Benefits of Malaysia Company

Benefits of Malaysia Company

Benefits of Malaysia Company

Introduction To Malaysia Law

Benefits of Malaysia Company

Vibrant Business Environment

Malaysia’s market-oriented economy, supportive government policies and a large local business community that is ready to do business with international corporations have made Malaysia a highly competitive manufacturing and export base.

A market-oriented economy and government policies that provide businesses with the opportunity for growth and profits have made Malaysia a highly competitive manufacturing and export base. Malaysia’s rapid move towards the global economy allows companies to do business in an environment that is geared towards information technology.

One of Malaysia’s major pull factors is its large pool of young, educated and trainable workforce. Many of Malaysia’s university graduates are trained overseas in fields such as engineering, and accountancy, allowing them to adapt easily to an international corporate environment. English is widely used in Malaysia, especially in business thus facilitating the investor’s communication with local personnel and suppliers.

The country’s legal and accounting practices derived from the British system are familiar to most international companies.In addition, Malaysia retained its position as the third best destination in the world for outsourcing activities, after India and China, according to A.T. Kearney’s 2007 Global Services Location Index (GLSI).

Chambers of Commerce and Industry

Newcomers to Malaysia’s business scene will feel at home with the presence of the various chambers of commerce and trade associations made up of corporations from different countries. These oganisations are invaluable sources for general business information, advice and assistance, and complement the role of government agencies such as MIDA.

The major organisations, are the Malaysian International Chamber of Commerce and Industry (MICCI), Federation of Malaysian Manufacturers (FMM), the Japanese Chamber of Trade and Industry (JACTIM), and American-Malaysian Chamber of Commerce (AMCHAM), as well as several trade associations such as the Malaysian-American Electronics Industry (MAEI) Group.

Developed Financial Facilities

A well-developed financial and banking sector has enhanced Malaysia’s position as a dynamic export base in Asia. Sophisticated financial facilities are available through domestic and foreign commercial banks and their nationwide network of branches. There are also representative offices of several foreign banks that wish to establish a presence in the region. Besides the commercial banks, investment banks, and Islamic banks are major sources of credit to the industrial sector in Malaysia.

Exporters in Malaysia can also take advantage of the credit facilities offered by the Export-Import Bank of Malaysia Berhad (Exim Bank), while another institution, Malaysia Export Credit Insurance Berhad (MECIB), offers export insurance cover and guarantees. To complement Malaysia’s financial system, the government has established the Labuan International Business and Financial Centre (IBFC) on the island of Labuan located off the north-west coast of Borneo.

Companies in Labuan enjoy minimal taxes as well as confidentiality. To-date, more than 2,700 offshore companies have commence operations in Labuan. These include offshore banks, trust companies, and insurance and insurance related companies. The Labuan Offshore Financial Services Authority (LOFSA) is a one-stop body that spearheads and coordinates the development of IBFC.

Local Vendors

Over the last three decades, Malaysia has developed a large pool of ancillary and supporting industries that was initiated with the entry of MNCs into the country. These MNCs, especially those which pursued active vendor development programmes, have contributed greatly towards the development of local small-and-medium scale industries (SMIs) that are highly competent and competitive with some even penetrating export markets.

Joint-Venture Partners in Malaysia

Most large Malaysian companies have been involved in trade and industry for generations, and many have excelled in international and regional markets. Thus, foreign investors seeking joint-venture partners in Malaysia will be able to select from a wide range of companies to find one that matches their needs. MIDA also assists foreign investors in business match-making to start joint-venture projects or to undertake contract manufacturing.

