101’s for Business Owners On Starting a Small Business in Malaysia

 

Being the melting pot of Asia, Malaysia is no stranger in being the land of many opportunities which comes as no surprise why most small business owners look to Malaysia when it comes to forming a business. This is applicable for both the likes of newly arrived foreigners or expatriates living in Malaysia. The myriad of industries in Malaysia are thriving and it’s often seen as a hotbed in the commercial environments for business. Taking into account these factors, it is easy to surmise that a business venture in Malaysia won’t leave you regretting. Though starting a business in this lovely country is not all that difficult, it proves a little challenging -- especially if you lack necessary business expertise in registering a new company in Malaysia.

 

Understanding Malaysia

Having been an ex-British colony, English is one of the foremost spoken languages, especially when it comes to business and commercial matters. However, Malay or Bahasa Malaysia is the national language of Malaysia. Its political structure and legal framework are largely derived from British systems.

The baby step in learning how to register new company Malaysia is by learning more about Malaysia and its citizens. The best way? By traveling around and observing Malaysia; soak in its urban centers and its rural areas. Get familiar with the country and its people, foods, cultures, and laws, of course. Most importantly, get to know the requirements of how to register new companies in Malaysia. Simultaneously, keep updated with the local market trends, so you know what works and what doesn’t. You may also gather information from the Internet and speak with the locals.

 

Crafting a Simple Business Plan

 By failing to prepare, you are preparing to fail.

— Benjamin Franklin

We’re are very well aware that with most things on the road to success, planning is the foremost element required. Therefore, it is unrealistic to run a successful business without an effective strategy in place. A business plan might be one of the short-term or long-term. A short-term plan is typically for a year to 2 years, whereas a long-term plan is usually one which is set to last for 5 to 6 years. In your business plan, be sure to analyze and study the market with regards to your skills, product or service— identifying your competitors and actively auditing how/what they are doing is essential practice. Who are your target customers? You would also need to assess how much capital you require while learning how to register a new business here in Malaysia.

Although crafting a great business plan may come off tedious, there are a whole lot of free business plan templates you can easily find on the Internet. This will help you properly map out the strategies you need to implement. It’s commonplace that at its interim, the operational costs might be higher and the marketing plan might not exactly work best, leaving you requiring financial assistance. Also, don’t forget to draw up contingency plans just in the event the first one fails, you can adopt the second plan or perhaps a different business plan altogether.

 

Deciding the Type of Business

Sole Proprietor, Limited Liability Partnership (LLP), or General Partnership are your registration options if you are a local business owner wanting to register a business in Malaysia. These are the common business avenues available for the purposes of registering a business in Malaysia.

Though, if you are a foreign entrepreneur interested in registering your new company Malaysia, it is different. The agency for registration of business in Malaysia allows for foreign investors to set up sole proprietorship or partnership with permanent residency status. Besides the abovementioned options, foreign investors can also learn how to register a new company in Malaysia for a Sdn Bhd (Sendirian Berhad, a private limited company), a Labuan company, or a representative office.

 

Choosing a Business Name

Choosing a business name is crucial to bear in mind when learning how to register new companies in Malaysia. In all honesty, one of the tougher stages in registering a new company in Malaysia is picking the perfect business name.  You can run a quick check with Suruhanjaya Syarikat Malaysia (SSM) --the commission for registration of business Malaysia on their website. You can also get a local agency to make inquiries about how to register a new company Malaysia. 

Run a name check upon selecting the business name. You can complete the Request for Availability of Name (Form 13A of the CA) and submit to SSM. There will be a fee of RM30.00 for each name applied. Once you are done with the name check, you can register the name with the commission for registration of businesses in Malaysia, SSM, to get approval. If your name is approved by the Commission for registration of business Malaysia, SSM, it will then be reserved for three months from the date of registration.

 

Searching for a Business Premise

Your marketing strategy should consist of a well-thought-out business location. Hence, it’s key to make proper research, in order to pick the best location for your business premise. This means taking into account your business district area, telephone numbers, and definitely accessibility. Every business in Malaysia must have a legally registered local office address. Some of the integral points to consider when scouting for a location are:

• Transportation
• Flow of traffic
• Ease of access
• Logistics
• Parking
• The convenience of facilities and available amenities

 

Incorporation Documents for Registration

You need to submit the Incorporation Documents to the commission for the registration of business Malaysia, SSM, within 3 months from the approval date of the company’s name. Failure of doing so will result in a need to apply for a new name search altogether. Documents required by the agency for registration of business in Malaysia are as follows:

• Memorandum and Article of Association/Constitution
• Statutory Declaration by a Director or Promoter before Appointment
• Declaration of Compliance
• Company Name’s approval letter from SSM (1 x copy)
• Identity Card of each company director and company secretary (1 x copy each)

 

Upon satisfying all the aforesaid requirements and paying the company registration fee of MYR1,000 to the SSM, you will receive your new business registration certificate in an hour.