Discusses the legal requirements/options for joint venture/licensing in this market.
Last Published: 8/19/2019

Some exporters find it advantageous to establish their own subsidiary in Malaysia to directly handle sales, distribution, and service. While this provides more direct control, it requires a commitment of capital and the identification of suitable local joint venture partners. The selection of a joint venture partner is perhaps the single most important decision made by a potential investor in Malaysia.

All partnerships must be registered with the Companies Commission of Malaysia (CCM) under the Registration of Businesses Ordinance 1956. Partners are both jointly and separately liable for the debts and obligations of the partnership. Formal partnership deeds may be drawn up governing the rights and obligations of each partner, but this is not obligatory.

U.S. exporters interested in establishing a joint venture should contact the Malaysian Investment Development Authority (MIDA) for more information about other government policies that may affect contract arrangements within their specific industry. MIDA may also be able to assist with the identification of a suitable partner. Any firm intending to establish a local office should secure the services of a local attorney.
 

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