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How To Start A Business In Malaysia
02 March 2020

How To Start A Business In Malaysia: Plan Ahead For Your Future

 

A lot of people want to start a business. Hearing successful stories from entrepreneurs will inspire anybody to create histories like them.

But not many know how to start a company. With zero experience, new small businesses might end up losing than gaining what they spent to support their business. One might ask, “How to start a business in Malaysia''

Worry not, starting a business in Malaysia is not that difficult. 

You might need some help.

With that, this article sums up all you need to know about starting a business in Malaysia.

 

The Steps To Start A Business

 

Starting a business can be quite thrilling, especially when you require an understanding of entrepreneurship and need to deal with several issues, such as registering your first business.

Don’t worry, here are simple key steps for amateur entrepreneurs like you to get started with your own business:

1) Determine the type of business entities

  • Local entrepreneur: you can register your company as Sole Proprietor or Limited Liability Partnership or General Partnership and Company.

  • Foreign entrepreneur: you can register your company as a locally incorporated company or foreign-owned company, or private limited company or Labuan Company or a representative office.

  • Online entrepreneur: does not require any registration but you need to start thinking on which businesses are best to sell online.

Check out our other article, following the step guide to build an online business:

Just Tell Me How To Start Online Business in Malaysia. 

 

2) Brand name of your business

  • A brand name is a part of marketing strategy and your company identity.

  • You may complete register your business name with Suruhanjaya Syarikat Malaysia (SSM) and submit the form to get approval. 

3) Search for a business premise

  • Having a good location to start up your store is important, especially to know your business competitors around the premises

  • Unless you are starting an online business, all you need to find is a good website to put all of the information and products.

4) Registered office or building address

  • Regardless of every business in Malaysia, you have to register your office address legally before you open the store.

5) Prepare the incorporation document

  • Memorandum and Article of Association / Constitution

  • Statutory declaration by a director or promoter before appointment

  • Declaration of compliance

  • Company name’s approval letter from SSM (only one copy)

  • Identity card of every directors and company secretary

6) Incorporate your company

  • You are required to submit the Incorporation Documents to SSM within the given time, 3 months from the approval fate of the business’ name by SSM.

7) Pay registration fee

  • The business registration fee usually cost around RM1,000

8) Issuance of a certificate of registration

  • You will receive your business registration certificate within one hour after the payment transaction of registration that you had made.

 

What Do You Need To Consider To Start A Business

Before you plan to start a business on your own, try to seek some significant factors that may help when you are launching them. 

A good plan ahead may help you to eliminate the risks and obstacles during the business journey. But, what are those factors? 

Let me help you prepare for that list:

  • Know when to find your own competence – Learn to search for your own ability to handle a business and customers at the same time.

  • An effective business plan - Always find a unique point in keeping your business, while studying the market trends thoroughly. 

  • Review the surroundings and business - Always keep a specific area for your regular operations and no matter what the business is, always create your own style of dealing.

  • Analysis of Competitors - always find rival strategies, in order for you to develop effective strategies for your business.

  • Find a start-up business programs to learn more – you may learn on how to prepare a realistic project report and implement your plan methodically

  • Legal documentation - Always keep certificates for starting up a business well planned before the local bodies ask you.

  • Time factor – the process requires for you to go through all formalities from registration to licensing with government

  • Funding and Budget – think ahead on how to find funds for your business (fund from government or take a loan) and plan properly on the budget of a company.

 

Need Financial Aid To Kick Start Your Business?

 

It is a fair challenge for business starters, especially when you are trying to kick start your venture but you have empty pockets.

For those amateur entrepreneurs who are seeking for their businesses’ financial aid, try to check out these suggestions on so you can obtain fund from one of them:

1) Government Grants and Loans

  1. TEKUN – Different schemes, including special programmes for ex-military personnel and young professionals. Funding range: RM10,000 –RM100,000

  2. PROSPER – For Bumiputera youths in various industries. Funding range: Up to RM100,000

  3. PUNB – All kinds of businesses, including retailers and wholesalers. Funding range: Depends on the scheme.

  4. TERAS – High performing Bumiputera business. Funding range: Up to RM1 million

  5. SUPERB – Bumiputera youths. Funding range: RM500,000

  6. MARA - For all business schemes. Funding range: Depends on the scheme.

  7. Yayasan Penjaja Dan Peniaga Kecil 1 Malaysia – Non-Bumiputera who starting a small business. Funding range: RM5,000 – RM20,000 

  8. MyCreative Ventures – Only for entrepreneurs in the creative and art industries. Funding range: Up to RM5 million

  9. Cradle Fund Sdn Bhd – Malaysian business start-ups. Funding range: Up to RM300,000 (Cradle Investment Programme) and Up to RM800,000 (Direct equity)

  10. SME Bank – Malaysian SMEs. Funding range: RM100, 000 – RM750,000 (small business) and RM50,000 – RM1 million (Business Accelerator Programme)

2) Crowdfunding

  1. To reach out and find support through people.

  2. To provide a chance to meet finders and construct a foundation for your business

  3. Most famous crowdfunding in Malaysia: 

pitchIN, ata-plus, GoGetFunding, FundingSocieties, Actyvate, MyStartr, Ethis Ventures and LaunchGood

 

3) Angel Investors

  1. ‘Angel’ due to a businessperson who is investing financially for the company; while expecting the return financial rewards.

  2. Try to seek the angel investors that suits the best for your business in Malaysia in these platforms: 

Angel Investment Network, Capital, BizAngel and Cradle Fund. 

 

4) Venture Capital

  1. You have a third party that owns a part of your owner share company as the investor contributes finance on your business.

  2. Few ventures that you can look up to in Malaysia and South East Asia:

Nexea, RHL Ventures, TBV Capital, 500 Start-ups, Vertex Ventures, and Spiral Ventures

 

5) Friends and Family

  1. You are going to secure your business’ financial with financial support from your friends and your loved ones too.

  2. You may prepare a black and white contract to ensure your relationship will not ruin and play fairness.

 

6) Self-Funding

  1. The best investor for your business is yourself.

  2. You may use your personal savings or selling your assets to generate cash for the business – ensure you have other saving money as an emergency fund.

 

7) Small Business Loans

  1. Ensure you have a good credit score before you are considering getting a business loan from the bank.

  2. You need to grant the officers with few things such as:

credit card history, bank statements and other financial information.

 

Conclusion 

Everyone can create successful business histories like other successful entrepreneurs out there. 

But, to make your dream come true, you have to follow the step guides, alert on things that you might need to consider as start-up and learn to find financial aid for your business development too. 

In this way, you will be ready on your way to launch your business right. 

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