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Introduction To Malaysia Law

1. Introduction to Malaysia Law

The law of Malaysia is mainly based on the common law legal system. This was a direct result of the colonization of Malaya, Sarawak, and North Borneo by Britain betweens early 1800s to 1960s. The supreme law of the land—the Constitution of Malaysia—sets out the legal framework and rights of Malaysian citizens. Federal laws enacted by the Parliament of Malaysia applied throughout the country. There are also state laws enacted by the State Legislative Assemblies which applies in the particular state. The constitution of Malaysia also provides for a unique dual justice system—the secular laws (criminal and civil) and Sharia Laws

2. Malaysia Law Dual justice system

The dual system of law is provided in Article 121(1A) of the Constitution of Malaysia. Article 3 also provides that Islamic law is a state law matter with the exception for the Federal Territories of Malaysia.
Islamic law refers to the Sharia Law, and in Malaysia it is known and spelled as Syariah. The court is known as the Syariah Court, it only applies to Muslims. With regards to civil law, the Syariah courts has jurisdiction in personal law matters, for example marriage, inheritance, and apostasy. In some states there are Sharia criminal laws, for example there is the Kelantan Syariah Criminal Code Enactment 1993. Their jurisdiction is however limited to imposing fines for an amount not more than RM 3000, and imprisonment to not more than 6 months.

3. Malaysia Federal Law and State Law

Federal laws are made by legislators (members of Parliament and senators) sitting in the Parliament of Malaysia and applies nationwide. Federal laws are known as Acts (of Parliament).
State laws are made by assemblymen seating in the State Legislative Assembly (Dewan Undangan Negeri) and only applies in the particular state. State laws are often referred to as enactments or ordinances. The Constitution Article 75 states that a federal law shall prevail over any inconsistent state laws, including Sharia laws.

4. The East Malaysia Special Law

The states of Sabah and Sarawak joined Malaya and Singapore to form Malaysia in 1963, and there are special laws applicable only to these two states. An important area in this regard is the immigration law and land law.

5. Malaysia Common law

The laws of Malaysia can be divided into two types of laws—written law and unwritten law. Written laws are laws which have been enacted in the constitution or in legislations. Unwritten laws are laws which are not contained in any statutes and can be found in case decisions. This is known as the common law or case law.
The application of English law or common law is specified in the statutes. Section 5 of the Criminal Procedure Code states that English law shall be applied in cases where no specific legislation has been enacted. Similarly, in the context of civil law, Sections 3 and 5 of the Civil Law Act allows for the application of English common law, equity rules, and statutes in Malaysian civil cases where no specific laws have been made.
The principle of stare decisis also applies in Malaysian law. This means that any decisions by a court higher in the hierarchy will be binding upon the lower courts.

6. Rule of Law

The rule of law is the essential doctrine of the British Constitution. It is not written code of rules but the general principle implicit in the common law which the courts will apply, unless some statute can be quoted modifying the application. The rule of law cover 3 essential aspects.:-
a) No person can be punished except for a definite breach of law, established in the ordinary law courts of the land
b) No person is above the law and everyone must bear the legal consequences of his own act. Equality before the law.
c) There is an absence in the UK of any special body of courts to try cases where the citizens is in conflict with the government unlike in France where litigation between citizens and state officials is dealt with by special administrative courts.
It is often stated that it is from the principle of the rule of law, all forms of liberty, person’s liberty. Liberty of speech and freedom of press are derived.

7. Classification of Law

Law can be classified into various areas. Generally speaking it can be categorized into three main areas.
a) Public Law and Private Law
b) Substantive Law and Procedural Law
c) Private International and Public International Law

7.1 Public Law and Private Law

Public law regulates the relationship between the citizen (an individual or group of people) and the State.
Constitutional Law – defines the structure of the principal organs of government and their relationship to each other, and determined their principal functions and the rights of individual under that government.
Administrative Law – is defined as that body of legal principle which concerns the rights and duties arising from the impact upon the individual of the actual functioning of the executive instrument of the government. In synopsis we can terms it as the law that regulates the duties and exercise of powers by administrative authorities.
Criminal Law – deals with acts or omissions which are offences against the State and for which the offender is liable to be tried and if found guilty, will be punished according to the law. Crime is defined as of disobedience of the law forbidden under pain of punishment. The punishment for crime ranges from death or imprisonment to a money penalty or absolute discharge.
Private law deals with the relation between one citizen and another citizen. It is also known as Civil law. It includes contract, Family Law, Tort, Land Law and commercial law in general. Legal action may be commenced or initiated by individuals seeking for damages or compensation.

