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Malaysia Startup Guide 2024
Malaysia is fast becoming one of the most popular investment destinations according to the World Bank's Doing Business 2018 report. While the World Bank's Doing Business report says that starting a business in Malaysia is not difficult, it can be a daunting task without the proper guidance. This page is the comprehensive guide you need when starting a business in Malaysia, and we will also help you understand the details of setting up a company in this country.
Before starting business in Malaysia
The first step is to understand “Why do you want to start a business?” Although it sounds common, it is a very important question before starting a business because it can help clarify your intentions and reasons. Once you figure out your business purpose, you can ask yourself a few questions:
Do you have any special skills?
Where does the business capital come from?
How much money do you need/have?
What is your business philosophy?
•Have you done any market research?
How to start a business in Malaysia?
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Develop a business plan
No matter what type of business you want to do, if you are considering starting a business in Malaysia, making a business plan is one of the key steps. A good business plan is like having the right ingredients when cooking. It helps you understand the market and know what other competitors are doing. -
If you don't have a business plan, create one
Remember, great business ideas are made from good business plans. Start by doing market research to understand who your potential competitors are in the market (understand their strengths and weaknesses), current market trends, and potential risks. Remember, a good business plan will help you understand where your company is headed, what challenges it will face in the future, and what you need to do to stay in business. -
Assess your financial situation
Find out where your company's capital will come from. No matter what type of business you run, you'll have a budget, and you can start with your marketing budget. This is a critical step to understanding what type of financing solution your business will need.
Steps to Starting a Business
Determine the company type
There are several different types of business entities in Malaysia. Each business entity has different compliance requirements, tax structures, etc.If you are a local entrepreneur: You can choose to register your company as a sole proprietorship, limited liability partnership (LLP) or general partnership as well as company which are common business entities in Malaysia.
If you are a foreign entrepreneur: There are two business entities to choose from: Registered Local Company or Foreign Company. Foreign investors can set up a sole proprietorship or partnership in Malaysia, provided that they have permanent residency (“PR”) in Malaysia. In addition to the above options, foreign investors can also choose to register their company as a private limited company, or a Labuan company or representative office.
Choose a name for your business
Every company needs a name. A good business name is more than just a brand name – it’s also part of your marketing strategy and brand identity. Once you’ve come up with a company name, do a company name search:Complete the “Request For Availability Of Name” form and submit it to the Companies Commission of Malaysia (“SSM”); and
To apply for a company name, a fee of RM30 is required for each name
After searching the name, register the name with SSM for approval to set up the company.
Find an office
Just like choosing a good name for your company, finding a good business location is also part of your business strategy.Registered Office Address
In Malaysia, every business must have a legally registered office address locally.Prepare documents for company establishment
Memorandum and Articles of Association/Articles of Association
Formal statement by the director or promoter prior to appointment
Compliance Statement
Letter from SSM – approving the company name (one copy).
Identity card of each director and company secretary (one copy each).
Set up your company
You need to submit the company registration documents to SSM within three months after SSM approves the company name. If you fail to submit the company registration documents to SMM within 3 months, you will need to reapply for the company name.Pay the registration fee
The company registration fee is RM1,000.Issue of registration certificate
You will receive the company registration certificate within one hour after paying the registration fee.
Are there any business grants available?
Ministry of Energy, Science, Technology, Environment and Climate Change (“MESTECC”)
Bioeconomy Transformation Programme (BTP) (Malaysian Biotech Corporation (“MBC”))
Business Growth Fund (Malaysian Technology Development Corporation Sdn Bhd (“MTDC”))
Commercialisation R&D Fund (Malaysian Technology Development Corporation Sdn Bhd (“MTDC”))
Ministry of Finance (“MOF”)
Cradle Investment Plan Catalyst (CIP 500) (Cradle Fund Sdn Bhd)
Cradle Investment Plan 300 (CIP300) (Cradle Fund Sdn Bhd)
Cradle Fund Sdn Bhd
Ministry of Communications and Multimedia (“KKMM”)
Creative Industries Development Fund (CIDF-SKMM) (Provided by the Malaysian Communications and Multimedia Commission (“SKMM”)
Product Development and Commercialisation Fund (PCF) (provided by Multimedia Development Corporation Berhad (“MDeC”))
How to start a small business in Malaysia?
When starting a business, some people want to develop a large business, while others prefer to start a small business. The reasons for starting a small business vary from person to person – some want to spend more time with their family; some want to try the challenge of being an entrepreneur; and some want to have more flexibility in their working life.
Just like other countries, small businesses in Malaysia are booming – more and more people are starting small businesses in Malaysia. From fashion, e-commerce stores to affiliate marketing, Malaysians are taking the challenge of seeking business opportunities from small businesses. Foreigners can also choose to start a small business in Malaysia.
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Whether you are a local entrepreneur or a foreign investor, you can start a small business in Malaysia.
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Before setting up your company, you first need to think carefully about a business plan, as well as your budget and marketing plan.
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Next steps:
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Name your business (remember to search for your company name)
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Finding the right office location
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Company Registration:
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Incorporating a corporation is a common form of business entity for small businesses and professional groups.
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How to start a business at home?
As the name suggests, a home business is a business whose main office is located in the owner’s home. Many Malaysians are exploring the home business niche. To be precise, more and more people are starting a business from home. While the idea of working from home or starting a home business sounds appealing, not everyone knows how to start a business from home.
Start by figuring out what type of home-based business you want to start:
First figure out what kind of business you want to run at home (here are some popular home-based businesses):
Family-based child care services (children under 12 years old)
Childcare
Caring for the Elderly
Accounting and Bookkeeping Services
Consultant
Network Business
Web Design
Professional Blogger
Home baking
Tutoring
Nail Art
Tool repair business
Pet Care
Virtual Assistant
Laundry business
Start a business
You can then draft a home-based business plan, marketing strategy, and financing plan. Although you don't need to find an office, you will need to name and register your business.
Register your home-based business
In Malaysia, you can register your home business as a company.
How can our accounting help you to start your business in Malaysia?
You can choose to do it yourself or hire a professional business registration service company to help you set up. Our accountants will always be there to assist you! Please contact us to learn more about our company registration services and affordable company registration packages!
Doing business in Malaysia can bring good returns on your business investment. If you are planning to start a new business in Southeast Asia, whether it is a small business or a large investment, Malaysia has a variety of options to offer.