5 Things You Need To Know Before Buying A Shelf Company
Shelf company is no difference from those newly registered company and all companies are subject to all provisions of the Companies Act 1965 in Malaysia.
There are 5 things you need to know before buying a shelf company:
1. At least 2 Directors
Every company shall have at least two directors, who each has his principal or only place of residence within Malaysia.
2. At least 2 Shareholders
Every company must have at least 2 shareholders (persons), or 1, in case of corporate shareholder.
3. Requirement to open Bank Account
Please verify with your banker whether you can be the cheque signatory of your company’s bank account.
Certain banks do not accept a foreign director who do not possess valid working permit/business visa as cheque signatory.
4. You cannot apply business visa using shelf company
All shelf companies are registered with paid-up capital of RM2 only and this has not complied with the requirements from Immigration Department in Malaysia where a paid-up capital of at least RM500,000 is required in a company.
5. You cannot increase paid-up capital if the company do not have bank account
The directors are required by the law to deposit the monies (capital) into the company’s bank account before the company can increase its paid-up capital.
