Complete Guide to Start a Business in Malaysia

Starting a business in Malaysia can be an exciting and rewarding venture. However, it’s important to understand the regulations and laws that govern the process.

In this guide, we will provide you with a step-by-step overview of how to start a business in Malaysia.

Step 1: Assess your finances

Determine the initial capital needed to start your business, which should cover expenses for equipment, inventory, marketing, and operations. Additionally, explore funding sources such as personal savings, loans, investors, or grants. By evaluating your finances, you can gain an understanding of your business’s financial requirements and create a strategy to obtain funds.

Step 2: Conduct market research

Analyze your target market through surveys, interviews, and focus groups. Research competitors to identify opportunities and challenges. Determine demand for your product or service to position your business for success.

Step 3: Create a business plan

Develop a detailed plan outlining goals, strategies, and financial projections. Include analysis of industry and market, marketing plan, and realistic financial projections. A well-crafted plan will guide growth and attract investors and partners.

Step 4: Choose a business structure:

Decide on the type of business structure that is best for your business, such as a sole proprietorship, partnership, or private limited company. Each structure has its own legal and tax implications, so it’s crucial to understand the regulations associated with your chosen structure.

Step 5: Register your business

Start by registering with the Companies Commission of Malaysia (SSM). Ensure compliance with SSM’s regulations and requirements. Depending on your business nature, additional licenses and permits may be required from government agencies. Industries such as banking, insurance, or healthcare have specific licensing requirements. Research and adhere to regulatory bodies’ regulations for smooth business operations.

Step 6: Open a dedicated business bank account

It is highly recommended to open a separate bank account specifically for your business. This will allow you to effectively manage and track your personal and business finances separately, ensuring better organization and financial clarity.

Step 7: Legal compliance

Ensure compliance with all legal requirements, such as tax registration and employment laws.

For tax registration, this includes registering for Goods and Services Tax (GST) if necessary, filing tax returns, and meeting other tax obligations. Seek guidance from the Inland Revenue Board of Malaysia (IRBM) for proper compliance.

For hiring employees, familiarize yourself with employment regulations in Malaysia. This includes minimum wage requirements, proper employment contracts, and labor law compliance. The Ministry of Human Resources provides resources and guidelines for employers.

Conclusion

This guide offers step-by-step procedures and advice to help you navigate the process. Remember, it’s always advisable to seek professional advice and consult with relevant authorities to ensure compliance with the latest regulations and laws in Malaysia.

Our services include:

• Advisory services for new company registration and incorporation in Malaysia
• Incorporation and registration services for public and private limited companies and enterprises
• Strike Off Company Services
• Monthly corporate advisory services such as prepare resolutions, record minutes of meeting & maintain statutory books, filing of annual returns, track filing deadlines and attend to your specific business needs.
• Registered office provision