Before You Start a Business in Malaysia
In the very first step of the journey to start up a business in Malaysia, is to find out “why do you want to start a business?” Even its sounds common and ordinary, this is a very important question before you could start your business and build up the business. This is because it will help you to sort out your intention and find out the reason why you want to start the business. Once you have figured out this, you may need to ask yourself the following questions:
- Do you have any special skills or talents?
- How would you intend to fund your business?
- How much capital do you need/have?
- What is your business idea?
- Have you carried out any market research for your potential business?
How Do You Start a Business in Malaysia?
1. How to start a business plan and is there any business plan in place?
No matter what type of business you want to start with, a business plan is one of the crucial steps if you have the intention to start up a business in Malaysia. While having a business idea it’s just like having the basic ingredient in the preparation process, it’s also helps you to understand the market more and get to know what others are doing.
2. Create your Business Plan if You Do Not Have One
Keep in mind that a great business idea only can be great if it is paired with a well-written business plan. You can start drafting your business plan by conducting a market research in order to know who are your potential competitors in the market (by understanding their strengths and weaknesses), what are the current market trends as well as potential risks? Do remember that, a good business plan will help you to foresee where your company will be heading to, what are the challenges ahead? And what do you need to do to sustain the business?
3.Evaluate your Finances
You should know how you are going to fund your business and how to register a business in Malaysia? While starting any type of business always has a price, you can begin with a marketing budget. This is a very important step that could be enable you to determine what type of business financing solution fits your business needs.
What are the Procedures to Start a Business?
1. Decide the business type
There are several types of business entities available in Malaysia. Every business entity has its own compliance requirements, tax structure, and more.
a. If you are a local entrepreneur: You can go to register your company as either a Sole Proprietor, or a Limited Liability Partnership (LLP), or General Partnership and Private Limited Company as they are the common business entities available in Malaysia.
b. If you are a foreign entrepreneur: There are two common business types for foreign investors, there are either a locally incorporated company or foreign-owned company. For local incorporated company, it could be a sole proprietorship or partnerships with the condition that they have a permanent resident (“PR”) in Malaysia. Other than the options above, foreign investors also can choose to register their business type either as a private limited company, a Labuan company or a representative office.
2. Name of your Company
Every company requires a name. A good business is more than just a brand name because it is also part of your marketing strategy and brand identity. You should run a name check after you have handpicked the business name:
a. Complete a Request For Availability Of Name form and submit to Suruhanjaya Syarikat Malaysia (“SSM”)
b. You need to pay a fee of RM50.00 for each name applies.
After the name check, you need to proceed for the name registration approval with SSM.
3. Scout for a Business Premise
As well as a good business name, a good business location is part of your marketing strategy. A strategic business location would bring you more potential customers to your business.
4. Registered Your Office Address
In Malaysia, every business is required to have a local registered office address legally.
5. Prepare the incorporation documents
- Memorandum and Article of Association / Constitution
- Statutory Declaration By A Director or Promoter Prior an Appointment
- Declaration of Compliance
- Company name’s approval letter from SSM (one copy).
- Identity card of every director and company secretary (one copy each).
6. Incorporate your company
You need to proceed for incorporate the company via online submission (MYCOID) to SSM within 30 days from the approval date of the company’s name. If you fail to do so, you are required to apply for extension for the name approval or to apply for a new name search.
7. Pay registration fees
A SSM Company registration fee is RM1, 010.00
8. Issuance of a Certificate of Registration
You will receive your business Registration Certificate around 1 to 2 working days after the payment date for the registration fee.
Overall, there are a lot of measurements to take before you officially start up a business in Malaysia. But if you are still unsure or in doubt of where to begin, you can make an appointment with L & Co PLT and we will help you to get started for preparing yourself to begin with your business.