With its more than respectable 24th-rank position in the World Bank ’ s 2018 Ease of Doing Business list, Malaysia is becoming ever stronger as an investment target. Although this gives Malaysia such high rankings, it is still a test of your wits to build up a business without guidance. Getting through the procedures of registering a business, starting it up part-time from home, figuring out how to go about doing so and which type of business to engage in is also rather difficult.
This detailed introduction to doing business in Malaysia will help them have a clear picture of how to go about registering a company. They include starting a business from home, registration, company formation, establishment of an online small business and other things necessary. It provides guidance on how to start, explaining what entrepreneurship is, how to launch a small enterprise and describes the process of creating an online business in Malaysia. Also, it offers advice on the process of drafting a business plan, the essentials for doing business, what goes into starting and running a business, and planning the establishment of some sort of small-on-the-homefront company in Malaysia.
Content Outline
Before You Start a Business in Malaysia
The initial step in your entrepreneurial journey is understanding the fundamental question: It may be a common question, but it is also one of vital importance–why do you want to start a business? This helps to explain what you are trying to accomplish and why. Once you’ve identified the purpose, you can delve deeper by asking yourself:
- Is there any special know-how that you can bring to your business?
- But how are you going to capitalize your business?
- How much capital do you need or have for your business?
- What is your business’s central concept?
- Do you know your industry and customers well from careful market research?
How To Start a Business in Malaysia?
Starting a business in Malaysia demands a solid business plan. Regardless of your business type or idea, creating a comprehensive plan is a crucial step. Similar to the essential ingredient in a recipe, a business idea serves as the foundation, enabling you to understand the market and gain insights into your competitors.
If you haven’t developed a business plan yet, it’s time to craft one. Remember, a brilliant business idea becomes impactful only when paired with a well-structured business plan. Start by conducting market research to identify potential competitors, understand market trends, and assess potential risks.
A robust business plan acts as a roadmap, guiding your company’s direction, foreseeing challenges, and outlining strategies to sustain your business.
Understanding your finances is equally vital. Determine how you’ll finance your business and navigate the registration process in Malaysia. Initiating any business incurs expenses, so begin by setting a marketing budget. This crucial step helps identify the financing solutions your business requires.
What Are the Steps to Start a Business?
Step 1: Decide the business type
The process of starting a business at home starts out with the choice of your form of organization. What kinds of companies are to be found in Malaysia, and what compliance requirements and tax systems do they have?
Each of these represents a common type of business organization in Malaysia, and local entrepreneurs can take their pick by registering as any one of them.
For foreign entrepreneurs, two primary business entities are available: Foreign-owned, locally incorporated firms. All foreign investors can set up a unilateral company or partnership in Malaysia if they have PR status. Foreign investors may also register their business as a private limited company, a Labuan company, or a representative office. The regulations and advantages vary for each choice, however.
Step 2: Name your business
Choosing a name for your business is important. A business name is more than just a name, it’s part of your branding and marketing. You need something strong to make you stand out. Once you’ve chosen a business name:
Complete the Request For Availability Of Name Form and deliver it to Suruhanjaya Syarikat Malaysia (“SSM “).
Each name application will cost a fee of RM30.00.
After passing the name check, go on to register that chosen name with SSM and wait for approval from Company Formation in Malaysia. This will ensure that your chosen business name is officially registered and approved.
Step 3: Scout for a business premise
Like a good business name, selecting an appropriate and ideal strategic location is closely related to marketing strategy. Other factors such as accessibility, closeness to your intended audience, competition and degree of suitability for the brand itself all come into play when choosing a location. Think about it, the right location can increase name recognition and have a profound impact on your business success.
Step 4: Registered office address
Malaysia makes it a legal requirement for all business enterprises to have at least one locally registered office address there. It’s the office where you mail correspondence and is regarded as its official place of business. A legally registered office address puts everything in accordance with the country’s legal framework. Also, a local office (for example) will assign a space where processing of business there can take place.
Step 5: Prepare the incorporation documents
- Memorandum and Article of Association or Constitution
- Statutory Declaration by director or promoter before appointment
- Declaration of Compliance
- SSM Attendant’s approval letter (1 certificate).
- One copy of every director’s and company secretary’s identity card.
Step 6: Incorporate your company
SSM Incorporation Documents must be filed within three months following the approval by SSM of the company name. If you fail to file your incorporation documents with SSM within this time period, you must start all over and reapply for a search.
Step 7: Pay registration fees
Incorporation proceedings may be initiated by paying RM1050.00 to the applicant. From this step, the presence of the company secretary is necessary.
Step 8: Issuance of a Certificate of Registration
Instantly or within a few hours after successful registration. You’ll receive an email notification.
Are There Any Business Grants Available?
