they have to know what joint venture business is according to Malaysian authority.

In here, the association of two different companies working on the same project for a specific amount of time period is the requirement for a joint venture type of business. If anyone wants to join a new market in a new country, this type of company is the most useful one.

In this kind of company, the investors of the two associated companies decide important matters referring to the company’s operations and profit distribution. If the company reaches the goal for which it was incorporated, the partnership between the two companies can end. It is one of the important aspects of joint venture companies. In this case, the business can be closed down and investors can also sell the company.  

Joint Venture Registration Process in Malaysia

There are several ways for a businessman who wants to enter in Malaysian market. A company with 100% foreign ownership can be introduced into the Malaysian market by a foreign owner.

The other way for a businessman to enter the market is by setting up a partnership company in Malaysia. In this case, the local company will have at least 50% of the ownership of that whole company.

While registering, the company should have a paid-up capital of at least RM 350,000. The minimum authorized capital in this case should be RM 500,000.

Joint ventures in Malaysia can be started by a single foreign company in Malaysian market as per the new improvement of the business rules. Joint ventures can also be set up as a partnership between a Malaysian company and a foreign company. In this case, both of the companies should have a common business goal.

These are the basic requirements for registering as well as starting a joint venture company in Malaysian market. The other steps are as same as the other countries in Asia.

Related Articles:

7 Helpful Advice for new Business Founders in Malaysia

3 Things to Consider Before Starting a Small Business in Malaysia

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