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Differences Between Malaysia and Labuan Companies
When considering the establishment of a business in Malaysia, entrepreneurs often have to choose between setting up a company on the Malaysia or in Labuan. Both jurisdictions have their own distinct characteristics, advantages, and requirements, which can significantly impact business operations.
Indemnity and Insurance for Officers and Auditors of Malaysian Companies
In Malaysia, corporate governance places significant emphasis on the protection and accountability of company officers and auditors. These individuals often face personal risks, including potential liabilities arising from legal proceedings or claims brought against them in the course of their duties. To mitigate this risk, companies can offer indemnity and insurance, ensuring that officers and auditors are not left personally liable for honest mistakes.
Comparison of JSC and LLC in Vietnam
Joint stock companies (JSC) and limited liability companies (LLC) are two common types of companies in Vietnam. The main differences between JSC and LLC are as follows:Advantages of a JSC: A JSC can issue shares and be listed on the Vietnam stock exchange. It generally has higher reputation and financing capabilities, making it more suitable for large businesses or corporate groups.
Loan to Directors of Malaysia Companies
Loans to directors in Malaysia are primarily governed by the CA 2016, which is the principal legislation that regulates companies in the country. Specific provisions in the CA 2016 address the issue of financial transactions between the company and its directors, including loans, advances, and guarantees.
Capital Reduction for Malaysian Companies
In Malaysia, a capital reduction must be approved by a special resolution via either confirmation by the Court under Section 116 of the CA 2016 or a solvency statement under Section 117 of the CA 2016. However, companies must first ensure that their Constitution allows for capital reduction. If such authority is not present, amendment to its Constitution must first be made.
Malaysia Private Company vs Branch Office vs Representative Office
When expanding business operations in Malaysia, companies often face the decision of choosing the most suitable structure for their activities. The primary options for foreign investors in Malaysia are establishing a private company, a branch office, or a representative office. Each has distinct characteristics, advantages, and regulatory requirements. This article explores these three options to help businesses make informed decisions.
Periodic Investment Reporting Requirements for Vietnam FIEs
Foreign invested enterprises (FIEs) registered in Vietnam are required to submit reports on investment activities to the relevant investment registration authorities on periodic basis in accordance with the Law on Investment of Vietnam and other laws and regulations.
Deregistration of Foreign Invested Company in Vietnam
A foreign invested company shall be dissolved under the following circumstances:The operation period specified in the company's charter expires without a decision on extension;The dissolution is decided by the shareholders of the company;The company fails to maintain statutory minimum number of members for six consecutive months without conversion;
Striking Off vs Winding Up of Malaysian Companies
A company may undergo dissolution at the hands of the Registrar of the Companies Commission of Malaysia ("CCM") or its various stakeholders, which may include directors, shareholders, creditors, or liquidators. This dissolution can occur for a variety of prevalent reasons, such as lack of business activities
Board Meetings of Malaysia Companies
Companies in Malaysia conduct meetings to discuss and decide on matters that require a decision. The types of meetings that may be held by a company including general meeting, board meeting, creditors’ meeting, management meeting etc. Amongst all, the most commonly occurring meeting for a Malaysia company is the Board of Directors meeting.