FREQUENT TECHNICAL QUESTION (FTQ) Can foreigners hold shares and what is the maximum shareholding allowed in a local private limited company? Of course foreigners can hold shares and there is no restriction on the maximum shareholding. In fact, foreigners can own 100% of a company. There is no requirement to divest 30% shareholdings to any locals unless the business requires Government approvals. However, if the company intends to transact with Government Departments which will require licensing, the usual minimum local “bumiputera” participation must be 30% and above, unless otherwise stated. The structure of directorships and shareholdings of 50% and above is a more favorable in obtaining Government contracts. Compiled by LynnServe Management Sdn. Bhd. Disclaimer : FTQ is an information only. LynnServe takes no responsibility for any consequences of actions taken based on information circulated in FTQ Series and will not be held liable for any advisory views or services rendered. Kindly do not reproduce this information circulated without the permission of LynnServe.
Posted on: Tue, 01 Oct 2013 03:33:41 +0000
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