马来西亚工商资讯提供 Commerce and Industry of Malaysia

马来西亚工商资讯提供 Commerce and Industry of Malaysia The information provided for general informational purpose only. 所提供的信息仅供一般参考。

Why Use a Foreign Company as a Shareholder of a Malaysian Sdn Bhd? Holding Structure – Build a group structure and manag...
12/12/2025

Why Use a Foreign Company as a Shareholder of a Malaysian Sdn Bhd?

Holding Structure – Build a group structure and manage overseas assets.

Asset Protection – Adds an extra layer of legal protection to reduce personal risk.

Tax Planning – Enables cross-border tax optimisation and profit repatriation strategies.

Investor Confidence – More professional, attractive to foreign investors or venture capital (VC).

Privacy Protection – Public records show the foreign company instead of an individual.

Cross-Border Operations – Facilitates international operations and smoother fund flows.

M&A Convenience – Makes it easier to sell the entire business.
Corporate Image – International structure projects stronger professionalism.

https://Companyregistrationkualalumpur.wasap.my

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd? Enhancing Corporate Image & Profess...
12/12/2025

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd?

Enhancing Corporate Image & Professionalism (Brand & Professional Image)

Many entrepreneurs prefer their company to have a more international and professional image, such as:

• “Owned by a Singapore-based holding company”
• “Wholly owned by a Hong Kong parent company”

This can significantly strengthen:

• Negotiations
• Brand credibility
• Attraction of international clients
• Participation in large-scale projects

Overall, it enhances trust, professionalism, and global positioning.
https://Companyregistrationkualalumpur.wasap.my

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd? Ease of M&A Transactions If you plan...
12/12/2025

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd?

Ease of M&A Transactions

If you plan to sell your Malaysian business in the future:

• You only need to transfer the shares of the foreign holding company

• No need to change the directors or shareholders of the Malaysian Sdn Bhd

• No need to update bank accounts

• Avoids complicated local compliance procedures

This makes acquisition deals much simpler and more attractive to international buyers.
https://Companyregistrationkualalumpur.wasap.my

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd? Ease of Cross-Border Operations Fo...
12/12/2025

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd?

Ease of Cross-Border Operations

For example:
A parent company is based in China, Singapore, Hong Kong, Europe, etc.,
and Malaysia serves as a regional operations or distribution hub.

Using a foreign company as the shareholder allows directors and the management team to more smoothly:

• Move funds between different countries
• Set up bank accounts
• Sign group-level contracts
• Manage international supply chains

https://Companyregistrationkualalumpur.wasap.my

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd? Privacy Protection Using a foreign...
12/12/2025

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd?

Privacy Protection

Using a foreign company can help protect the identity of the actual ultimate beneficial owner (UBO).

Although Malaysia has implemented the UBO (Ultimate Beneficial Owner) reporting system:

• UBO information is not disclosed to the public
• It is submitted only to the company secretary and SSM
• Public records will show the foreign company, not individual names

This practice is common among high-net-worth individuals (HNWI) and international businesspeople.
https://Companyregistrationkualalumpur.wasap.my

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd? Asset Protection When a foreign co...
11/12/2025

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd?

Asset Protection

When a foreign company is used as the shareholder, assets can be separated from an individual’s personal name, making liability clearer.

Advantages:
• Limits personal risk
• In the event of legal disputes, the company—not the individual—bears the liability
• A multi-layer structure prevents assets from being easily pursued

This approach is especially popular in industries with higher operational risk (such as construction, import & export, engineering, manpower supply, and technology).

https://Companyregistrationkualalumpur.wasap.my

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd? Establishing a Higher-Level Holding...
11/12/2025

Why Do Some People Use a Foreign Company as the Shareholder of a Malaysian Sdn Bhd?

Establishing a Higher-Level Holding Structure

Many multinational corporations, entrepreneurs, or business groups set up a holding company overseas, which then holds the shares of a Malaysian Sdn Bhd.

The advantages of this approach include:

• Easier management of subsidiaries across multiple countries
• Centralized management of assets and profits
• A more professional and international corporate structure

https://Companyregistrationkualalumpur.wasap.my

When incorporating an Sdn Bhd company in Malaysia, you are required to prepare the following document: Residential Tenan...
11/12/2025

When incorporating an Sdn Bhd company in Malaysia, you are required to prepare the following document:

Residential Tenancy Agreement

Opening a Corporate Bank Account

A work visa is not required to open a corporate bank account in Malaysia. Currently, most banks allow corporate account opening without a work visa, but the following documents must be provided:

Residential Tenancy Agreement
Business Premise Tenancy Agreement

Both tenancy agreements are mandatory for bank account opening.

The processing and approval time for a corporate bank account in Malaysia is typically 4 to 5 weeks.
https://Companyregistrationkualalumpur.wasap.my

Consumer Protection (Electronic Trade Transactions) Regulations 2012 (ETTR 2012) Purpose:To regulate online sellers and...
10/12/2025

Consumer Protection (Electronic Trade Transactions) Regulations 2012 (ETTR 2012)

Purpose:
To regulate online sellers and ensure transparency in electronic trade transactions.

Key Highlights:
Online sellers must clearly display:

• Business name
• Registration number (if applicable)
• Contact information
• Product descriptions
• Full price (including additional charges)
• Terms and conditions, refund policies
• Delivery timelines
• Payment methods

Other requirements include:

• Providing a proper acknowledgment for every order.
• Maintaining transaction records for at least 2 years.
• Prohibiting online fraud and misleading information.

Why it matters for businesses:
Compliance builds trust and credibility, reduces risks of disputes, and avoids penalties by enforcement agencies.

https://Companyregistrationkualalumpur.wasap.my

Consumer Protection Act 1999 (CPA 1999) Purpose: To protect consumers from unfair trade practices, misleading informat...
10/12/2025

Consumer Protection Act 1999 (CPA 1999)

Purpose:
To protect consumers from unfair trade practices, misleading information, and defective products.

Key Highlights:

• Applies to goods and services purchased for personal use, including online purchases.
• Prohibits false advertising, deceptive claims, and unfair sales practices.
• Provides consumers with rights for refunds, replacements, and claims for defective products.
• Introduces enforcement actions against sellers who breach consumer rights.

Why it matters for businesses:
All businesses—online and offline—must ensure truthful marketing, clear pricing, and fair business conduct.

https://Companyregistrationkualalumpur.wasap.my

1. Electronic Commerce Act 2006 (ECA 2006) Purpose:To legally recognize and regulate electronic messages, digital signat...
10/12/2025

1. Electronic Commerce Act 2006 (ECA 2006)

Purpose:
To legally recognize and regulate electronic messages, digital signatures, and online contracts.

Key Highlights:

• Provides legal validity to electronic agreements, records, and signatures.

• Ensures that online transactions are treated the same as physical, paper-based transactions.

• Allows businesses to issue invoices, contracts, and notices electronically.

• Establishes the reliability and admissibility of electronic communications in legal proceedings.

Why it matters for businesses:
This law gives legal certainty to e-commerce operations and protects businesses that rely on digital documentation.

https://Companyregistrationkualalumpur.wasap.my

Malaysia eCommerce Laws Malaysia has established several regulations governing e-commerce activities, including: • Ele...
09/12/2025

Malaysia eCommerce Laws

Malaysia has established several regulations governing e-commerce activities, including:

• Electronic Commerce Act 2006
• Consumer Protection Act 1999
• Consumer Protection (Electronic Trade Transactions) Regulations 2012

https://Companyregistrationkualalumpur.wasap.my

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