According to the world bank economic rating, Malaysia currently ranked 15th among 190 economies in the world, according to WorldBank (click here). Because of its steady economic growth and ease of doing business, most of the foreigners, including locals, wants to set up a company or business in Malaysia.
It does not matter what type of business you want to start in Malaysia; firstly, you must appoint a certified company secretary. A company secretary in Malaysia is required to incorporate a company with SSM (Malaysia Company Commission). However, this article is going to explain —the fundamentals of launching a local business in Malaysia.
Basic Requirement for Incorporating A Local Company
There are some rules and legal requirements for registering a local company in Malaysia (see this link). Before you consider launching a local company in Malaysia, you should do the following–
- Must appoint a company secretary.
- Company secretary must be registered with SSM.
- Minimum paid up capital —Rm 1.
- Business must have at least one director.
- The director of the company must be 18 years or above.
- Business must have registered office address.
- Must have at least one shareholder.
It is important to note that, in accordance with the law, at least one resident director is required to establish a company in Malaysia. If you want to hire a foreigner as a director, he or she must have a work permit along with a permanent residence certificate or must hold a dependent visa.
Most Common Types of Local Companies in Malaysia
These are the two main common types of company in Malaysia –
- Company limited by Shares
- Unlimited company
A company that is limited by shares has the capital and can be integrated into a private company. When it is established as a private company, the word Sendirian Berhad (Sdn Bhd) appears with the company name. For public company- Berhad (Bhd) appears with the company name. In an unlimited company, the liability of members is infinite. However, its capacity is not limited by shares.
Incorporation Process of Local Company
- Company Name Search.
- Name Reservation.
- Submission of necessary incorporation documents.
- Successfully paying necessary registration fee.
Once you are done with the registration of the local business, now you can move to the next phase for making your business success.
Tips for Making Your Local Business Success
Success in today’s business requires flexibility, good planning and organizational skills, according to BizJournals. Here are some tips that are required to make your local business successful.
- Get Organized: your business must be organized to be successful. These will help you to complete the necessary tasks and stay on top of things to be done.
- Analyze Your Competition: Competition produces the best results. So, don’t be afraid to study and research on competitors.
- Stay Focused: Focus on achieving your short-term goals as it will take time for people to know who you are.
- Provide Great Service: Providing better services to customers means they will again come to you instead of going to your competitors.
Malaysia is one of the best places for making a business succeed. The government of Malaysia provides lots of facilities to bring more foreign direct investment in the country. If you don’t have enough money to start a corporate company, try starting a small local business and plan something for