7.2 Substantive Law and Procedural Law

Substantive law is the statutory or written law that governs rights and obligations of those who are subject to it. Substantive law defines the legal relationship of people with other people or between them and the state. Substantive law stands in contrast to procedural law, which comprises the rules by which a court hears and determines what happens in civil or criminal proceedings the body of rules of law in the above branches.
Substantive law defines crimes and punishments (in the criminal law) as well as civil rights and responsibilities in civil law. It is codified in legislated statutes or can be enacted through the initiative process Thus, murder is common rule offence. Bigamy is a statutory offence and Passing off is a tort at common law.
Procedural law deals with the method and means by which substantive law is made and administered. It lays down the rules governing the manner in which a right is enforced under civil law, or a crime prosecuted under the criminal law. A legal action is started by a writ in civil cases and by summons in criminal cases.

7.3 International Law

Includes Private and Public International Law. Public international law deals with relationship between states. Private International law is concerned with the application of various national laws of the facts of a particular case involving two or more countries.

8. Sources Of Law

The main sources of law in Malaysia can be categories as follows;
a) the Federal Constitution
b) the 13 Constitution of the States comprising the Federation
c) Federal law made by Parliament
d) State laws made by State Assemblies
e) Federal and State Subsidiary Legislation
f)  Principles of English Law
g) Judicial Precedent
h) Islamic Law

8.1 The Federal Constitution

Malaysia has a written constitution unlike the United Kingdom. The Federal Constitution is the supreme law of the land. Generally, any law which is inconsistent with the Federal Constitution is invalid.  The Malaysian Parliament functions under a written constitution and is governed by it. Its law making power is limited by the provisions in the constitution.

8.2 The State Constitution

The 13 States of Malaysia have individual constitutions, which provide for a single chamber Legislative Assembly in each state. A Menteri Besar or a Chief Minister heads the government. (In the Malay States a cabinet known as the Executive Council assists the Menteri Besar) In Sabah & Sarawak, members of the Executive Council are known as State Ministers.

8.3 Legislation

It refers to laws made by a person or body, which has power to make law. In Malaysia, Parliament and Legislative Assemblies have powers to enact laws in their respective areas. Laws made by Parliament may extend to the whole country. However, laws enacted by a State Assembly only apply to that particular state only.
a) Act – Federal Law made by Parliament
b) Enactment – State Law made by Legislative Assemblies
c) Ordinance – Law made by YDPA(King of Malaysia) during Proclamation of an emergency when Parliament is not sitting concurrently.

8.4 English Law

The supremacy of English Law remains in Malaysia even after independence. The English Law is adopted so far as they were suitable to local conditions. Many of the local laws especially those affecting trade, commerce and banking were patterned on English Models (or in some instance other colonial laws) e.g. Section 3 and 5 of the Civil Law Act 1956 provide that English law relating to contract is applicable in Malaysia in relation to areas not covered by our legislation or our case law. Our courts have also tended to look towards the English Law to aid them in the interpretation of the Contract act.

8.5 Subsidiary Legislation / Delegated Legislation

Also known as delegated legislation. A statute will confer power on an authority for it to enact rules and regulation. An example of delegated legislation is the parking by laws enacted by various councils under powers conferred on them by the State Local Government Enactments.

8.6 The Common Law

Refers to law laid down by judges sitting in the Superior Courts as distinct from statute law enacted by the legislative.- Judge made law. This system was inherited from England.

8.7 Syariah Law

Is the body of Islamic law. The term means “way” or “path”; it is the legal framework within which the public and some private aspects of life are regulated for those living in a legal system based on Muslim principles of jurisprudence. Applicable to Muslims only and administered in the Syariah Courts. The courts possess civil jurisdiction over offences by Muslim against the religion.

