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Equity Policy for Malaysia Companies
In broad terms, Malaysian legislation typically does not impose restrictions on foreign ownership in the share capital of companies. However, in cases where specific licenses are necessary for operations, equity conditions or mandates for hiring a minimum number of local employees might be enforced. These measures are intended to enhance the participation of Bumiputera (Malaysians of Malay origin) in the broader economy.
Q&A - Incorporation of Thailand Private Limited Company
The name of Thailand company must end with the word “Limited”. Also, it cannot be identical/similar to any company name that already registered with the Ministry of Commerce. In general, foreigner participation in Thailand company is allowed up to a maximum of 49% capital shares. Otherwise, it will be treated as foreign investment company that the business activities is greatly limited by The Foreign Business Act.
Issuance of Preference Shares by Malaysia Companies
Company shares are a type of security that symbolizes the level of a shareholder’s ownership in a company. It is common for a company to issue various types of shares, each of which grants its holders certain types of rights. In Malaysian companies, the two most prevalent forms of shares issued to shareholders are ordinary shares and preference shares. Each type has its own set of features and privileges for the holders.
Q&A for Starting a Travel Agency in Malaysia
What are the general requirements for setting up a travel agency in Malaysia? What is the Travel & Tours Management Course (“TTMC”)? TTMC is a mandatory 2-days course for new travel and tour operators focusing on providing knowledge and skills related to the tourism and travel industry, including areas such as tourism management, travel agency operations, tour guiding, hospitality management, destination management, and related topics.
Declaration of Dividend by a Malaysia Company
Generally, companies are formed to make profits for its members. No express power is required in its constitution to distribute profits to its members. There is also no rule that all profits must be distributed. A payment of profits of a company to its members is called a dividend. A dividend is a share of profits in a company, i.e. a distribution of a company’s net profits which are payable to shareholders in the proportion to their shareholdings
Allotment of Shares by Malaysia Companies
Having an effective and reliable method of obtaining adequate capital for operations and expansion is a core business requirement for all companies. Whenever the company requires funds for a certain purpose, the allotment of shares is the most common strategy for obtaining a capital injection.
Foreign Equity Acquisition in Vietnam
Foreign investors may enter the Vietnam market through an equity acquisition of an existing Vietnamese enterprise (hereinafter referred to as “foreign equity acquisition”) in addition to setting up a foreign invested enterprise in Vietnam directly. Currently, Vietnam has not yet enacted any special laws or regulations on foreign equity acquisition.
Q&A Regarding Setting up a Restaurant in Malaysia
What are the popular locations for opening a restaurant in Malaysia? What type of company and minimum capital are required for foreigner to set up a restaurant in Malaysia? Besides the WRT License, what other licenses are required for opening a restaurant? What are the requirements of the restaurant’s signboard?
The Importance of Constitution of Malaysian Companies
The company’s Constitution is a legal document which sets out the objects and powers of a company and also governs internal affairs and management of the company. Under the Malaysian Companies Act 2016 (CA 2016), the M&A is replaced by Constitution. A company has the option of whether to have a Constitution as the CA 2016 has set out rights, powers, duties and obligations of company’s directors and shareholders which can be used in the absence of a Constitution.
Guide to Audit Exemption of Private Companies in Malaysia
Pursuant to Section 267(2) of the CA 2016, the Registrar shall have the power to exempt any private company from the requirement to appoint an auditor for each financial year of the company. Practice Directive No. 3/2017 issued by the Companies Commission of Malaysia (CCM) has set out the qualifying criteria for certain categories of private companies from having appoint an auditor in a financial year, i.e. audit exemption.