Purchasing a shelf company in Malaysia might be your best option if you are in urgent need of a company and cannot afford to go through the whole registration process that, in some cases, can take up to one to two weeks, or if you require a company that is not newly incorporated.
If you are considering purchasing one, here are the important things you will need to know when purchasing a shelf company in Malaysia.
What Exactly Is A Malaysian Shelf Company?
A shelf company is a pre-made company that can be transferred to new owners instantly and is ready to trade because the Suruhanjaya Syarikat Malaysia (SSM) has already granted the company Incorporation Certificate.
They are especially useful in cases when a new organization is required for trade immediately, and the owners cannot afford to wait the standard time of around 5 days to establish a new company.
Shelf companies are usually dormant, have no corporate bank account, and have never launched any trading activity. Thus they have no outstanding liabilities.
Is Malaysia A Good Place For Business And Investments?
Malaysia’s commercial sector is enticing to overseas businesses as it provides a large market and several chances.
Malaysia is regarded as the world’s sixth most accessible country for business for various factors, including its strategic geographic position, economic and political stability, streamlined business, talented workforce, several tempting government incentives, and a liberalized market.
Friendly business policies and a streamlined legal structure instill confidence in foreign businesses looking to invest in Malaysia.
Benefits Of Purchasing A Readymade Malaysian Shelf Company
Avoiding the registration procedure
A shelf company, also known as a ready-made company, is a legal organization already formed in accordance with the usual incorporation procedure. This implies that the company’s buyers will not have to cope with the incorporation phase.
Applicable for all industries
In Malaysia, a shelf company is classified as a ‘General Trading’ firm, which implies it may be utilized for a wide range of business sectors and economic activities. Certain operations may necessitate the investors’ application for a separate business license.
Swift purchase process
The off-the-shelf firm can be acquired quickly. After completing the transfer of ownership of the business’s shares and paying the amount demanded the sale of the firm, the purchasers can become the new company’s shareholders in 24 hours.
Ease of mind
The shelf company is a legal organization with no trading activity records, which means the investor has the assurance that the firm has no debts or other legal or financial concerns.
Appropriate legal entity
The majority of the shelf companies are formed as limited liability companies that are also known as Sdn Bhd, This legal structure is appropriate for small and medium-sized businesses.
What Are The Characteristics Of A Malaysian Shelf Company?
- All of these shelf companies in Malaysia are already SSM-registered.
- Shelf Companies are registered for “General Trading” and can conduct any form of business as long as it does not violate any laws or regulations. Certain sorts of enterprises, however, required permissions, licenses, or permits from the appropriate government authorities or organizations.
- All ready-made shelf companies are inactive, do not have a bank account, and have never conducted any commercial activity, thus, they have no obligations.
- All of these shelf Companies are available at any time and in any Malaysia state. You will be the legal owner of the shelf business within 24 hours of signing and executing all paperwork. You will not have to go through the entire new company registration procedure, which generally takes 10-11 working days.
- You may customize or amend the company name, business activity, and share capital post the company transfer as per your preference.
What Is The Procedure For Purchasing A Malaysian Shelf Company?
- A summary of the procedure for purchasing a Malaysian shelf company can be seen below.
- An arrangement for you to take over the Company’s board of directors following the resignation of the existing company directors. You will be then appointed as the company’s new director.
- The existing shareholder’s ordinary share will be transferred to you.
- Relin Consultant’s Malaysia company secretary will lodge all essential paperwork to the SSM once all applicable documents have been signed.
- A copy of the letter of indemnity signed by the former company’s directors, indicating that the company was dormant, had no obligations, and had not begun any operations, will be provided to the client.
- Any further changes to the company name, corporate structure, director, and share capital will be lodged to SSM.
Reach out to us at firstname.lastname@example.org if you require assistance to purchase a shelf company in Malaysia.
Who Is Permitted To Purchase A Malaysian Shelf Company?
Local and foreign entrepreneurs who wish to do business in Malaysia can acquire ready-made firms and begin operations immediately without the need for formation.
Is it possible for a foreigner to buy a shelf company in Malaysia?
Yes, foreigners are allowed to buy a shelf company. After the acquisition, all the shares of the company will be transferred to the foreign investor, who will be the legal owner of the company.
Are there any risks or concerns involved with purchasing a shelf company in Malaysia?
Minimum risks are associated with a ready-made corporation in Malaysia. Such entities do not engage in any activity and so do not have any past obligations or liabilities.
However, if you feel it would give you greater confidence before making a purchase, you might request corporate due diligence and perform certain verifications. A shelf company verification report will indicate if the firm has or has had activity, tax concerns, or other unfulfilled duties.
What is the cost of purchasing a shelf company in Malaysia?
There is no standard cost for the purchase of a shelf company in Malaysia. It will depend on the longevity of the shelf company itself and the purchase fees.
Upon purchasing a Malaysian shelf company, will I be able to appoint a new company director?
Yes, you may appoint a new company director after you have purchased a Malaysian shelf company.