KUALA LUMPUR: The Companies Act 2016, which replaces its over 50-year-old predecessor, will ease the cost of doing business in the country, especially for small and medium enterprises (SMEs).
Domestic Trade, Co-operatives and Consumerism minister Datuk Seri Hamzah Zainudin said the new Act, which came into effect on Jan 31, would also help to ease a number of regulations.
“The ease of doing business is something that’s very important in this country,” he said while launching the Companies Act Awareness programme held at the Companies Commission of Malaysia (SSM) headquarters here yesterday.
Setting up a company is easier under the new Act as there is no requirement for companies to have a memorandum and articles of association.
It also does not compel business owners to get a company secretary at the point of incorporation. Instead they could do so within 30 days from the date of incorporation.
Hamzah said that SSM figures showed that more than 1.2 million companies were registered in Malaysia as of April 2017.
He added that despite the global economic slowdown, Malaysia was able to clinch RM90.14bil in wholesale and retail trades this February.
“It shows that we can do something good despite the world economic challenges,” he said.
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