8.8 The Doctrine Of Stare Decisis ET Non Quieta Movere / Binding Precedent

The doctrine of Stare Decisis is a Latin legal term, used in common law to express the notion that prior court decisions must be recognized as precedents, according to case law. More fully, the legal term is “stare decisis et non quieta movere” meaning “stand by decisions and do not move that which is quiet” (the phrase “quieta non movere” is itself a famous maxim akin to “let sleeping dogs lie”).
A precedent is a statement made of the law by a Judge in deciding a case. The doctrine, states that within the hierarchy of the courts a decision by a higher court will be binding on those lower than it. This means that when judges try a case they will check to see if a similar case has come before a court previously, and if there was a precedent set by an equal or higher court, then the judge should follow that precedent. If there is a precedent set in a lower court, the judge does not have to follow it, but may consider it. The Federal Court however does not have to follow its own precedents.
Most importantly precedents can be overruled, by a subsequent decision by a higher court or Act of Parliament, Judicial ruling is retrospective, whereas Act’s of Parliament are always Prospective unless stated.
These are the previous decision decided in the previous case, so far as its ratio decidendi is concerned, relevant to the determination of an issue of law in the case in question, and that the prior court’s decisions are authoritative for his court, it is a court which is superior to his hierarchy.

9. The Legislative Process In The Malaysian Parliament

The Bill introduced to parliament may be classified as:
a) Private Bill’s
b) Private Member Bills
c) Hybrid Bills
d) Government Bills
The Bill is normally presented by the Minister to the Parliament. A Bill introduced in either House in accordance with Parliamentary procedure as prescribed by the Standing Orders usually goes through 4 stages:
1. The First Reading
2. The Second Reading
3. The Committee Stage
4. The Third Reading

9.1 Summary How A Bill Become A Law

(a) First Reading
When a bill is first introduced in one of the two houses, only its title is actually read. After the Bill is passed at this stage, its text is printed and distributed.
(b) Second Reading
Members debate the Bill. If accepted, it is passed on for consideration by a committee of the house.
(c) A Committee of The House
Considers the Bill in detail and may amend any part of it. The committee then submits a report on the Bill to the house. If the report is approved, the Bills goes on to a third reading in the house.
(d) Third Reading
Debate takes place and amendments may be put to a vote. The house then either passes or defeats the Bills.
(e) Other House
When a Bill has passed one house, it is send to other house, where it follows a similar pattern. If the second house amend the Bill, the Bill must be returned to the first house for it approval
(f) Royal Assent
When the Bill has passed both house with accordance with article 68, it is sent to Yang di- Pertuan Agong For the Royal Assent. The bill becomes a law upon publication.

10. Jurisdiction of the Courts

As a general rule civil and criminal courts are open to public. When an accused person has committed a criminal offence and does not plead guilty, he will be tried in a court of competent jurisdiction. The court which administer civil and criminal justice are those constituted under the constitution, or the Courts Judicature Act 1964 or by Subordinate Courts Act 1948 or by any other law presently in force.

10.1 Penghulu’s Court

Trail Jurisdiction.
Section 95 Subordinates Court Act 1948 provides that :
The Penghulu’s court can try minor offences listed in the ‘Surat Kuasa’ and punishable with a fine not exceeding RM 25/-. The Offender must be an Asian.
Sentencing Jurisdiction
Section 96 Subordinate Courts Act 1948 The penghulu can impose fine not exceeding RM25/-

10.2 2nd Class Magistrate

Trail Jurisdiction.
Section 88 Subordinate Courts Act 1948 2nd Class Magistrate can try offences punishable with:
a) Imprisonment not exceeding 6 months; or
b) A fine only
Sentencing Jurisdiction
Section 89 Subordinate Courts Act 1948 2nd Class Magistrate can punish an offender with:
a) Imprisonment not exceeding 6 months, or
b) A fine not exceeding RM 1000; or
c) Or both
Section 92 Subordinate Courts Act 1948 – monetary jurisdiction up to RM 3000.00

