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Authorized capital versus Paid-up capital of Malaysian Companies

Update Date:2015-10-28 9:02:39 Source:Tannet (Malaysia) Sdn Bhd Views:625

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What is Authorized Capital?

A company need to confirm its authorized capital before proceed to the registration with SSM (Suruhanjaya Syarikat Malaysia). The amount of authorized capital will be reflected in the Memorandum of Association of every Company.

Why authorized capital?

A company can only issue its paid-up capital up to the authorized capital that registered with SSM.

How it works

If a company has authorized capital of RM100,000, then company can only increase its paid-up capital up to the maximum of RM100,000 at any time.

However, if that company intends to increase its paid-up capital up to RM250,000, the company needs to increase its authorized capital from 100,000 to 500,000 before it can increase its paid-up capital.

Any company is not allowed to increase paid-up capital beyond its authorized capital as stated in the M&A of the company.


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