Malaysia

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Operating a Business in Malaysia

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Private Berhad is a Private Limited Company. No minimum capital.	Maximum 2 to 50 shareholders. Liability is limited to the nominal value of the subscribed shares.	Company name and statutes registration: MYR 130; Registration to the Commission of Enterprises in Malaysia: MYR 3,000; Obtaining certificates: MYR 350.
Public Berhad is a Public Limited Company. MYR 2 million	Minimum 2. Liability is limited to the nominal value of subscribed shares.	Company name and statutes registration: MYR 130; Registration to the Commission of Enterprises in Malaysia: MYR 3,000; Obtaining certificates: MYR 350.
General Partnership No minimum	Maximum 2 to 50 partners. Partners' liability is joint and several.	Company name and statutes registration: MYR 130; Registration to the Commission of Enterprises in Malaysia: MYR 3,000; Obtaining certificates: MYR 350.

Business setup procedures: Companies which wish to do business in Malaysia must register with the Companies Division of the SSM in accordance with the 1956 Law on company registration. To form a company, the SSM must check if the planned name of the future company is available. Foreign companies must form a local company or register a branch in Malaysia to be able to do business. Although it is encouraged by the government, recourse to a license purely and simply is uncommon in Malaysia. For further details on the formalities for forming a company, visit the Guide of the SSM.
The competent organization: The Companies Commission of Malaysia (SSM) has the power, as the representative of the Ministry of Domestic Trade and Consumer Affairs, to register, form and strike off Malaysian companies and enterprises. Its main functions are administration and implementation of the applicable laws, registering of companies and enterprises, keeping official company and enterprise dossiers, and making company directors aware of ethical rules. The SSM is also a watchdog organization.

Legal weekly duration: 48 hours a week.
Retirement age: There is no legal age for retirement in the private sector even if the EPF (Employment Provident Fund) considers people are eligible from 55 for men and 50 for women.
Working contracts: Called "Contract of Service" or "Contract of Employment", the contract is deemed to exist as soon as the employee starts to work. There are fixed-term contracts and open-ended contracts.

Minimum wage: No legally mandated national minimum wage
Average wage: USD 5,751 per year (women)
USD 15,861 per year (men)
Social contributions: Social security contributions paid by employers: 1.5 %.
Social security contributions paid by employees: 0.5 %.

Social dialogue and involvement of social partners: There are two national organizations: the Malaysian Trade Union Corporation (MTUC) and the Congress of Unions of Employees in the Public and Civil Service (CUEPACS).
Unions: National Union of Journalists Malaysia
Unionization rate: 9.5% of workers are unionized.
Labor regulation bodies: Ministry of Human Resources

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