Malaysia, strategically located in Southeast Asia, has long been an attractive destination for foreign investment due to its stable political environment, robust economic growth, and investor-friendly policies. This article outlines the key legal considerations and procedural steps for foreign investors planning to establish a company or manufacturing operations in Malaysia.
While the Companies Act 2016 (CA 2016) provides a fundamental legal framework for companies in Malaysia, a shareholder agreement serves as a crucial complement, offering a tailored and comprehensive approach to govern the relationship between shareholders and the internal management of the company. This is particularly important for SMEs and startups where personal relationships often intertwine with business matters.
While the allure of venturing into business with a trusted friend or colleague can be strong, relying solely on goodwill and verbal agreements can be a recipe for disaster. In Malaysia, a well-drafted partnership agreement is not just a legal formality, but a crucial tool for establishing a strong foundation for your business, safeguarding the interests of all partners, and ensuring smooth sailing even when unexpected storms arise.
In Malaysia, writing a will is an essential step in ensuring that an individual’s assets and estate are distributed according to their wishes after their death. Unfortunately, many Malaysians still underestimate the importance of estate planning, often leading to unintended consequences for their families. The importance of drafting a will is highlighted by the consequences of dying intestate—without a will—where the estate is distributed according to statutory rules that may not align with the deceased’s intentions. This article will discuss the key reasons for drafting a will in Malaysia, supported by references from the Malaysian Bar Council.
