Malaysia has many small businesses that have mushroomed in the recent past. They include but not limited to, web design, SEO, affiliate marketing, e-commerce, and the fashion industry. Suruhanjaya Syarikat Malaysia (SSM) is the authority that registers businesses in the country. Besides, it provides business information to the public. SSM ensures corporate legislation and business registration by monitoring activities, and full enforcement for better development in the corporate and business sectors of the country.
Below are the 5 Most Important steps to take when starting a business in Malaysia.
- A Business Plan
A business plan is significant in helping one to start a business in Malaysia. It helps in knowing what others are doing and understand the market. For a good business plan, market research helps to know the competitors in the competitors in the market, current market trends, and possible business risks.
Also, knowing the leading challenges for business sustainability is vital when writing a business plan. A budget is equally important for marketing the business at its initial stages for one to figure out the best business financial solutions it needs.
- A Business Name
To start a business in Malaysia, one should have at least three names associated with the product or service for the trade. Then, one should present to the SSM by filling in an offline form known as Borang PNA 42. Also, one can register online through the ezbiz. To do away with confusion, anyone who registers for a business is encouraged to use one term for the business and trade names. It eases advertisements, filling of government forms, and applications. For a business, one can choose catchy names such as; Cozy Furnitures enterprises or Sleek Cosmetics.
The name should show respect to the citizens and the public. Besides, it should plainly express the significance of the business under this name. Also, it’s advisable to have a name close to the products it will sell, or services it will offer. Codes provided in the online registration through links enable one to have this right.
- Availability of the Business Name
Through its online system, SSM helps to check the availability of the business name. It validates the business by enabling one to; determine the distinctive name to preserve, avoid more charges, and get registered with ease.
- Business Name Registration
Any individual starting a business in Malaysia should fill their name in form Borang PNA 42. Individuals need to write their name as it appears in their national Identity card or permanent residence documents. Besides, the business name (trade name) one decides to use should be the one approved by SSM. Also, one should fill form Borang A. It explains the exact date one will be ready to start the business. The date should be on registration ar after the registration date.
For partnership Business name registration, each partner registers as a user through the online system, then activates their account by a thumbprint, and then both register as partners.
- Registration fee and certification
For a sole proprietorship using one’s name as stated in the identity card, the person would pay RM 30.00. For sole proprietorship or partnership using the business trade name, the person would pay RM 60.00. For registration of branches, each would cost RM 5.00, and RM 10.00 for printing details for the business.
Registered businesses in Malaysia should go through the companies’ commission in the country (SSM). It’s the only Statutory body formed under the parliament act to regulate business affairs and corporate affairs. Registration of businesses in Malaysia is justifiable for one year, renewed yearly for five years. Regardless of the size of business should register to avoid problems with legal authorities in the country.
A fine of up to RM 50 000- or two-years imprisonment is charged to those who fail to register their businesses and get valid certificates from SSM. Despite registering with SSM, business people in the country must have permits, licenses, and letters of approval from relevant authorities in the country.
Malaysia is a center of cultivation, trade, manufacturing, and culture. For decades the country’s economy has thrived massively over time. Most business-minded people will find it quite easy to start a business in this country. However, it’s significant for those planning to start a business here to know the advantages, challenges, requirements, and legalities involved in the whole process for a successful business.