Many aren’t aware that the Malaysian government offers financing schemes to support entrepreneurs and SMEs looking to understand the business registration process in Malaysia. Beyond financing, the government provides grants for business growth through various avenues:
Ministry of Energy, Science, Technology, Environment & Climate Change (“MESTECC”)
- Bioeconomy Transformation Programme (BTP) by Malaysian Biotechnology Corporation (“MBC”)
- Business Growth Fund by Malaysian Technology Development Corporation Sdn Bhd (“MTDC”)
- Commercialisation of Research and Development Fund by Malaysian Technology Development Corporation Sdn Bhd (“MTDC”)
Ministry of Finance (“MOF”)
- Cradle Investment Program Catalyst (CIP 500) by Cradle Fund Sdn Bhd (“Cradle”)
- Cradle Investment Programme 300 (CIP300) by Cradle Fund Sdn Bhd (“Cradle”)
- Cradle Seed Ventures Fund 1 (CSVF1) by Cradle Fund Sdn Bhd (“Cradle”)
Ministry of Communications and Multimedia (“KKMM”)
- Creative Industry Development Fund (CIDF-SKMM) by Suruhanjaya CommunicAsia dan Multimedia Malaysia (“SKMM”)
- Product Development and Commercialisation Fund (PCF) by Multimedia Development Corporation Sdn Bhd (“MDeC”)
For more detailed information, refer to our previous article Malaysia Grants vs Loans: What’s the Difference?
How to Start a Small Business in Malaysia?
In regard to opening their own businesses, many people harbor all sorts of wishes. Entrepreneurs seeking big businesses Apart from these, many would rather engage in small business. The motivations behind starting a small business vary widely: For some, a better balance between family and work is the lure; for others it’s an entrepreneurial lifestyle of freedom and independence. Still others want more flexibility on the job.
Generally speaking, the increase of small businesses in all countries seems to be on a similar path as Malaysia. Seeking a new life Getting involved in starting one’s own small business is becoming more and more popular. Malaysians have developed in many different directions, from fashion to on-line shops and even affiliate marketing. Moreover, foreigners can also start up their own small businesses in Malaysia.
- Since Malaysia is a small country, in fact both local entrepreneurs and foreign investors can run a business here. Going into business requires developing a thorough plan, including budgets and marketing plans. Only after everything’s been set out in detail should you think about incorporation.
- The subsequent steps involve:
- What’s in a name? (Be sure and check out the business names.)
- Looking for an office space that is right for the company, and seeking a strategic location.
- Company incorporation:
Most small businesses or professional bodies adopt Company as the legal form of their organization.
How to Start a Business from Home?
A home-based business, of course, has its headquarters in the owner’s home. As for home-based businesses, there’s now something of a trend toward them in Malaysia. Many are beginning to explore the feasibility of establishing enterprises in their homes. Thus, while working from home or opening a home-based business sounds exciting, not everyone is acquainted with how to open a small scale enterprise at home or what hurdles exist for starting a company out of the house in Malaysia.
- So the first step in starting a home-based business is determining what kind of enterprise you want to engage in. Here are some popular options:
- Child Health Care Business (12 years and under)
- Home Child Care
- Elderly Care
- Home-based Accountant and Bookkeeper
- Consultants
- Online Business
- Website Design
- Professional Blogging
- Home-based Bakery
- Home-based Tutoring
- Nail Salon
- Gadget Repair Business
- Pet Care
- Virtual Assistant
- Laundry Service
2. Get down to business
Next, take the time to collaborate with others on crafting a well-thought-out and comprehensive business plan for your exciting home-based venture. This plan should encompass various aspects, including a strategic marketing strategy tailored to your target audience and a solid financial solution to ensure sustainable growth.
One advantage of a home-based venture is that you won’t need to search for a physical location, allowing you to focus your efforts on building a strong brand presence and delivering exceptional products or services. To make your business stand out from the crowd, give it a distinctive name that reflects its unique value proposition and resonates with your target market.
3. Incorporate your home-based business
To formally establish your home-based business in Malaysia, register your business at SSM for enterprise. However, it’s important to note that only Malaysian residents or Permanent Residents (PRs) are eligible for this process. Foreigners do not have the option to incorporate a home-based business in Malaysia.
How Can FastLane Group Help You to Start a Business in Malaysia?
If you’re contemplating starting a business in Malaysia, you have the choice to manage it yourself or seek assistance from a professional company registration service. At FastLane Group, we’re here to lend our support! Get in touch with us to explore our comprehensive company incorporation services, specially tailored for FastLane Group or any other business. Discover our range of affordable company registration packages designed to meet your specific needs. Contact us to find out how we can assist you in initiating and managing your business ventures in Malaysia.