10.3 1st Class Magistrate

Trail Jurisdiction
Section 85 Subordinate Courts Act 1948 – 1st Class Magistrate can try offences:
a) Punishable with imprisonment not exceeding 10 years, or
b) Punishable with fine only or
c) Under Section 392 Penal Code i.e robbery on the highway between sunset and sunrise punishable with a maximum of 14 years imprisonment, or
d) Under Section 457 Penal Code i.e. house breaking at night to commit theft punishable with a maximum of 14 years imprisonment.
Section 83 Subordinate Courts Act 1948 – 1st Class Magistrate can:-
a) Issue warrants, summons or other processes of the court;
b) Make orders relating to adjournments, remand, bail and transfer of the case to the sessions court;
Section 9 Criminal Procedure Code gives power and authority to the Magistrate:-
a) To hear criminal trials
b) To issue warrants, summons or other processes of the court
c) Make orders relating to adjournments, remand, bail and transfer of the case to the sessions court
d) To hold inquiries of death.
Sentencing jurisdiction:
Section 87 (1) Subordinate Courts Act 1948 1st Class Magistrate can punish the offender with:
a) Imprisonment not exceeding 5 years; or
b) Fine not exceeding RM 10,000/-; or
c) Whipping up to maximum 12 strokes
d) A combination of (a)-(c)
e) In a civil matter the Magistrate can fine up RM 25,000/-
Section 90 Subordinate Courts Act 1948 – Monetary jurisdiction up to RM 25,000.00

10.4 Sessions Court

Commercial Secretary Services
We help corporate to Opening Bank account, Company search ,Attendance of Annual General Meetings, Embassy notarization and legalization, Change of Directors, Shareholders, Company Name, Paid-up Capital, etc. Also provide Virtual Office with company register address.
Corporate Accounting
Company Accounting services include Corporate tax advisory and planning, Financial Planning, Book keeping & Accounting, Audit and Budgetary Report.
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Protect your trademark by register it. We provide International trademark registration, Industrial Design registration and Patent.
HR Services
We help foreigner to apply Work Permit or any visa assistance, provides Training and development, also international Payroll and management system
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A complete Risk Management planning by global Legal Advisory, Corporate Counseling and Business management planning
Business Planning
We help you to do Company structure advisory, Project planning and Business Solution
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For international investor, we provide you with Investment Planning, Foreign Investment Guide, Specific Market Research and Pre- IPO
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Promote your brand online. We provide Website design & development services, Search Engine Optimize (SEO), Online Business to Business (B2B) trading, Online Advertisement, Online Search Engine and specific Software Design
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We help in prepare document for Letter of Credit (LC). Provides Hong Kong based Logistic and warehousing, Local & international goods transfer and Malaysia Certificate of Origin.
2. Commercial Secretary Services
We help corporate to Opening Bank account, Company search ,Attendance of Annual General Meetings, Embassy notarization and legalization, Change of Directors, Shareholders, Company Name, Paid-up Capital, etc. Also provide Virtual Office with company register address.
Trail Jurisdiction
Section 64 Subordinate Courts Act 1948 A Sessions court can try any offences except those punishable with death
Sentencing Jurisdiction
Section 64 Subordinate Courts Act 1948 can pas any sentence except death
a) Section 65(1)(a) Subordinate Courts Act 1948 – Unlimited monetary jurisdiction in respect of motor vehicle accidents and landlord and tenants dispute and distress.
b) Section 65(1)(b) Subordinate Courts Act 1948 – On other matters monetary jurisdiction up to RM250,000.00
c) Section 66(1) Subordinate Courts Act 1948 – This Court may try matter even if a counter claim exceeds Plaintiff’s claim but this court will not give judgement in excess of the monetary jurisdiction limit .
d) Section 66(2) Subordinate Courts Act 1948. The High Court has the power to or make an order the matter to be transferred to the High Court.

10.5 High Court

Trial Jurisdiction
Section 22 Court Judicature Act 1964 – a High Court can try any offences and offences under Chapter VI of the Penal Court and under any written law
Court may pass any sentence allowed by law including death.
The High Court has no monetary limits and can try any case with any amount of money. The High court can try all matters except which is expressly excluded by the Federal Constitution.