Increase of Share Capital
You can increase the paid up capital whenever needed after registering the company in Malaysia. If you need to increase the paid up capital, please click the following button and place order online.
Frequently Asked Question
What is the minimum paid up capital requirement for registering a company in Malaysia?
Pursuant to Section 8 of the Companies Act 2016 (“CA 2016”), the paid-up capital of a company is RM1.00 if the company is incorporated as a private company. However, pursuant to Regulation 9 of the Companies (Registration) Regulations 2017 (“CRR 2017”), where a domestic company does not have a share capital and objects to its registration on that ground, the Registrar shall register it as a private limited liability company without share capital.
What is the required share capital of a company for employing foreign workers?
According to the Company Act of 2016 in Malaysia, the minimum share capital for a company employing foreign workers varies depending on nationality of equity holders. If all shareholders are local, the minimum required paid up capital is RM 250,000.
If a company is formed in a joint-venture mode between local and foreigners, the minimum required paid up capital is RM 350,000, while the minimum paid-up capital has to be RM500,000 if all shareholders are foreigners. Therefore, it is important to note that if your company plans on hiring any foreigners, you will need to make sure that you have the necessary initial investment to do so.
What is the required share capital of a company for applying for a CIDB License?
The minimum paid-up capital of a company for applying CIDB licenses depends on the grade of license. For example, the minimum paid-up capital for applying for a CIDB license, Grade-5 is RM 500,000, while application of Grade-7 CIDB licenses requires minimum paid-up capital is RM 750,000. Therefore, look at the requirement of the CIDB license of how much paid-up capital is required for the application.
How much does it cost to increase the share capital of a Malaysian company?
There is no specific fee prescribed under the Companies Act 2016 to increase the share capital of a Malaysian company. However, companies are required to pay stamp duty on the instrument affecting the increase in share capital. The stamp duty rate is 0.5% of the total amount of share capital increased, subject to a minimum of RM50 and a maximum of RM5,000. In addition, companies are also required to pay legal fees incurred in connection with the increase in share capital.